Student Loans

Loan Information

 

When needing financial assistance in meeting the expenses of your Benedictine College education, educational loans are an accessible source. Benedictine provides several different loan options. The primary resource is the Federal Loan Program. Private loans provide an alternative and/or additional mode of funding.

 

Kansas Attorney General's Student Loan Code of Conduct

 

  • Preferred Lender Guidelines - Preferred or suggested lender lists used by colleges will be based solely on the best interests of students and parents who may use the list and without regard to the financial interests of the college.
  • Lender Disclosures - All preferred or suggested lender lists maintained by a college will clearly and fully disclose the criteria and process used to select the lenders included on such lists.  Students and parents will also be told that they have the right and ability to select a lender of their choice, regardless of whether such lender appears on a school's lender list.
  • Revenue Sharing - Colleges will not accept anything of value from any lender in exchange for any advantage sought by the lender.  Lenders will not be required or allowed to pay to be placed on a school's preferred lender list.
  • Gifts and Trips - College employees will not accept anything of more than nominal value from any lender.  This includes gifts or trips of any kind.
  • Advisory Board Membership - College employees will receive no compensation or anything of value for serving on the advisory board of any lender.
  • Lender Identification - No employee of any lender may work in or provide staffing in a college financial aid office.  In addition, colleges shall direct employees of lenders to clearly identify themselves as employees of the lender and to never identify themselves as college employees when meeting or speaking with students or parents.

 

Entrance / Exit Loan Counseling

 

Entrance counseling must be completed before a student can receive a disbursement of Direct Loan funds. Entrance counseling is designed to ensure that a potential borrower is educated and informed of the loan process, eligibility, and responsibility. Students should follow the links on their Ravenszone to complete Entrance Counseling.

Exit counseling must be completed when a student who has received Direct Loan Funds either graduates, or leaves Benedictine College permanently. Benedictine College students may fulfill this federal requirement by clicking on www.studentloans.gov.  After you have completed your on-line Exit Counseling, make an appointment to meet with the Benedictine loan coordinator for a personal appointment.  Our goal is to ensure a student’s readiness to meet repayment obligations successfully and to counsel the student options.  Failure to complete the Exit Counseling will result in a student transcript hold.

 

Federal Direct Student Loan

 

Federal Direct Student loans are federal loans that are in the student's name and may be either subsidized or unsubsidized.  A subsidized student loan is awarded based on financial need, which is determined from the FAFSA.  The US Dept. of Education will establish the interest rate period prior to July 1 each year applicable to the upcoming academic period. The federal government pays the interest accruing on the loan while the student is enrolled at least half time in a degree-seeking program of study.  Repayment does not begin until six months after you have graduated, dropped below half-time status, or withdrawn from Benedictine College.

 

An unsubsidized student loan is not need-based. The US Dept. of Education will establish the interest rate prior to July 1 each year applicable to the upcoming academic period. The borrower is charged interest from the time the loan is disbursed until it is paid in full.  The student can choose to pay the interest while in school or defer the interest and have it added to the principal balance. As with the subsidized loan, repayment on the principal does not begin until six months after you have graduated, dropped below half-time status, or withdrawn from Benedictine College.

 

Direct loans have maximum annual limits.  Class level is dependent on the amount of credits earned and can be found in the college course catalog. The following is a list of the maximum amounts that may be borrowed:

 

  • Freshmen - $5500
  • Sophomores - $6500
  • Juniors - $7500
  • Seniors - $7500

 

Independent students and students whose parents were denied on the PLUS loan may be eligible for an additional unsubsidized student loan. Contact the Financial Aid Office for more details.

 

Applicable loan origination fees will be deducted from the gross loan amount at the time of disbursement to the student billing account. The US Dept. of Ed will establish applicable fee rates.

 

There are two requirements that have to be complete for these loan funds to be disbursed. The requirements are the Entrance Counseling and the Master Promissory Note. These can be completed at www.StudentLoans.gov. These are only to be completed once and are good for 10 years.

 

Federal Direct Parent PLUS Loan

 

This loan is available to the parents of a dependent student. The loan is a credit-based loan in the parent's name and the repayment is the parent's responsibility. Parents may borrow up to the cost of attendance of their dependent's education, less any amount of financial aid received. Eligibility is based on credit history.  The loans disburse 50% of the total in the fall semester and 50% of the total in the spring semester. Applicable loan origination fees will be deducted from the gross loan amount at the time of disbursement to student billing account. The US Dept. of Ed will establish applicable fee rates.

 

Repayment begins 60 days after the loan is fully disbursed. Repayment is made over a 10-year period. The payments can be deferred while the student is enrolled in school.

 

 A pre-approval (PLUS Request Form) and a PLUS Master Promissory Note must be completed. These can be accessed at www.StudentLoans.gov.

 

Alternative (Private) Loan

 

The Alternative Loan is a form of financial aid offered by private lenders as an alternative to federal loans (e.g. subsidized, unsubsidized &/or Parent PLUS loan). Alternative loans can be issued in the student's name or the parent’s name, as determined by the private lender. In most cases, payments do not begin until six months after the student has graduated, dropped below half-time status, or withdrawn from Benedictine College. In many instances, the lender will require a co-signer, if the applicant has not established a two-year credit history. Alternative Loans' interest rates are based upon the borrower’s (or co-signer’s) credit history. The interest rates and fees may be fixed or variable and are established by the lender. Benedictine College does not recommend any lender in favor of any other lenders, regardless of their inclusion in the College’s lender list. Students are free to select any lender for Alternative Loans. Check out the list of available lenders.

 

Parents and students should pursue all the financial aid including grants, scholarships, work-study, Federal Direct loans, Federal Perkins loans, and Federal Parent (PLUS) loans before pursuing a private/alternative loan as the terms of the private/alternative loan may not be as favorable when compared to the Federal loan programs. Student and parent borrowers are encouraged to research the private/alternative market to secure the best loan available for their needs. Benedictine College will not deny, refuse, or delay the loan application or loan certification process in the event a student/parent borrower wishes to secure a private/alternative loan from another lender(s). Before you borrow, learn more about private student loans.