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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 halftime enrollment. Please consult the Earlham College Financing Options brochure for further information about each loan program (interest rates, repayment, etc.).

Federal Direct Stafford Loan (FDSL)

Earlham College uses federal funds to award Federal Direct Stafford Loans directly to students as borrowers. Often these loans are referred to as "Direct Loans" or "Subsidized Loans." Beginning with the 2007-08 academic year, annual maximums are $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), and $5,500 for third- and fourth-year students. 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.

Third-year students must have earned at least 58 credits but fewer than 87 credits. Fourth-year students must have at least 87 credits. Different annual limits applied in previous years.

A required origination fee is deducted at the time of disbursement. Students receiving Direct Loans are given a disclosure statement explaining the details. 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.

Borrowers are advised to read their promissory notes fully. Students with an FDSL or FDUSL (see next item) must complete exit counseling when they finish their academic careers at Earlham College.

The Financial Aid Office notifies a borrower when the loan has been disbursed. Borrowers may cancel all or a portion of the Direct Loan disbursement by submitting a written request to the Accounting Office within 30 days of receiving the disbursement notice that the Direct Loan has been disbursed.

Federal Direct Unsubsidized Stafford Loan (FDUSL)

If a student is not eligible for an FDSL, he or she can obtain an FDUSL. The student is the borrower. Annual loan limits for dependent students are the same as for the FDSL.

Maximum loans for independent students vary from these amounts.

Students who are not eligible for the maximum annual FDSL may borrow the difference between the annual maximum and the student's FDSL eligibility as an FDUSL. Borrowers are required to pay the interest on any FDUSL while in school or in a deferment period. Interest may be capitalized if agreed upon by both the borrower and the lender.

Most other provisions of this loan are identical to those of the FDSL (see previous item), including the required origination fee deducted at the time of disbursement. Borrowers are advised to read their promissory notes fully.

Federal Direct Additional Unsubsidized Stafford Loan (FDADUNSL)

The following information about the program applies to FDADUNSL loans first disbursed on or after July 1, 2008. The student is the borrower. A dependent student may borrow an annual a maximum of $2,000 if otherwise eligible. If a dependent student's parents are denied a Federal Direct Plus Loan, the annual maximum increases to $6,000 for first- and second-year students and to $7,000 for students who have completed their second year.

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.

Federal Direct Parent Loans (FDPLUS)

Parents of dependent students may apply to receive this loan regardless of income level. 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 Direct Unsubsidized Stafford Student Loan).

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. Earlham College participates in the Federal Direct Lending Program. If your parent wants to apply for a Federal PLUS loan, the parent should do the credit check and loan application at Please be careful to complete the credit check and application for the proper academic year.

Graduate PLUS Program

A student in an Earlham graduate program should contact the Financial Aid Office about the Graduate PLUS program.

Currently or Previous Used by Earlham College Students*

Citizens One
Discover Student Loans
Sallie Mae
SunTrust Bank
Union Federal Private Student Loan
Wells Fargo

* 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.


  • 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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