Anderson University

Financial Aid

Family Guide to College and Financial Planning

Family Guide to College and Financial Planning

  AU >Financial Aid

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Loans

Often part of a financial aid package, loans provide students with an opportunity to invest in their future, typically at interest rates lower than those on the commercial market.  Students are reminded that borrowing money for University is a serious financial obligation, that interest is generally charged for use of funds, and that when you borrow money it must eventually be repaid. Think about this commitment carefully when taking out a loan, and consider how much you reasonably can afford to repay.

Direct Lending

On March 25, 2010, both the House and the Senate passed H.R. 4872, the Health Care and Education Affordability Reconciliation Act of 2010, which includes major reforms to health care and student financial aid.

This legislation eliminates new lending under the Federal Family Education Loan Program (FFELP) beginning July 1, 2010, and provides the Department of Education with the sole responsibility of providing student loans through the Direct Loan program.

Loan limits and eligibility requirements for the Direct Loan program are the same as the FFELP loan program.   For more information, see the enclosed brochure. 

All students will now be required to secure student loan funds from the Direct Loan program by going to www.studentloans.gov, completing the Entrance Counseling, and signing the Master Promissory Note (MPN). 

 


Steps to Applying for Student Loans

(See options for loans below)

 

Step 1:  Complete the Free Application for Federal Student Aid (FAFSA) being sure to list Anderson University (FAFSA Code:  003418).

Step 2 IMPORTANT:  Complete the online entrance counseling at www.studentloans.gov. Please complete this step before going to Step 3.  Your loans cannot be processed if you do not complete the entrance counseling.

Step 3:  Go to www.studentloans.gov and complete the Master Promissory Note (MPN).  The MPN is a legally binding agreement to repay your loan to the Department of Education.  In most cases, one MPN can be used for loans that you receive over several years of study.


Student Loan Options

FIRST Option

Direct Loans – all students are eligible to receive loan funds through the Direct Loan program at the following levels as long as the student is in school at least half time (6 hours).
     Grade Level 1 – (1 – 29 earned hours) - $5500 ($2000 must be unsubsidized funds)
     Grade Level 2 – (30 – 59 earned hours) - $6500 ($2000 must be unsubsidized funds)
     Grade Level 3 – (60 – 89 earned hours) - $7500 ($2000 must be unsubsidized funds)
     Grade Level 4 – (90 and above earned hours) - $7500 ($2000 must be unsubsidized funds)

Direct Loans can be either Subsidized which means the interest will be paid by the Federal Government as long as the student is enrolled at least half-time.  Subsidized loan eligibility is determined by the Free Application of Federal Student Aid (FAFSA) and other aid that the student is receiving.  If the student is not eligible for subsidized student loan funds, they can still receive loan funds at the above level.  However, the funds will be Unsubsidized which means interest will be accruing while the student is in school. 

Students whose parents have been denied a Parent Loan for Undergraduate Students (PLUS) can receive Additional Unsubsidized Stafford Loan funds at the following level.  Parents must apply each year for the PLUS before students can receive the additional unsubsidized funds.
     Grade Level 1 & 2 – Additional $4000
     Grade Level 3 & 4 – Additional $5000

Direct Loans have a fixed interest rate and aggregate loan limits. These will be reflected on the website. 

Students must apply for Direct Loans, complete the Entrance Counseling, and sign the Master Promissory Note (MPN) at www.studentloans.gov before loans can be processed. 

Upperclassmen or previous borrowers will now be required to go to www.studentloans.gov to complete Entrance Counseling and sign a new Master Promissory Note (MPN).

Direct Loan Funds Are Divided Equally Between Fall & Spring Semester

Note:  If a student is enrolled in courses that do not count toward his/her degree, they (the courses) cannot be used to count towards the enrollment status unless the courses are noncredit or remedial courses.  This means a student cannot be awarded and receive aid for classes that do not count towards his/her degree or certificate.   

SECOND Option  

 

Direct PLUS Loans – Direct PLUS Loans are for the parents of dependent students and for graduate/professional students.  Interest accrues during enrollment.  Parents can apply and complete entrance counseling at www.studentloans.gov

Eligibility Requirements for Direct PLUS Loans

  • You must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom you are borrowing.
  • Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program.  Generally, your child is considered dependent if he or she is under 24 years of age, has no dependents, and is not married a veteran, a graduate or professional student, or a ward of the court.
  • You cannot have an adverse credit history (a credit check will be completed).
  • In addition, you and your child must be U. S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid Programs.

Direct PLUS Loan Funds Are Divided Equally Between Fall & Spring Semester

THIRD Option

Private Student Loans - Private Education Loans, also known as Alternative Education Loans, should be a last resource for many to help bridge the gap between the actual cost of your education and the limited amount of financial aid from other sources.

Anderson University’s Office of Financial Aid Planning will attempt to work with any lender and servicing agency to process a private/alternative education loan for our students. Please be advised that private loans often times have higher interest rates than federal loans and are credit-based. Anderson University recommends that you look at an alternative loan only when all other options have been exhausted, including federal loans. The terms and conditions of alternative loans vary from lender to lender and we encourage all borrowers to review and evaluate each program.

To ensure timely processing of your loan, please monitor your application once submitted. Each lender’s process may vary, but each step must be completed before a disbursement is made to Anderson University.
The link below will allow you to research and compare alternative loan products provided by various lenders. We strongly suggest looking at all of your options before making a final decision.

FastChoice – A product of Great Lakes Educational Loan Services, Inc. has a private/alternative education loan selection tool that provides basic information on alternative loans and detailed listings of the various interest rates, borrower benefits, fees, and repayment options. You may choose to use this tool to help educate yourself before making a decision or choose to go directly to a lender of your choice to apply.

Exit Counseling

To complete your exit counseling, click here.  Select Exit Counseling then Start.


 

FAFSA Federal School Code: 003418

Financial Aid Planning Office
Anderson University
316 Boulevard
Box 1142
Anderson, SC 29621
(864) 231-2070
finaid@andersonuniversity.edu



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