Federal Direct Loans For 2012-2013

The Center for Student Services encourages students to explore various grants and scholarship opportunities and to evaluate loan options carefully. Borrow only what is really needed and remember that loans must be repaid.


To Borrow or Not To Borrow
By accepting a Federal Direct Student Loan, you incur a binding obligation to repay the loan in full, including interest and any applicable fees. It is essential that when you plan for educational costs, you also plan for future repayment of any amounts you have borrowed. When making the decision whether or not to accept a loan, you should be aware of all the requirements, interest rates, repayment options, schedules and deferment options.

Some pointers on how to borrow wisely:

• Look into local resources of financial aid from community organizations and civic groups.
• Repay your debt as soon as possible. The longer you owe, the more you owe.
• To help secure your financial future, monitor the status of your loans and your repayment history and repay your loan on time.

• 3.4% for subsidied loans first disbursed between 7/1/12 – 6/30/13

The rate for loans disbursed prior to July 1, 2006 is variable (subject to change each year) but does not exceed 8.25%. Variable interest rates are adjusted each year on July 1. You will be notified of variable interest rate changes throughout the life of your loan. If you have subsidized loans, you will not be charged interest while enrolled in school at least half time.

Repayment begins six months after graduation or after a student drops below halftime status.  Subsidized loans first disbursed on or after July 1, 2012 and before July 1, 2014, will not have the interest subsidy provided during the 6 month grace period.  Students receiving a subsidized loan during this timeframe will be responsible for the interest that accrues on the loan during the grace period.  If a student does not pay the interest accrued, the interest will be added (capitalized) to the principal amount of their loan when the grace period ends. 

If you have unsubsidized loans, you'll be charged interest from the day the loan is disbursed until it is paid in full, including during in-school, grace, and deferment periods. You can pay interest during these periods or it can be capitalized.

What is the difference between a subsidized and an unsubsidized loan?

For the Federal Direct Subsidized Loan, you will not be charged interest while you are enrolled at least half-time (including leaves of absence). The interest rate for Federal Direct Subsidized Loans disbursed on or after July 1, 2012 will be 3.4%.

For the Federal Direct Unsubsidized Loan, the government will not pay interest while a student is in school as it does for the subsidized loan. Interest accrues and must be paid or capitalized during periods of enrollment in school and/or deferment. The interest rate for Federal Direct Unsubsidized Loans for all students disbursed on or after July 1, 2011 will be 6.8%.

Are there any federal loans available to parents?
The Federal Direct PLUS Loan (parent loan for undergraduate students) is a loan from the U.S. Department of Education for parents of undergraduate students who complete a FAFSA. Your parent(s) should evaluate whether or not there is a need to borrow in order to assist in the financing of your education. The maximum amount your parent will be eligible to borrow for the 2010-2011 school year will be indicated on your MMC award letter. Parents often elect to limit the amount which they borrow to the difference between annual direct costs and other financial aid the student has received. Direct costs are those paid directly to MMC including tuition, fees, and room and board for resident students. Indirect costs consist of all other expenses that relate to attendance at MMC. The interest rate on PLUS loans is 7.9%.

What fees, if any, are associated with these loans?
For Direct Student Loans, an origination fee of 1.0% of the total loan will be assessed. For PLUS loans, an origination fee of 4.0% will be assessed. The net disbursement will reflect these fees; therefore, the amount credited to the student's account will be less than the loan amount. This fee is determined by the U.S. Department of Education.

How do I apply for a Federal Loan? What You Need

• Your Federal PIN
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Step 1: All students who wish to borrow a Federal Direct Stafford Loan must complete a Federal Student Loan Entrance Counseling Session in accordance with federal regulations.

• Department of Education website
• Click "Sign In" you will need your FAFSA Personal Identification Number (PIN) in order to complete. If you do not have a PIN or cannot recall it, you can request your PIN here.
• Click on Entrance Counseling. (When selecting a school during entrance counseling, search for "Marymount Manhattan College" without using abbreviations.)

Step 2: All Direct Loan borrowers must complete a Direct Loan Master Promissory Note (MPN).

• Department of Education website
• Borrowers will need their FAFSA Personal Identification Number (PIN) in order to complete the MPN. If you do not have a PIN or cannot recall it, you can request your PIN here.

Parent Loan for Undergraduate Students (PLUS) Process
All parent borrowers must have their credit history checked by the Department of Education. Approved borrowers will then have to complete a Master Promissory Note in order to obtain a loan.

• Department of Education website
• Click "Sign In" you will need your FAFSA Personal Identification Number (PIN) in order to complete. If you do not have a PIN or cannot recall it, you can request your PIN here.
• Click on Start PLUS process
• If approved complete PLUS MPN

It is important to remember the following:

• MMC will automatically be notified by the federal processor when an MPN or entrance interview has been completed and will send a school certification to the U.S. Department of Education.
• In order for you to receive credit for your loans on your student bill, you must complete the loan process and complete verification if selected.
• Loan funds are traditionally disbursed in two installments, a fall disbursement and a spring disbursement, and applied to your student account.
• Your repayment period varies from 10 to 25 years depending on which repayment plan you choose. You can prepay your student loans at any time without a penalty. You have the right to cancel all or part of your loan until 30 days after disbursement.

Where can I learn about the various Federal Direct loan programs?

• View this Department of Education website to obtain a copy of Your Federal Student Loans: Learn the Basics and Manage Your Debt which provides detailed information on federal student loan borrower's rights and responsibilities.
• The U.S. Department of Education's National Student Loan Data System (NSLDS) provides borrowers access to information on all student loans and/or federal grant amounts, including information on loan status, outstanding balances, and disbursements. Go to NSLDS.

