Loans

A loan is money you borrow and must pay back with interest. When you complete the Free Application for Federal Student Aid (FAFSA®), you may be offered loans on your financial aid package.

Student loans can be offered from the federal government, private sources, or other organizations.

Federal Direct Subsidized & Unsubsidized Loans

Upon completing the FAFSA®, you may be offered a Direct Subsidized loan and/or a Direct Unsubsidized Loan. Both of these loans offer benefits such as:

  • Fixed interest rates
  • You do not need a cosigner
  • You do not have to begin repayment until after you leave college or drop below half- time

During periods when you are not required to make payments, your interest will accrue and may capitalize. This capitalization means that your interest will be added to the principal amount of your loan. You can always choose to pay that interest that accrues even during periods when you are not required to make payments.

Visit studentaid.gov to view current interest rates.

Funds for Direct Loans will be applied directly to your school account to help pay for your school charges. Any overage from a loan will be returned to you.

Loan Requirements

If you are receiving a Direct Loan for the first time, you must complete the following requirements:

Students who are eligible for a federal direct loan will be required to accept or deny all or a portion of the loan by visiting Self-Service - My Awards.

Direct Subsidized Loan

A Direct Subsidized Loan is based on financial need as determined by the FAFSA®. This loan is available to undergraduate students.

A benefit of this loan is that the U.S. Department of Education pays the interest on this loan:

  • While you are enrolled in school at least half-time (6 credit hours)
  • During the first six months after you leave school (this is considered a grace period)
  • During a period of deferment

Direct Unsubsidized Loan

A Direct Unsubsidized Loan is available to undergraduate and graduate students. There is no requirement to demonstrate financial need to receive this loan.

Interest on this loan will accrue while you are in school and you will be responsible for paying this interest.

Direct PLUS Loans

A Direct PLUS Loan is available to eligible parents and graduate or professional students. This loan helps pay for education expenses not covered by other financial aid.

The maximum PLUS loan amount a parent or student can borrow is the cost of attendance minus any other financial assistance received.

To receive the loan, you must complete:

Loan Fees

Direct PLUS loans have a fixed interest rate. When the loan disburses, a loan fee is applied. This loan fee is a percentage of the loan and is deducted from each loan disbursement. Current loan fees can be found at studentaid.gov.

Credit Check

A credit check is completed for all Direct PLUS Loan applicants to ensure there is no adverse credit history. If you are determined as having an adverse credit history, you may still qualify for a PLUS loan if you:

  • Obtain an endorser – similar to a cosigner as this is someone who does not have an adverse credit and agrees to pay back your Direct PLUS Loan if you don’t.
  • File an appeal – you have the right to appeal the decision if you think there was an error, important information is missing, or the data used is out of date.

If you receive a PLUS loan with an endorser or an appeal, you must complete:

Parent PLUS Loan

To be eligible for a parent PLUS loan, your student must be a dependent undergraduate student enrolled at least half-time (6 credit hours) and you must be:

  • the biological or adoptive parent
  • or the step-parent whose financial information has been reported on the FAFSA

A FAFSA must be completed before a parent can receive a PLUS loan. Once completed, visit Parent PLUS Loan to apply for the loan.

The loan application will allow you to select either the student or borrower (parent) to receive any credit balance. You can also request deferment of repayment while the student is in school for up to 6 months after they leave school.

Before a Parent PLUS Loan can be added to a student’s account, the parent borrower must complete the PLUS Loan Acceptance Form.

Additional Unsubsidized Loan Eligibility

If you were determined as having an adverse credit history and are unable to get a PLUS loan, your student may be eligible for additional unsubsidized loan funds:

  • $4,000 for freshman and sophomores
  • $5,000 for juniors and seniors

The student must accept the additional unsubsidized loan funds before they would be applied to their account.

Grad PLUS Loan

To be eligible for a grad PLUS loan, you must:

  • Complete the FAFSA
  • be a graduate or professional student enrolled at least half-time in a program leading to a graduate or professional degree or certificate
  • not have an adverse credit history

Visit Grad PLUS Loan to complete the application.

You are not required to make payments while in school and enrolled at least half-time. However, interest on this loan will accrue while you are in school and you will be responsible for paying this interest.

Alternative Loans

Non-federal loans are an option for students whose parent(s) cannot or choose not to borrow a PLUS loan. A creditworthy co-signer is usually required unless the student has an acceptable credit history. While many private loan options are deferrable, interest will accrue while the student is in school.

ELMSelect

A resource students can use to help find a private loan lender is ELMSelect. The lenders and options presented in ELMSelect have been used by at least one student at Marietta College within the past 5 years. You are free to choose any lender that best fits your needs, including those not listed.

Loan approvals will be sent directly to Marietta College and certified through the Office of Student Financial Services. If you select a lender not listed on ELMSelect, please contact our office.

While we understand that you may have questions, we believe you have the right and ability to seek the education loan provider of your choice. ELMSelect allows you to compare several lenders, containing the most up-to-date rates and benefits.

Loan Repayment

Once you leave school or fall below half-time, your federal student loans go into repayment. However, with a subsidized, unsubsidized or grad PLUS loan, you have a six- month grace period after graduation before you are required to begin making regular payments.

Loan Servicer

Once you begin repayment, your loan servicer will provide you with a loan repayment schedule when your first payment is due.

If you are unsure of who your federal student loan servicer is, visit Who’s My Student Loan Servicer?

Repayment Plans

You can choose a repayment option based off your monthly income or you can choose to have a fixed monthly payment over a set repayment period.

To compare your repayment options, visit Federal Student Aid.

If you do not select a loan repayment option, your loan servicer will place you in a Standard Repayment Plan with a fixed monthly payment over a 10-year period.