Loan Programs

//Loan Programs
Loan Programs2020-01-31T14:45:30+00:00

Loan Programs

Code of Conduct

Federal Direct Stafford and PLUS Loans

General Disclosures:

  • All loan programs will be disbursed in 2 equal installments during the term(s) for which the student is enrolled.  Proceeds are transmitted to the Student Accounts and disbursements are made approximately each week for loans that are eligible for disbursement.  Disbursements for all first-time Stafford Loan borrowers are held for 30 days after the start of the first semester.
  • Students and parents may access the Repayment Estimator online for estimates/samples of monthly repayment amounts.
  • Repayment information, including deferment, forbearance, and consolidation information is located online on the Federal Student Aid website.
  • In compliance with HEOA 485b, students and parents of students who borrow Title IV Federal loans should be aware that the loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by any guaranty agencies, lenders and schools that are determined to be authorized users of the data system.

Federal Direct Stafford Loans (Student)

Federal Direct Stafford Loans (Subsidized and Unsubsidized) are available to students. The interest rate on these loans between July 1, 2019 to June 30, 2020 will be 4.53% 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 Federal Direct Stafford Loan borrowers.

To apply for the Federal Direct Stafford Loan, students MUST complete the following:

  1. Complete Federal Direct Stafford Loan Entrance Counseling, online.  The student will need their FSA ID to complete the counseling session. This is the FSA ID used to complete the Free Application for Federal Student Aid (FAFSA).
  2. Complete the Federal Direct Stafford Loan Master Promissory Note online.  The student will need their FSA ID to complete the MPN. This is the FSA ID used to complete the Free Application for Federal Student Aid (FAFSA).

For those students leaving the college:

Students who are graduating, withdrawing, or not planning to return to the college and who received a Federal Direct or FFELP Stafford Loan, MUST also complete Exit Counseling.  Exit counseling should be completed online.  Students may use the NSLDS website at to view their individual Federal Direct (Perkins, Stafford, and PLUS) Loan data at any time using their FSA ID.

Federal Direct PLUS Loans (Parent)

Federal Direct PLUS Loans are for parents of undergraduate students who wish to borrow to help cover educational costs. A credit check is required for all Federal Direct PLUS Loans. The interest rate for 2019-2020 is currently 7.08% fixed and repayment begins 60 days after the final disbursement of the academic year.  Parents also have the option of deferring their 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 regarding deferment.

To Apply for the Federal Direct PLUS Loan, Parents MUST complete the following:

  1. The parent must complete a Federal Direct PLUS Loan application online.  For those who have no internet access or have trouble completing the online request can access a paper application online at under Forms and Downloads for the year of application.  Paper applications can be mailed or faxed to the Financial Aid Office.
  2. Parents must also complete the Federal Direct PLUS Loan Master Promissory Note (MPN).  The Parent applicant will need their FSA ID to complete the MPN. This is the FSA ID used to complete the Free Application for Federal Student Aid (FAFSA). To request a FSA ID, the parent can access
  3. Parents who are DENIED for a Federal Direct 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 a Direct PLUS Loan, additional Direct Unsubsidized Stafford Loan proceeds are available.  The maximum amount of Direct 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 Direct Unsubsidized Stafford Loan should notify the Financial Aid Office in writing.
  4. 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.

Federal Perkins Loan Exit Counseling:  For those students who are no longer enrolled:

Students who have received a Federal 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 online Perkins Loan Entrance/Exit Counseling and pass at 70% or better.  Students should review the Perkins Loan Entrance/Exit Counseling Fact Sheet 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.

Alternative/Private Loans

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.  It is the responsibility of the student to research potential lender partners as Ferrum College cannot make those recommendations to students.  Students should review and research several higher education lenders and review their loan products and services thoroughly before making a decision on a loan product. The Financial Aid Office will certify alternative loans of the student’s choice, however, no loan applications will be processed until all requested documents have been received by the Financial Aid Office.  Ferrum College does not assume any liability for alternative loan products, lender services or information contained on the lender websites.

See our Alternative/Private Loan information here!  Students should click on Borrowing Essentials to start the process.