Loans, unlike grants and scholarships, are borrowed money that must be repaid, with interest. Taking loans is a huge responsibility, and it is important that you understand the conditions, as well as your obligations as a borrower.
Loans fall into two categories: federal loans and private loans. Federal loans should always be the first option to consider when borrowing money to finance an education. You must complete a Free Application for Federal Student Aid (FAFSA) to be eligible for a federal loan.
Federal Student Loans
Endicott College participates in the Federal Direct Loan Program. In this program, the federal government acts as the lender. There are two types of Federal loans:
Federal Direct Loan Program (Subsidized and Unsubsidized)
The Federal Direct Stafford Loan provides federally insured funds of up to a maximum of $3,500 for first year students, $4,500 for second year students, and $5,500 for third and fourth year students. The current rates for the undergraduate Federal Direct Stafford loans are 5.05% for the subsidized loans and 5.05% for all unsubsidized loans. There is also a 1.062% origination fee deducted from each loan disbursement. All undergraduate students are eligible to borrow up to $2,000 in an unsubsidized Federal Direct Stafford Loan in addition to the annual loan limits listed above.
- In order to be eligible for Direct Stafford loans, students must complete the FAFSA.
- After being awarded financial aid, all new borrowers must complete the Federal Direct Stafford Loan Entrance Counseling and the Master Promissory Note as part of the Federal Direct Stafford Loan process. Please visit Entrance Counseling and Master Promissory Note for more information.
Federal Direct Plus Loans for Parents of Dependent Undergraduate Students
Loan funds are available to credit-worthy parents of dependent students. These loans are not based upon financial need and parents may borrow up to the cost of attendance minus financial aid annually for each dependent student enrolled in an undergraduate school. The interest rate is fixed at 7.6% and repayment for PLUS loans may be deferred until after the student ceases to be enrolled at least half time. There is also a 4.248% origination fee deducted from each loan disbursement.
- To apply for a 2019-20 Federal Direct PLUS Loan please visit www.studentloans.gov, login, and click "Request a PLUS Loan."
- All new borrowers must also complete the Master Promissory Note as part of the Federal Direct Plus Loan process. Please visit Plus Loan Master Promissory Note for more information
Note: We are required to inform the student or parent that the loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible to guaranty agencies, lenders, and schools determined to be authorized users of the data system.
Private Student Loans
An alternative to the federal student loan programs are private loans made by a lender such as a bank or credit union. If you are considering a private loan, be sure to examine the terms and conditions carefully to determine if it meets your needs.
Private loans are an option for students and families to assist them in paying for educational expenses that are not covered by other types of financial aid. It is strongly recommended that you apply for federal aid first, as federal loan programs often have more favorable terms than private loans. While we want to make information on loan borrowing available to all eligible participants, we by no means want to advocate unnecessary borrowing. We recommend a student borrow conservatively and only what they need.
Finding a Lender
To help our students and their parents navigate the increasingly complex private loan landscape, Endicott has partnered with a company called Elm Select. To review a list of commonly used private loan options that the College has evaluated and found to be reputable, please visit Elm Select. However, you are welcome to borrow from any lender you choose without penalty whether or not that lender is listed on the website. Students who borrow through a private loan will be required to complete an application and a Self-Certification Form. Both of these forms will be provided by the selected loan provider. You will need the College's Cost of Attendance to complete the Self-Certification Form.
We will be happy to answer questions or provide information as you identify the loan options that will best suit your family's needs.