Alternative Private Loans For 2012-2013
A Private education loan or alternative loan is a nonfederal loan issued by a lender such as a bank or a credit union for the purposes of financing postsecondary expenses.

Private loans should be viewed as a loan of last resort since they traditionally do not offer the same benefits of federally funded student loans in terms of interest rates, fees and repayment options.

Private loans like all loans must be repaid. Marymount Manhattan College encourages all students and their families to carefully consider all available financing options first before considering a private loan.

The Higher Education Act of 2008 sought to protect student loan consumers and amended the Truth in Lending Act (TILA) and established disclosure requirements for private education loans. ( Regulation Z)

As a result of this change all private lenders are required to collect from an applicant a self certification form before a private loan can be processed. The form is designed to remind students about other sources of financial assistance and federal loan options. The form seeks to collect from the student their cost of attendance and expected financial assistance at MMC. This information will be used by the lender as part of the eligibility determination process.

Marymount Manhattan College is not a lender and is not engaged in rendering legal, accounting, financial planning, or other professional services. We recommend that you consult with your own expert advisors before making educational financing decisions. Students and parents have the right and ability to select the education loan provider of their choice.

• MMC staff member can not accept any gift worth more than $10 from a representative of a student loan provider. The Department of Education has defined "gift" as:
• Any gratuity, favor, discount, entertainment, hospitality, loan or other item valued at more than a de minimus amount.
• "The term includes services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or by reimbursement.
• Staff can participate in meals, refreshments, and receptions in conjunction with professional association meetings, trainings, or conference events open to all attendees.
• Staff members shall not accept any remuneration or expense-reimbursement for serving as a member of a lender's advisory board. No staff members of the Office of Scholarships and Financial Aid serve as a member of a lender's advisory board.
• Staff may participate on advisory boards that are unrelated in any way to higher education loans.
• Marymount Manhattan College does not have a revenue-sharing arrangement with any student loan provider. These agreements are prohibited.
• Lender account representatives are not permitted to work within the Financial Aid Office or to pass themselves off as employees of the College.
Resources on How to choose a Lender
Private Loan Process

Step 1: Select a Lender

Students need to do their home work and research lenders to see what lender offers them the best options in terms of interest rates, fees, repayment options and disbursement options (check or EFT).


It is important to note that some lenders require students to immediately go into repayment and untimely payments can affect future disbursements. Meaning loans disbursed in the fall for which monthly timely payments are not made can jeopardize a spring disbursement of that loan regardless of original approval.

At Marymount Manhattan College, we believe that students and parents have the right and ability to select the education loan provider of their choice. Our Financial Aid office works with all lenders and guarantors to ensure the accurate and timely processing of Federal loans, and private loans on behalf of our students and their parents.

Step 2:Complete Private loan application process through Lender of your choice. When applying for an alternative / private loan, lenders will require you to complete a Private Education Loan Self- Certification form. If they do not provide you with a way to complete this form online then you can download the form from our website. Private Education Loan Self-Certification Form. Click to download the form.

• To calculate your cost of attendance you can use the attached figures. Click here for standard cost of attendance information
• To calculate your tuition cost go to our Tuition Information web page or log onto your MMC Connect account and view your term bill and use it to estimate the tuition cost related to the term of your loan.
• Your estimated financial assistance is available on the "Award Package by Aid Year" or by logging onto your MMC Connect account.

Important note: The Cost of Attendance information provided is based on standard enrollment of full time.


Students who plan on filing a FAFSA should do so before applying for a private loan so that they have an estimate of their financial assistance.

Step 3: Complete the Application Process Complete the application, submit self certification form and any other required paper work to lender, authorize a credit check and if approved sign promissory note.


Keep the following in mind when applying for your private loan:

• Carefully consider the loan period. Students should select a period that corresponds to the schools academic year. Since eligibility is tied to a credit check if a loan is needed for the full year it is advisable to apply for the loan for the full academic year rather than apply for a loan for the fall and then reapply for a loan for the spring. Remember the spring portion if not needed can be cancelled or returned.
• The loan amount you are certified for will be divided equally among the terms for which your private loan was applied for and approved
• Maximum eligibility is your Cost of Attendance, which includes tuition, fees, and living expenses minus the other financial aid you are receiving
• MMC will only deduct private loans from a student's bill when they are "approved", meaning that the credit is acceptable or "ready for school certification", promissory note has been signed, and any documentation required by the lender and college has been submitted. Please note it is the responsibility of the borrower to ensure that the Financial Aid Office receives any certification requests from lenders.

Step 4: School Certification Once the loan has been approved MMC will receive notification directly from the lender that the loan has been approved and that school certification is requested. Since these loans are designed by the lenders for educational purposes they require certification that the student is enrolled in a postsecondary institution. Traditionally they also require the school to certify the class level ,and credit enrollment and anticipated graduation date of the borrower.

Step 5: Disbursement of Loan Loans will be disbursed according to the disclosure statement from lender.

If you choose a lender that does not disburse funds via Electronic Funds Transfer( EFT), then a paper check will be issued to MMC and the student. The paper check will require endorsement from the borrower before funds will be credited to the student's account. The Center for Student Services will notify students if they need to endorse a paper check.

We encourage students to ask their lender about having their loan disbursed EFT since this expedites the payment process. Most disbursement dates are timed to reflect the start dates of each semester.


Direct to Consumer Loans: MMC does not encourage students to apply for Direct to Consumer Loans because the terms tend to be less favorable than private loans certified by the school. The loan amount is not automatically deducted from your bill nor can a temporary credit be placed on the account for the amount of the loan. The loan amount will be posted to your account once payment is received. Please keep in mind that Direct to Consumer Loans are counted as a financial resource and must be disclosed by the student to MMC.