Loans
Also see:
Loan Comparison Chart
Stafford & Plus Loan Comparison Chart
Repayment Chart
Entrance/Exit Loan Counseling
 PLEASE NOTE: In March 2010, Congress made a major change to the federal student loan program in order to provide students and parents with a more reliable source of educational loan funding with a fixed interest rate. The U.S. Department of Education, NOT private banks, will now be the source of funding for student and parent borrowers with federal student loans (Stafford, Parent PLUS, Graduate PLUS). This change does NOT affect the amount of your loans or financial aid award. It affects only the source of the funding.If you have questions, contact your SFS counselor or visit http://www.direct.ed.gov/.
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A. Federal Perkins Loan
Federal Perkins Loans are need-based and must be repaid. This low interest (5%) loan requires you to begin repayment 9 months after you cease half-time enrollment status. No interest or repayment is required while the student is enrolled in at least half-time enrollment status. After signing a Federal Perkins Loan Master Promissory Note, one-half of your annual Federal Perkins Loan award will be credited to your student account each semester.
All new Federal Perkins Loan borrowers must complete Federal Perkins Entrance Loan Counseling. Once Milligan receives your signed award letter and electronic notification that you have completed your online Perkins Entrance Loan Counseling, the college will send you the Perkins Master Promissory Note (MPN) for signing. In order to disburse your Perkins loan funds, the signed MPN must be received by Student Financial Services.
B. Federal Direct Stafford Loans: Subsidized and Unsubsidized
Federal Direct Subsidized and Unsubsidized Stafford Loans must be repaid. The Subsidized loans are need-based and the government pays the interest while the student is in college. The Unsubsidized loan is available to all students and the interest accrues while the student is in college. These loans require Entrance Loan Counseling for all first time borrowers and Exit Loan Counseling for all borrowers who are graduating, not returning to Milligan, or have dropped below at least a half-time enrollment status.
Applying:
After you have accepted your loan awards by signing and returning your Award Letter, you will need to complete your Master Promissory Note. All students accepting a Direct Stafford Loan award must complete a MPN before receiving their first Stafford Loan at Milligan College.
Federal Direct Stafford Loan funds will not be disbursed unless a valid MPN is on file and Milligan College has originated your loan with the Department of Education. Even if your package includes both types of Stafford (sub and unsub) loans, only one MPN is necessary. It is valid for 10 years.
C. Federal Direct Parent Loan for Undergraduate Students (PLUS) and Graduate Students
A Federal Direct PLUS Loan is a credit-based loan for parents of undergraduate students and for graduate students. It must be repaid. Graduate students may benefit from using the PLUS loan as opposed to an alternative loan because students may not qualify for an alternative loan based on credit history, or the interest rate may be higher than the 7.9% Direct PLUS Loan interest rate. The Graduate PLUS Loan requires Entrance Counseling for all first-time borrowers and Exit Loan Counseling for all borrowers who are graduating, not returning to Milligan, or who have dropped below at least half-time enrollment status. If you need assistance in determining the amount to borrow, please contact Student Financial Services.
Applying:
If you are a parent borrower, you may apply for the Federal Direct PLUS Loan. The student must file the FAFSA, and the borrower must complete and submit a Federal Direct PLUS Loan Request Form to Student Financial Services.
In addition, you must complete the PLUS Loan Request Process and Master Promissory Note (MPN) for the Federal PLUS Loan. The Department of Education will notify the Student Financial Services Office that you have completed the PLUS Request Process and the MPN. The acknowledgement that the PLUS Loan has been approved must be received no later than Registration day.
D. Alternative Loans
Alternative Loans supplement federal and institutional financial assistance. The interest rate is based on the student’s credit rating or the credit rating of the co-borrower. A credit worthy co-borrower is recommended to obtain the best rate of interest.
Applying:
To apply, you must submit an Alternative Loan Request Form to Student Financial Services, and complete the application and other necessary paperwork for your chosen lender.
A listing of lenders that Milligan College students and parents have utilized over the last 3 years is listed here. If your lender is not listed, please contact the Student Financial Services Office for further instructions regarding the loan process. The Student Financial Services Office will process your loan quickly and accurately regardless of the lender you choose.
Entrance Loan Counseling
If you are a new borrower or transfer student and your financial aid package includes a Federal Perkins Loan, Federal Stafford Loan, or NEW Graduate PLUS Loan, you are required to complete Entrance Loan Counseling before funds can be disbursed. The session allows you to review loan information and answer questions which demonstrate that you understand your rights and responsibilities as a borrower. At the end of the interview, you can print your confirmation that you have completed the interview for Milligan College.
There are separate Entrance Loan Counseling Interviews for Federal Stafford, Perkins and Graduate PLUS Loans. Since each loan has different requirements, you must complete the session associated with your loan award, or both sessions if your financial aid package includes both.
Exit Loan Counseling
All student borrowers who have graduated, withdrawn or dropped below half-time enrollment status are asked to complete an online Exit Counseling Interview. There are separate Exit Loan Counseling Interviews for Federal Stafford, Perkins and Graduate PLUS Loans. You must complete each session separately if you have all types of loans. The interview allows you to review loan information and answer questions which demonstrate that you understand your rights and responsibilities as a borrower. At the end of the interview, you can print your confirmation that you have completed the interview for Milligan College.
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