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Loans

Federal Direct Loans

The Federal Direct Loan is available to undergraduate students to assist with paying college costs. The type of Federal Direct Loan a student is awarded is based on results of the Free Application for Federal Student Aid (FAFSA).

Students must file the FAFSA prior to making a Federal Direct Loan. A student's loan eligibility is listed on his or her Award Notification from Augustana.

If subsidized, the loan is based on need, and interest is paid by the federal government while the student is enrolled at least half-time.

If unsubsidized, the student is responsible for the interest accumulated on the loan while still in school.

Repayment of the principal is deferred for either loan type. A federal origination fee of 1.073 percent will be charged for the 2015-2016 academic year.

For subsidized and unsubsidized loans disbursed after July 1, 2015, the interest rate is fixed at 4.66 percent.

Loan limits

First-year students - $5,500*
Sophomores - $6,500*
Juniors and seniors - $7,500*

* A minimum of $2,000 will be Unsubsidized Stafford Loan eligibility.

Loan repayment begins six months after graduation or when a student drops below half-time status. Loan eligibility will be provided on the student's Award Notification each year.

First-time Federal Direct Loan borrowers must complete the following items before the loan proceeds can bedisbursed to the student's Augustana account. (Note: The Direct Loan will not appear as a credit on the student account/tuition bill until both the Master Promissory Note (MPN) and entrance counseling have been completed.)

Federal Direct Loan Master Promissory Note (MPN)

All students wishing to borrow the Federal Direct Loan for 2015-2016 must complete a Master Promissory Note (MPN). By selecting the link below, students will be redirected to the Federal Direct Loans Master Promissory Note site to complete the MPN.

Students will need their federal PIN (personal identification number) to complete the MPN. (The PIN also is used to file the FAFSA).

If a student does not have a PIN, he or she should apply for one at www.pin.ed.gov before attempting to complete the MPN. Note: The Office of Financial Assistance does not have access to PINs.

The Office of Financial Assistance will be notified electronically when a student has have finished his or her MPN.

Complete a Direct Loan Master Promissory Note

Federal Direct Loan Entrance Counseling

First-time borrowers also must complete Federal Direct Loan Entrance Counseling.

By selecting the link below, you will be redirected to the Direct Loan Servicing website to complete entrance counseling. The Office of Financial Assistance will be notified when you have finished.

Complete Direct Loan Entrance Counseling

Time Limitation on Direct Subsidized Loan Eligibility

Alternative/private loans for students

Alternative/private loans are available to students who meet credit criteria and, in most cases, have a credit-worthy co-signer. Interest rates are generally variableand are based on a financial benchmark such as Prime or LIBOR plus a margin that is usually based on the creditworthiness of the borrower and cosigner.

Federal consumer disclosure regulations mandates that the college disclose maximum amounts of federal grant and loan assistance that are available. Maximum eligibility for federal financial assistance is based on the results of the FAFSA and is outlined on the entering or returning student's award notification letter. Federal financial aid has better terms and conditions than alternative/private student loans and the college strongly encourages students to use that assistance first.

The following is a list of maximum awards in each federal grant and loan program:

Pell Grant — $5,730

SEOG — $4,000 (Award amounts are dependent on federal funding)

TEACH Grant — $4,000

Federal DirectLoan — $5,500 (first-year student); $6,500 (sophomore status); $7,500 (junior status and above). Independent students and dependent students whose parent is denied PLUS can receive an additional $4,000 (first-year and sophomore status) or $5,000 (junior status and above)

Perkins Loan — $5,500 (Award amounts are dependent on federal funding with a typical Augustana award being $1,000 to $2,000.)

PLUS Loan (Parent Loan for Undergraduate Students) — A credit-based loan for parent borrowers with a maximum determined by the difference between Augustana's cost of attendance and the student's financial aid award.

Augustana does not promote, recommend or endorse any lender on the linked list below. The college does not have a preferred lender list and has not entered into a preferred lender arrangement with any lender. Augustana College will process private/alternative loans through any lender of your choice; you are not limited to the lenders on this list.

Lenders Used by Augustana students over the past three years

Private Education Loan Self-Certification Form

Augustana College Financial Assistance Office Code of Conduct