Academic Year 2014 - 2015
Stafford, PLUS, and Perkins Loans
All new Stafford and/or PLUS Loan borrowers will need to complete the following:
Stafford (Student) Loans
Stafford Loans (Subsidized and Unsubsidized) are available to students. The interest
rate on loans as of July 1, 2013 will be 3.86% fixed for Subsidized and Unsubsidized
Loans. Repayment begins 6 months after the student ceases half-time enrollment. A
Master Promissory Note (MPN) and Entrance Counseling session are required before loans
will be processed for first time Stafford Loan borrowers.
To apply for the Stafford Loan, students MUST complete the following:
- Complete the Direct Stafford Loan Master Promissory Note which is available online
at www.StudentLoans.gov You will need your Personal Identification Number (PIN) to complete the MPN. This
is the same PIN used to complete the Free Application for Federal Student Aid (FAFSA).
To request a new or duplicate PIN students can go online to www.pin.ed.gov.
- Complete the Direct Stafford Loan Entrance Counseling online.
For those students leaving the college:
Students who are graduating, withdrawing, or not planning to return to the college
MUST also complete Stafford Loan Exit Counseling. For those students who received
a Federal Direct or FFELP Stafford Loan, you MUST complete Stafford Loan Exit Counseling. Students may also use the NSLDS website at www.nslds.ed.gov/nslds_SA/ to view their individual Federal (Perkins, Stafford, and PLUS) Loan data at any time
using the Personal Identification Number (PIN) number they were issued while completing
PLUS (Parent) Loans
PLUS Loans are for parents of undergraduate students who wish to borrow to help cover
educational costs. A credit check is required for all PLUS Loans. The interest rate
is currently 6.41% fixed for PLUS Loans and repayment begins 60 days after the final
disbursement of the academic year. Parents also have the option of deferring their
PLUS Loan payments while their student is enrolled at least half-time status. Parents
may contact Common Originations and Disbursements (COD) at 1 (800) 557-7394.
To Apply for the Parent (PLUS Loan), Parents MUST complete the following:
- Parent must complete the PLUS Loan Request Form either by paper or online at www.StudentLoans.gov. Paper applications may be mailed, faxed, or scanned and emailed to the Financial
Aid Office. Please click HERE for an application (PDF) or visit www.StudentLoans.gov.
- Parents must also complete the Direct PLUS Loan Master Promissory Note which is available
online at the above web address. Parents will need their Personal Identification
Number (PIN) to complete the MPN. This is the same PIN used to complete the Free Application
for Federal Student Aid (FAFSA). To request a new or duplicate PIN parents can go
online to www.pin.ed.gov.
- Parents who are DENIED for a PLUS Loan have multiple options. Parents may wish to
contact COD at 1 (800) 557-7394 to appeal the credit decision or to learn about applying
with an endorser. For students whose parents are denied for PLUS Loans, additional
Unsubsidized Stafford Loan proceeds are available. The maximum amount of Unsubsidized
Stafford Loan a student may receive is $4000 for freshmen and sophomores and $5000
for junior and senior level. These loans will automatically be processed on the student's
behalf if the PLUS Loan is denied and students who wish to reduce or cancel the Unsubsidized
Stafford Loan should notify the Financial Aid Office in writing.
- Students are notified of the amounts of loans processed in several ways: Letter to
the Parent, Letter to the Student, Disclosure Statement from COD, Loan Receipts when
funds are disbursed, Award Letter etc.
These loans are for students with high need. Eligibility will be determined by the
school based on funds available and the student will be notified of their eligibility
on their award letter. The interest rate is 5% fixed on Perkins Loans and repayment
begins 9 months after the student ceases half-time enrollment. Not all students will
qualify for the Perkins Loan program. Students are also advised to read the Perkins
Loan Addendum for information regarding the Perkins Loan Program and Promissory Note.
Remember that these must be mailed back to the Financial Aid Office at P.O. Box 1000,
Ferrum ,VA 24088 with an original signature. Copies or faxes will not be accepted.
To apply for the Perkins Loan, students MUST complete the following:
- Students must complete the Perkins Loan Master Promissory Note (PDF) and return the note with an original signature to the Financial Aid Office.
- Students must read the Perkins Loan Fact Sheet (PDF) and then complete the Perkins Loan Entrance Counseling Test (PDF). Students MUST pass the test at 70% or better.
For those students who are leaving the college:
Students who have received a Perkins Loan while enrolled at Ferrum College and who
will graduate, have withdrawn, or do not plan to return are required to complete exit
counseling. Students will need to complete the Perkins Loan Exit Counseling Test (PDF) and pass at 70% or better. Students should review the following document (PDF) detailing information regarding Perkins
Loans prior to completing the exit materials. Students will also receive a Perkins
Loan Disclosure Statement to sign and return to the Financial Aid Office to complete
the Exit Counseling Process. Remember that transcripts will be held until all exit
counseling information is completed and received by the Financial Aid Office.
Alternative Loans are offered by private lending institutions and are not guaranteed
by the federal government. These funds are available to students who may not be eligible
for federal financial aid or who may need to bridge the gap between the actual cost
of education and their federal financial aid.
The Financial Aid Office advises students to exhaust all federal options first before
seeking alternative loan options.
No loans will be processed until all requested documents (taxes, worksheets, counseling,
promissory Notes, etc) are completed in full.