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Loans

Each academic year students must submit the Free Application for Federal Student Aid (FAFSA) to Earlham College to have their eligibility for any Federal Direct Student Loan determined. Since the cost of a student's program and other aid the student receives affect the student's eligibility for any Federal Direct Loan, each student's eligibility is individually determined by the Earlham College Financial Aid Office.

Student loans must be repaid following graduation, withdrawal or dropping to less than half-time enrollment.

The federal government offers two loans for students enrolled at least half-time, the Stafford Subsidized and the Stafford Unsubsidized. The difference between the two is that the government pays the interest on the subsidized loan (as long as the student is enrolled at least half-time) and the student is responsible for the interest on the unsubsidized loan.

Federal Subsidized Stafford Loan

Earlham College uses federal funds to award Federal Direct Stafford Loans directly to students as borrowers. Annual maximums are listed below.

  • $3,500 for first-year students (students with fewer than 29 semester credits)
  • $4,500 for second-year students (students with at least 29 but fewer than 58 semester credits)
  • $5,500 for third- and fourth-year students (students with greater than 58.9 credits)

The interest rate for the Federal Subsidized Stafford Loan can vary depending on the date of first disbursement of the loan. All interest rates for this loan are fixed for the life of the loan. Interest rates for federal student loans are determined by Congress. For more information about interest rates, please visit https://studentaid.ed.gov/sa/types/loans/interest-rates. The Federal Subsidized Stafford Loan is an interest free loan while the student is in school at least half time.

A required origination fee is deducted at the time of disbursement. The net proceeds of the loan for first-time borrowers will not be credited to a student's account until loan entrance counseling and a Master Promissory Note (MPN) have been completed. These can be completed at www.studentloans.gov using your FSA ID and password. Borrowers are advised to read all of the documentation fully before signing.

A dependent undergraduate student may borrow a cumulative maximum of $23,000 if otherwise eligible. Lower limits may apply for students attending less than an academic year. A student's Award Notification indicates the maximum the student is eligible to borrow for a particular academic year.

Students who have borrowed Federal Subsidized Stafford Loans must complete exit counseling when the finish their academic careers at Earlham College.

The Financial Aid Office electroically notifies borrowers when the loan has been disbursed. Borrowers may cancel all or a portion of the Federal Subsidized Stafford Loan disbursement by submitting a written request to the Financial Aid Office <finaid@earlham.edu> within 15 days of receiving the disbursement notice that the Direct Loan has been disbursed.

Federal Unsubsidized Stafford Loan

If a student is eligible for the Federal Subsidized Stafford Loan, the maximum a student can receive for the Federal Unsubsidized Stafford Loan is $2,000. If a student is not eligible for the Federal Subsidized Stafford Loan, he or she can obtain the Federal Unsubsidized Stafford Loan

  • $5,500 minus any Federal Subsidized Stafford Loan for first-year students (students with fewer than 29 semester credits)
  • $6,500 minus any Federal Subsidized Stafford Loan for second-year students (students with at least 29 but fewer than 58 semester credits)
  • $7,500 minus any Federal Subsidized Stafford Loan for third- and fourth-year students (students with greater than 58.9 credits)

Maximum loans for independent students vary from these amounts.

Students who are not eligible for the maximum annual Federal Subsidized Stafford Loan may borrow the difference between the annual maximum and the student's Federal Subsidized Stafford Loan eligibility as the Federal Unsubsidized Stafford Loan.

The interest rate for the Federal Unsubsidized Stafford Loan can vary depending on the date of first disbursement of the loan. All interest rates for this loan are fixed for the life of the loan. Interest rates for federal student loans are determined by Congress. For more information about interest rates, please visit https://studentaid.ed.gov/sa/types/loans/interest-rates. Borrowers are required to pay the interest on any Federal Unsubsidized Stafford Loan while in school or in a deferment period. Interest may be capitalized if agreed upon by both the borrower and lender.

A required origination fee is deducted at the time of disbursement. The net proceeds of the loan for first-time borrowers will not be credited to a student's account until loan entrance counseling and a Master Promissory Note (MPN) have been completed. These can be completed at www.studentloans.gov using your FSA ID and password. Borrowers are advised to read all of the documentation fully before signing.

A dependent undergraduate student may borrow a cumulative maximum of $31,000 (total of Federal Subsidized Stafford Loan and Federal Unsubsidized Stafford Loan) if otherwise eligible. Lower limits may apply for students attending less than an academic year. A student's Award Notification indicates the maximum the student is eligible to borrow for a particular academic year.

Students who have borrowed Federal Subsidized Stafford Loans must complete exit counseling when the finish their academic careers at Earlham College.

The Financial Aid Office electroically notifies borrowers when the loan has been disbursed. Borrowers may cancel all or a portion of the Federal Unsubsidized Stafford Loan disbursement by submitting a written request to the Financial Aid Office <finaid@earlham.edu> within 15 days of receiving the disbursement notice that the Direct Loan has been disbursed.

Federal Additional Unsubsidized Stafford Loan

If a dependent student's parents are denied a Federal Direct PLUS Loan, the annual maximum can increase by the amounts lsited below (the Financial Aid Office will determine the amount a student can borrow):

  • $4,000 for first- and second-year students (less than 59 semester credits)
  • $5,000 for third- and fourth-year students (greater than 59 credits)

The annual limits for students considered independent for purposes of Federal Title IV Student Aid according to federal regulations are the same as for dependent students whose parents are denied a Federal Direct Plus Loan.

