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Student Loans

Federal Direct Loans

If you have not already done so, you must file the Free Application for Federal Student Aid (FAFSA) prior to borrowing a Federal Direct Loan. Your loan eligibility is listed on your Award Notification.

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 FAFSA (Free Application for Federal Student Aid). 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% will be charged for the 2015-2016 academic year.

Interest rates:  For subsidized loans disbursed after July 1, 2015, the interest rate is fixed at 4.66%.  For unsubsidized loans disbursed after July 1, 2015, the interest rate is also fixed at 4.66%.   

 Loan limits: First-year - $5,500*
                Sophomore - $6,500*
                Junior and Senior - $7,500*

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

Loan repayment begins six months after graduation or dropping 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 be disbursed to the student's Augustana account.  Please note that the Direct Loan will not appear as a credit on the student account/tuition bill until both the MPN & entrance counseling have been completed.

1) Federal Direct Loan Master Promissory Note (MPN)

2) Federal Direct Loan Entrance Counseling

1) 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, you will be redirected to the Direct Loans Master Promissory Note site to complete your MPN. You will need your federal PIN (personal identification number) to complete your MPN. Your PIN is also used to file your FAFSA. If you do not have a PIN, you should apply for one at before you attempt to complete your MPN. Please note: The Financial Assistance Office does not have access to your PIN.

The Financial Assistance Office will be notified electronically when you have finished your MPN.

2) Federal Direct Loan Entrance Counseling

First-time borrowers must also complete Federal Direct Loan Entrance Counseling. If you are a current Augustana student and have borrowed a Federal Direct Loan in the past, you do not need to complete Entrance Counseling again.

By selecting the link below, you will be redirected to the Direct Loan Servicing website to complete entrance counseling.  Please click on "Entrance Counseling" on the left-hand menu.  The Financial Assistance Office will be notified when you have finished.

3) Federal Direct Loan Exit Counseling

Students whose enrollment drops below half-time (4 credits) for any reason (i.e. graduation or withdrawal) and have borrowed through the Federal Stafford Loan program must conduct Exit Counseling through the Financial Assistance Office.  The purpose of Exit Counseling is to inform you about the repayment or deferment of your Federal Direct Loan(s).  The Exit Counseling booklet is available by contacting Financial Assistance.

Exit Counseling can also be completed online on the Federal Direct Loan Servicing website listed below.  Please click on "Exit Counseling" on the left-hand menu.  Financial Assistance will be notified when Exit Counseling has been completed.


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 variable and 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 we 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 we strongly encourage students to utilize 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 Direct Loan - $5,500 (first-year student); $6,500 (sophomore status); $7,500 (junior status and above); Independent student and dependent student 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 listed 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