Educational Loan Programs
Think you’ll need some additional assistance paying for your education? There’s a solution for that.
Student loans are borrowed funds that you’ll pay back once you leave college. By filing a FAFSA (Free Application for Federal Student Aid) you may be eligible for federal student loans based on your academic program and year in school. Federal student loans typically have low interest rates and long terms.
Loans must be accepted in myLipscomb in order to be applied as an expected payment to the student bill. Learn more by checking out our aid application checklist.
Types of Loans
To be eligible, you must be enrolled or accepted for enrollment for at least six semester hours and must be working toward a degree or certificate. For three-hour terms in one semester, loans will not credit to a student’s account until total registration equals six hours. Stafford Loans will not pay until the student has completed both Entrance Counseling and the Master Promissory Note at studentloans.gov. Loans will not be credited to accounts until 30 days after classes begin or when a student begins the sixth credit hour, whichever comes last.
The Subsidized Stafford Loan is a federal loan available to undergraduate students only that must be repaid, but the interest is paid for by the government while the student is enrolled in school. The ability to receive the Subsidized Stafford Loan is based on calculated need as determined by the FAFSA. The current interest rate is 5.05% and is valid until June 30, 2019.
The Unsubsidized Stafford Loan is also a federal loan that must be repaid. If your FAFSA results determine that you are not eligible for the Subsidized Stafford Loan, the Unsubsidized Stafford Loan will be used to meet your borrowing eligibility as determined by the Federal Stafford Loan limits listed below. “Unsubsidized” means that interest will accrue while you are enrolled in school. You can choose to pay the interest while in school or defer the interest and have it added to the principal balance after finishing school. The current interest rate is 5.05% for undergraduate students and 6.6% for graduate students.
The Department of Education charges a 1.073% origination fee for all Stafford Loans.
Note: Independent students may borrow at increased limits under the Unsubsidized Stafford Loan program. Aggregate limits for dependent, independent, and graduate students vary. For more information, please contact the Financial Aid Office.
Learn more about Federal Stafford Loans, along with repayment options, capitalized interest and repayment calculations.
Loan Forgiveness Options for Teachers and Nurses
You may be eligible to have part or all of your Federal Stafford and/or Perkins Loans forgiven by the Department of Education if you meet certain criteria. Check these websites for more information, or contact the Department of Education.
There are two types of Direct PLUS Loans: Parent PLUS and Graduate PLUS. The Parent PLUS Loan is available to dependent undergraduate students. This loan will be credited toward the student's bill, but will be in a parent's name. The Graduate PLUS Loan is available to independent graduate students. Both loans require credit approval by the Department of Education, as well as a FAFSA submission. Apply at www.studentloans.gov.
Parent PLUS Loan
The Federal Parent PLUS loan is available for parents of undergraduate dependent students. It is a federal loan that must be repaid. The interest rate is determined by the federal government and is currently fixed at 7.6%.This rate is valid until June 30, 2019. Eligibility for this loan is based on credit history as determined by federal guidelines and the Department of Education. Half the loan will be added to the student's account in the fall and the other half will disburse during the spring semester. The maximum loan amount is not to exceed the student’s federal budget.
Repayment of a Parent PLUS loan typically begins within 60 days after the full disbursement of the loan. However, a parent can request deferment of the PLUS loan while the student is enrolled. Documentation and additional paperwork may be required by the Department of Education in order for the deferment to be granted. This documentation may be required each year of enrollment. Interest will continue to accrue during the deferment period.
Important Information Regarding The PLUS Loan Process
Parent PLUS loans will have a 4.6% origination fee charged when funds are disbursed to the school. This origination fee is already reflected on the student's myLipscomb account.
Parent PLUS loan credit decisions are only valid for 180 days.
PLUS loan approvals received will be divided evenly between fall and spring semesters. If the loan is for one term, the parent MUST contact the Financial Aid Office in writing to make the change.
If you previously completed a PLUS loan master promissory note with the Department of Education, you have NOT completed the PLUS loan process. You must complete the steps above in order to be credit approved. A Master Promissory Note does not mean a credit decision has been made.
Once the PLUS loan is approved, you will need to complete a PLUS loan Master Promissory Note in order for funds to be released to the school at the appropriate time.
Graduate PLUS Loan
The Federal Graduate PLUS loan is available for independent graduate students. It is a federal loan that must be repaid. The interest rate is determined by the federal government and is currently fixed at 7.6%. Eligibility for this loan is based on credit history as determined by federal guidelines and the Department of Education. The loan amount is not to exceed the student's cost of attendance, so the student will need to contact our office to find out how much loan money they are eligible for.
Half the loan will be added to the student's account in the fall and the other half will disburse during the spring semester. The maximum loan amount is not to exceed the student’s federal budget. Prior to disbursement, the Department of Education withholds 4.6% from the loan amount to cover loan origination fees.
In order for the Grad PLUS Loan to disburse, you must complete a Master Promissory Note at studentloans.gov.
Private loans should be considered as a last resort when financing your college education. We strongly encourage you to borrow from the Federal Student Loan program before considering private loans. Additionally, graduate students are encouraged to apply for a Graduate PLUS Loan before applying for private loans. Generally, you will receive a better interest rate on Federal Student Loans than with private loans. However, if you need additional funding beyond your Federal Student Loan eligibility, private loans may help you cover unmet expenses.
Private loans are made by banks and other financial institutions and are subject to their terms. Eligibility for these loans requires a credit check, and students are often required to have a cosigner to qualify.
Lipscomb University does not endorse or recommend any specific private loan product. In determining which private loan is best for your needs, we recommend you research and compare loan interest rates, fees, repayment options, and eligibility requirements. If your private loan requires a self-certification form, please come by our office and we will be happy to assist you with its completion.