The interest rate for the Federal Additional Unsubsidized Stafford Loan can vary depending on the date of first disbursement of the loan. All interest rates for this loan are fixed for the life of the loan. Interest rates for federal student loans are determined by Congress. For more information about interest rates, please visit https://studentaid.ed.gov/sa/types/loans/interest-rates. Borrowers are required to pay the interest on any Federal Additional Unsubsidized Stafford Loan while in school or in a deferment period. Interest may be capitalized if agreed upon by both the borrower and lender.

A required origination fee is deducted at the time of disbursement. The net proceeds of the loan for first-time borrowers will not be credited to a student's account until loan entrance counseling and a Master Promissory Note (MPN) have been completed. These can be completed at www.studentloans.gov using your FSA ID and password. Borrowers are advised to read all of the documentation fully before signing.

A dependent undergraduate student may borrow a cumulative maximum of $57,500 (total of Federal Subsidized Stafford Loan, Federal Unsubsidized Stafford Loan and Federal Additional Unsubsidized Stafford Loan) if otherwise eligible. Lower limits may apply for students attending less than an academic year. A student's Award Notification indicates the maximum the student is eligible to borrow for a particular academic year.

Students who have borrowed Federal Additional Subsidized Stafford Loans must complete exit counseling when the finish their academic careers at Earlham College.

The Financial Aid Office electroically notifies borrowers when the loan has been disbursed. Borrowers may cancel all or a portion of the Federal Unsubsidized Stafford Loan disbursement by submitting a written request to the Financial Aid Office <finaid@earlham.edu> within 15 days of receiving the disbursement notice that the Direct Loan has been disbursed.

Parent Loan for Undergraduate Students (PLUS)

Parents of dependent students may apply to receive this loan regardless of income level.Parents can apply for the Federal Parent Loan at www.studentloans.gov using their FSA ID and password. The U.S. Department of Education will run a credit check and give you an immediate decision. The maximum a parent may borrow is the difference between the student's cost of education (as determined by Earlham) and any financial assistance for which the student may be eligible (including a Federal Subsidized Stafford Loan, Federal Unsubsidized Stafford Loan and Federal College Work Study).

The interest rate for the Federal PLUS Loan can vary depending on the date of first disbursement of the loan. All interest rates for this loan are fixed for the life of the loan. Interest rates for federal student loans are determined by Congress. For more information about interest rates, please visit https://studentaid.ed.gov/sa/types/loans/interest-rates. Borrowers are required to pay the interest on any Federal PLUS Loan while in school or in a deferment period. Interest may be capitalized if agreed upon by both the borrower and lender.

A required origination fee is deducted at the time of disbursement. Repayment of this loan begins either 60 days after the loan is fully disbursed for the academic year OR six months after the student for whom the loan is borrowed ceases to attend at least one-half time. A parent borrow should carefully review repayment provisions with the Direct Lending Servicer.

Parents should receive a disclosure statement from Direct Loans explaining the details of this loan program. Approved loans are credited directly to the student's account. An acknowledgment showing the loan has been credited to the student's account will be sent to the parent within 45 days. Please be careful to complete the credit check and application for the proper academic year.

Graduate PLUS Program

Students in Graduate Programs may apply to receive this loan regardless of income level. Students can apply for the Federal Graduate PLUS Loan at www.studentloans.gov using their FSA ID and password. The maximum a graduate student may borrow is the difference between the cost of education (as determined by Earlham) and any financial assistance for which the student may be eligible (including Federal Unsubsidized Stafford Loan).

The interest rate for the Federal Graduate PLUS Loan can vary depending on the date of first disbursement of the loan. All interest rates for this loan are fixed for the life of the loan. Interest rates for federal student loans are determined by Congress. For more information about interest rates, please visit https://studentaid.ed.gov/sa/types/loans/interest-rates. Borrowers are required to pay the interest on any Federal Graduate PLUS Loan while in school or in a deferment period. Interest may be capitalized if agreed upon by both the borrower and lender.

A required origination fee is deducted at the time of disbursement. Repayment of this loan begins six months after the student for whom the loan is borrowed ceases to attend at least one-half time. You should carefully review repayment provisions with the Direct Lending Servicer.

You should receive a disclosure statement from Direct Loans explaining the details of this loan program. Approved loans are credited directly to your student account. An acknowledgment showing the loan has been credited to the student's account will be sent to the parent within 45 days.Earlham College participates in the Federal Direct Lending Program. If you want to apply for a Federal Graduate PLUS Loan, you will need to go to www.studentloans.gov. Please be careful to complete the credit check and application for the proper academic year.

Private Lenders

Students may apply for private loans to cover any shortfall in their financial aid package or to cover the Expected Family Contribution (EFC).

Students will need to apply with a credit-worthy cosigner. Interest on these loans accrues as soon as the funds are issued. Lenders offer varying options of repayment ranging from immediate repayment, to no payments until after graduation or when the student ceases to be enrolled at least half-time.

Below is a list of lenders that have been used by Earlham Students.

Citizens One www.citizensone.com/student-loans
Discover Student Loans www.discoverstudentloans.com
InvestEd Student Loans www.investedindiana.org/lending/student-loan
Sallie Mae www.salliemae.com
SunTrust Bank www.suntrusteducation.com
Union Federal Private Student Loan www.ufpsl.com
Wells Fargo www.wellsfargo.com/student

* Earlham College does NOT recommend, promote, or encourage borrowing from a particular lender. Also, a borrower may find and use lenders not on the list. We ask that any borrower carefully consider which lender to use and to be fully informed about the terms of any loan obtained.

AT A GLANCE

  • Need-based funds based on student eligibility

  • Loans are provided by the federal government or financial institutions

  • The FAFSA must be submitted to Earlham to determine eligibility for any federal loans

  • Loans must be repaid following graduation, withdrawal or dropping to less than half-time enrollment
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