Student loans help families meet the costs of education that are not covered by other financial aid. Student loans need to be repaid, including interest. We encourage students to borrow wisely. Maximum loan amounts are subject to change each year.

Federal Perkins Loans:
Perkins loans are awarded to students with exceptional financial need. A student may receive up to $5,500 annually and a maximum of $27,500 for undergraduate study.

Federal Direct Loans:
A student is required to complete a FAFSA to determine eligibility for Federal Direct loans. No additional application is needed. To be eligible for Federal Direct loans, a student needs to be enrolled in at least six undergraduate credits or three graduate credits per semester.

There are two types of Federal Direct loans:

• Subsidized Loans are awarded based on financial need. The Federal government pays interest while the student is enrolled at least half time.
  
• Unsubsidized Loans are awarded regardless of financial need. Interest accrues on this loan while the student is attending school.

Applying for Federal Direct Loans: First time Federal Direct loan borrowers at Mount Mary College are required to complete a Master Promissory Note and complete entrance loan counseling. All these steps related to a Federal Direct loan can be completed online.

Dependent students can borrow up to a total of $31,000 ($23,000 of which is Subsidized) for undergraduate (post-baccalaureate and certificate) study. Dependent students are eligible to receive the following for the academic year -

• $5,500 as freshmen ($3,500 of which is Subsidized)
• $6,500 as sophomores ($4,500 of which is Subsidized)
• $7,500 as juniors and seniors ($5,500 of which is Subsidized)

Independent students can borrow up to a total of $57,500 ($23,000 of which is Subsidized) for undergraduate (post-baccalaureate and certificate) study. Independent students are eligible to receive the following for the academic year -

• $9,500 as freshmen ($3,500 of which is Subsidized)
• $10,500 as sophomores ($4,500 of which is Subsidized)
• $12,500 as juniors and seniors ($5,500 of which is Subsidized)

Graduate students are eligible to receive up to $20,500 in loans for the academic year.

Federal PLUS Loans:
Federal PLUS loans are supplemental loans to cover any additional costs of education beyond what Federal Direct loans may cover. PLUS loans are available for parents to borrow for their dependent students. To request the Parent PLUS loan, parents must complete a PLUS Request application along with a Parent PLUS Master Promissory Note (MPN) online at www.studentloans.gov. Parents are required to log-in using their FAFSA pin number to complete this process.

Graduate PLUS loans are low, fixed interest rate loans guaranteed by the U.S. Government. The Graduate PLUS loan is a non-need credit based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee. Students must complete the Graduate PLUS Loan Request along with the Graduate PLUS Master Promissory Note (MPN) online at www.studentloans.gov.

Private Education Loans:
Private student loans are an option for students who have additional expenses beyond their financial aid award. Private loans are borrowed from banks and other private lending institutions; they are not part of the federal government guaranteed loan programs. Private loans will generally cost more and charge a higher rate of interest than Federal Direct or PLUS loans. We encourage all students to speak to a Financial Aid Counselor before applying for a private loan to determine if all other available aid has been applied.

• See more information on private loans.

Loan Resources

National Student Loan Data System: The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

Entrance Counseling: Prior to a student’s first Federal Direct Loan disbursement, an institution must provide comprehensive information on the terms and conditions of the loan and of the borrower’s responsibilities. 

Exit Counseling: Before a student withdraws, graduates, or drops below half-time attendance (regardless if transferring to another school), regulations require that students complete an exit counseling session for Federal Stafford Loans (subsidized or unsubsidized) and Direct Subsidized and Unsubsidized Loans. The counseling session provides information about how to manage student loans after college.

Loan Repayment Information: Student Aid on the Web provides students with information regarding Federal Student Loan repayment.  Students can access information about Federal Student Loan repayment plans, loan forgiveness programs, interest rates, and can access a Federal Student Loan repayment calculator.

<back to top