Student Finance

Federal Loans

Low-interest federal loans are part of most financial aid award packages. These loans help you pay for college and repayment typically begins after you leave school. Federal loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment and income-contingent repayment plans, and loan forgiveness benefits, which other student loans are not required to provide.

By applying for financial aid and demonstrating a financial need, a student may be considered for one or more of the following:

Federal Direct Loan Program

Up to $3,500 – 12,500 per year

Federal Direct loans are available to students regardless of income. This program allows a student to borrow directly through the U.S. Department of Education rather than through a bank or other lender. Repayment of the principal does not begin until six months after the student ceases to be enrolled at least halftime. There are two kinds of Direct Loans, subsidized and unsubsidized. The U.S. government pays the interest on the subsidized Direct loan while the student is in school. The unsubsidized Direct loan accrues interest while the student is in school. The current interest rate is 3.86% for the subsidized Direct Loan and 3.86% for the unsubsidized Direct Loan. FAFSA results determine eligibility for the subsidized or unsubsidized Direct loan. An origination fee of 1% will be deducted from the loan amount before the funds are issued to Pacific Union College.

Students must complete a Master Promissory Note and an Entrance Interview when they first borrow under this program. The Direct Loan Master Promissory Note is valid for 10 years. A FAFSA is required to receive Federal Direct Loan funds, www.fafsa.ed.gov.

Annual Loan Limits

  Subsidized Dependent Unsubsidized Independent Unsubsidized
Freshman $3,500 $2,000 $6,000
Sophomore $4,500 $2,000 $6,000
Junior $5,500 $2,000 $7,000
Senior $5,500 $2,000 $7,000

Aggregate Limits

  Subsidized Unsubsidized
Undergraduate (dependent) $23,000 $8,000
Undergraduate (independent) $25,000 $34,500

Federal Perkins Loan Program

Up to $3,000 per year as funds are available.

The Perkins Loan is a Federally Insured revolving fund loan having a low interest rate of 5%. Repayment begins nine months after the student ceases to be enrolled at least halftime. Perkins loans may be cancelled by working in certain occupations. Please see Loan Repayment section for more details. Only Juniors and Seniors are eligible for Perkins Loans at this time. A FAFSA is required to receive Federal Perkins Loan funds, www.fafsa.ed.gov.

Federal Direct Parent Loan (PLUS)

Up to cost of education less other forms of financial aid.

This program allows parents of dependent undergraduate students to borrow directly through the U.S. Department of Education rather than through a bank or other lender. The parent may borrow the total cost of attendance less the financial aid that the student has received. Repayment may begin within sixty days after full disbursement of the loan funds. The interest rate is fixed at 6.41%. An origination fee of 4% will be deducted from the loan amount before the funds are issued to Pacific Union College.

Negative information reported to a credit bureau may disqualify a borrower from using this loan. If a parent borrower is declined from receiving a PLUS loan, the undergraduate student may borrow an additional Unsubsidized Direct Loan.

Parent PLUS Information & Instructions

Master Promissory Note

If you are accepting a Stafford loan, you must complete a Master Promissory Note (MPN) application to receive funding for your education. Due to the recent pass of the Student Financial Aid Reform bill, all students must complete and sign the new MPN online for the 2010-2011 school year. In order to complete this process, you will need:

  • Approximately 30 minutes (you must complete the MPN in a single session)
  • Your Federal Student Aid Pin Number
  • Personal Information (Permanent/Mailing Addresses, Telephone Number, Email)
  • Drivers License Information (If Applicable)
  • Employer Information (Name & Address)
  • Reference Information for two people you have known at least 3 years. The first reference should be a parent or legal guardian. (Name, Address, Telephone Number & Relationship)

To begin the process, go to: www.studentloans.gov Under the heading Manage My Direct Loan, click "Sign In". In order to sign in, you will need your Pin Number from your FAFSA. Once signed in, you will be able to complete your Direct Loan Entrance Interview and Master Promissory Note.

Go to: "Complete Master Promissory Note"
Select: "Subsidized/Unsubsidized"

From there, you will be able to complete your loan application.

Please note: Your e-signature must match your name EXACTLY as it is written at the top of the MPN. If it does not match exactly, your MPN will be rejected.

Entrance Counseling

The Department of Education requires that students receive counseling on the rights and responsibilities of a borrower prior to receiving Stafford Loan funds. You can now participate in this entrance counseling session wherever you have access to the internet.

In order to complete your Entrance Counseling for Direct Lending, please follow the instructions:

  1. Log on to the Direct Lending website, www.studentloans.gov
  2. Under the heading Manage My Direct Loan, click "Sign In". In order to sign in, you will need your Pin Number from your FAFSA. Once signed in, you will be able to complete your Direct Loan Entrance Interview and Master Promissory Note.
  3. Go to "Complete Entrance Counseling".
  4. Read all the content and answer each question, read the borrower's rights and responsibilities, and print the Counseling Completion Verification page for your records. All answers can be found within the counseling session webpage. The school will receive a copy of your results.

If you do not have access to the internet or choose not to participate in online counseling, you must see your financial aid counselor or complete a paper form before receiving your loan funds.

Exit Counseling

Federal regulations require students that have obtained Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, Direct Subsidized Loans or Direct Unsubsidized Loans participate in a student loan repayment counseling session before withdrawing, graduating, or dropping below half-time attendance (even with plans to transfer to another school).

Our office offers online Exit Counseling that will teach you what to expect when you enter repayment. You can complete this session at any time by using the following website: http://www.nslds.ed.gov/nslds_SA

If you choose not to use the online Exit Counseling, you MUST complete a paper Exit Counseling form which is available in the Student Finance office.