Loan Programs

Student loans are a helpful tool in assisting families to meet the costs of education that are not covered by other financial aid. As all student loans need to be repaid, including interest, we encourage students to borrow wisely. Loan programs available to students are:

Federal Perkins Loan:
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 Stafford Loan:
A student is required to complete a FAFSA to determine eligibility for Stafford loans. No additional application is needed. To be eligible for Stafford loans, a student needs to be enrolled in at least 6 credits per semester for undergraduate study and at least 3 credits for graduate study.

There are two types of Stafford loans:

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

Dependent students are eligible to receive $5,500 as freshmen ($3,500 of which is Subsidized), $6,500 as sophomores ($4,500 of which is Subsidized) and $7,500 as juniors and seniors ($5,500 of which is Subsidized) in Stafford loans for the academic year. Dependent students can borrow up to a total of $31,000 ($23,000 of which is Subsidized) for undergraduate (post-baccalaureate and certificate) study.

Independent students are eligible to receive $9,500 as freshmen ($3,500 of which is Subsidized), $10,500 as sophomores ($4,500 of which is Subsidized) and $12,500 as juniors and seniors $5,500 of which is Subsidized) in Stafford loans for the academic year. Independent students can borrow up to a total of $57,500 ($23,000 of which is Subsidized) for undergraduate (post-baccalaureate and certificate) study.

Graduate students are eligible to receive up to $20,500 ($8,500 of which is Subsidized) for the academic year.

Steps to Apply: First time Stafford loan borrowers at Mount Mary College are required to complete a Master Promissory Note and complete entrance loan counseling. Students will also be required to select a lender for their Stafford Loan. All these steps related to a Stafford loan can be completed online.

Attention: Graduating Mount Mary College Students
Don't forget to complete your Stafford Exit Loan Counseling online.

Federal PLUS Loan:
Federal PLUS loans are supplemental loans to cover any additional costs of education beyond what Stafford loans may cover. PLUS loans are available for parents to borrow for their dependent students or for graduate students. (Click orange text to go online for information and to apply for a PLUS loan.)

Private Education Loan:
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 Stafford 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. To apply for a private loan, go online to compare information from different lenders, or you may contact the lending institution directly.