Direct Loan Program
To complete your Entrance Counseling and your Master Promissory Note go to: www.studentloans.gov.
Your Federal student Loans: Learn the basics and manage your debt
Federal Direct Stafford Loans
Student enrolled in post-secondary program on at least a half-time basis. School will determine borrower status as either a dependent or independent student.
Interest Rates for July 1, 2014 to June 30, 2015:
- Subsidized Stafford Loan has a fixed rate of 4.666%
- Unsubsidized Stafford Loan has a fixed rate of 4.66%
1st year $3500/$2000
2nd year $4500/$2000
As an independent student you may be eligible to borrow up to an additional $4000.00 in an unsubsidized loan.
Subsidized - Federal government pays interest while student is enrolled at least half-time.
*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
Unsubsidized - Borrower is responsible for all interest costs. Interest may be paid quarterly, annually or capitalized (applied to principal) during period of enrollment.
Payments begin 6 months after student withdraws, graduates or drops below half-time status. Minimum monthly payment is $50.00. The loan must be repaid within 10 years. Extended, graduated, or income-sensitive repayment options are available.
If you intend to apply for a Federal Stafford Loan, you need to:
- SUBMIT A Federal Loan Authorization Form (page 3 of your Award Letter). Or you can electronically accept your loan thru the e-services link of our web page.
- COMPLETE AN Entrance Counseling Session. All students who have not had a Federal Direct Loan since 2011 at Ridgewater College are required to complete an on-line Entrance Loan Counseling Session. Your loan application WILL NOT BE PROCESSED and you will be unable to charge against your student loan until you fulfill this requirement.
- COMPLETE A Master Promissory Note (MPN)*.
- Exit Counseling: When you are done with your education at Ridgewater College, you will also have to complete the Federal Loan Requirement of exit counseling.
Federal PLUS Loan
Parent of a dependent student enrolled in post-secondary program on at least a half-time basis. School determines PLUS Loan eligibility. Borrower credit review required.
Loans disbursed from July 1st,
2014 to June 30th, 2015 have a fixed rate of 7.21 %
Loans processed after July 1st,
2010 to June 30, 2013 are a fixed rate of 7.9%
No annual maximum. Parent may borrow up to full cost of students education less any other financial aid the student receives.
Borrower is responsible for all interest costs.
Payments begin 30 to 60 days after full loan disbursement. (An In-School Deferment can be requested each year while the student is still attending, up to a maximum of 4 years.) Minimum monthly payment is $50.00. Loan must be repaid in 10 years.
You will need to know your FAFSA PIN number to apply.
To apply please go to www.studentloans.gov and after you sign in with your PIN, click on the "Request a PLUS Loan" link.
Federal Perkins Loan
Perkins Loan Information
Ridgewater College recognizes that not all students will be able to meet the financial requirements of paying for an education on their own, even with the assistance of traditional financial aid resources. We cannot recommend a loan program or lender for you if you need to borrow additional funding, however, we can provide you with the information you will need to borrow wisely.
Each borrower's wants and needs are unique. You should evaluate each loan program to determine the best loan for you and your educational plans.
DO NOT BORROW MORE THAN YOU CAN AFFORD TO REPAY!
Tips on Private Loans
Do your homework before submitting an application. The interest rates are usually determined by the applicants and/or co-signers credit history or score. Be sure you ask what your interest rate is going to be, and if there are any upfront fees or fees added later when repayment starts. Be sure you also know the consequences of withdrawing from school early, making a late interest payment or making a late principal payment once you start repayment.
You should know at least the following about a loan program before completing an application:
- Interest rate and how it is calculated
- The amount of application or origination fees (upfront fees or repayment fees)
- When payments are required (interest and principal)
- If a cosigner is required
If you feel you need additional loan money,
please go to:
Here are a couple of good links:
FinAid: Private Student Loans
U.S. Department of Education: Student Aid on the Web
Private Student loans
To check the current interest rates according to the Wall Street Journal, click here:
Wall Street Journal's Prime Rate Bank Survey
LIBOR: London Interbank Offered Rate
Information to Help You Consolidate Your Federal Student Loans
There are lots of reasons why borrowers should consolidate their student loans. Unfortunately, the process of consolidating is sometimes more complicated than the decision to consolidate. As a result, some borrowers consolidate without taking full advantage of the benefits of consolidation, while others decide not to consolidate at all.
Information on Consolidation
President Obama's Student Loan Relief Plan
US Department of Education - Borrower Services
NSLDS-National Student Loan Data System- Go here to find all of your Federal Loans.
FYI - YOU CAN NOT INCLUDE A MINNESOTA SELF LOAN OR ANY PRIVATE (ALTERNATIVE) LOANS IN THE CONSOLIDATION PROCESS.