Student Financial Services

Loans

Loans, Loans, and More Loans

Here we try to sort out the different kinds of loans available to MCPHS students.

Important: Students should have their applications completed by July 31 to ensure crediting of loan funds in a timely manner and to avoid late payment fees.

Need and Non-Need Based Loans

Federal Direct Subsidized Stafford Student Loan

• Federally funded education loan (Need Based) for undergraduate students
• Eligibility depends upon degree standing, grade level, and cumulative borrowing
• 6.8% fixed interest rate and loan fee of 1%
• Accrues no interest while student is enrolled at least half time
• Six month grace period and standard repayment term is ten years
• Deferral of repayment for service under the Peace Corps Act, Domestic Volunteer Service Act of 1973, or a comparable service as a volunteer for a tax-exempt organization of demonstrated effectiveness in the field of community service

Federal Direct Unsubsidized Stafford Student Loan

• Federally funded education loan (Non Need Based)
• Eligibility depends upon dependency status, grade level, and cumulative borrowing
• 6.8 % fixed interest rate and loan fee of 1%
• Accrues interest while student is in school and during grace period
• Six month grace period and standard repayment term is ten years
• Deferral of repayment for service under the Peace Corps Act, Domestic Volunteer Service Act of 1973, or a comparable service as a volunteer for a tax-exempt organization of demonstrated effectiveness in the field of community service.
• First time Stafford borrowers must complete entrance counseling and sign a master promissory note (MPN) to receive funds.

Federal Perkins Loan

• Federally funded education loan (Need Based)
• 5% fixed interest rate and no loan fee
• Accrues no interest while student is enrolled at least half-time
• Nine month grace period and standard repayment term is ten years
• Several loan cancellation options
• Borrowers must complete a promissory note annually
• Access information about your Health Professions Loan, Perkins Loan and MCP Loan at https://www.mycampusloan.com

Health Professional Loan (HPL) Full-time Dependent PharmD students

• Federally funded education loan (Need Based)
• 5% fixed interest rate and no loan fee
• Accrues no interest while student is enrolled full-time
• Twelve month grace period and standard repayment term is ten years
• Borrowers must complete a promissory note annually
• Access information about your Health Professions Loan, Perkins Loan and MCP Loan at https://www.mycampusloan.com

• For eligible parents (biological or adoptive) of dependent undergraduate students
• For U.S. citizens or permanent residents with a satisfactory credit history
• Interest rate fixed at 7.9% with a loan fee of 4%
• Borrowers can receive up to the cost of attendance minus all other aid received from all sources
• Repayment begins 60 days after loan is fully disbursed
• Parents may defer repayment while student is enrolled at least half-time and for an additional six months after the student ceases at least half-time enrollment.
• If denied due to credit, parent may appeal with lender or reapply with a credit-worthy co-borrower
• Requires student enrollment at least half-time
• Cannot be originated after the last date of the term
• FAFSA is required

• For graduate students enrolled in an eligible program of study
• For U.S. citizens or permanent residents with a satisfactory credit history
• Interest rate fixed at 7.9% with a loan fee of 4%
• Borrowers can receive up to the cost of attendance minus all other aid received from all sources
• Repayment begins 60 days after loan is fully disbursed
• Deferments and forbearances while in-school, for financial hardship and unemployment
• Important: No grace period; repayment begins within 30 days of program completion
• If denied due to credit, student may appeal with lender or reapply with a credit-worthy co-borrower
• Requires student enrollment at least half-time
• Cannot be originated after the last date of the term
• FAFSA is required.

Credit-Based Private Alternative Loans

• Numerous alternative loans are offered by various private lenders
• Certified by the College every year for the student's entire annual academic period of enrollment
• Only those loans fully approved (promissory note and additional documents submitted to lender) will be certified. Loans in a pre-approval status will not be certified by the College.
• Students are strongly encouraged to plan for the entire annual period of enrollment when applying for private alternative loans.
• Loans will not be certified for a partial period of enrollment (i.e., a semester) unless it is the student's final period of enrollment.

Access your Federal Loan History on the National Student Loan Data System (NSLDS)

The National Student Loan Data System at www.nslds.ed.gov will account for all federal loans borrowed by a student and identify loan servicers along with contact information. Please note, this website does not provide loan history for private, institutional or state loans, nor does it track university or school-named loans that you borrowed through an institution.

Additional Federal Stafford Loan Details

The College Cost Reduction and Access Act of 2007 reduced the fixed interest rates on new subsidized Stafford loans for undergraduate students in 2008-2009. For additional details on how the rates will change in future years, students and parents may want to visit: http://www.finaid.org/loans/scripts/interest.cgi

Annual Stafford loan limits are based on the student's degree standing. Total eligibility differs depending on a student's dependency status. Please review our Student Financial Services Handbook for additional information about degree standing and dependency status.

The first level of Stafford loan eligibility is based on need. Students with demonstrated financial need receive their first level of eligibility in Subsidized Stafford loan funding. Students who do not demonstrate need receive their first level of eligibility in Unsubsidized Stafford loan. All students are eligible for a second level of Unsubsidized Stafford Loan funds.

Stafford Loan Aggregate Limits

The Stafford loan programs are subject to aggregate limits on borrowing. Once students reach the aggregate limit for their academic standing and dependency status, they may not borrow additional Stafford loan funding until their academic standing or dependency status changes. The Stafford aggregate maximums for combined subsidized and unsubsidized borrowing are as follows:

Stafford Loan Borrower Responsibilities

Entrance Counseling

If you will be receiving Subsidized or Unsubsidized Stafford Loan funds for the first time at MCPHS as part of your financial aid award, federal regulations require that you complete an entrance interview. This online entrance counseling will inform you about your rights and responsibilities as a borrower and provides important information about Stafford Loans.

Master Promissory Notes

Students who borrow from the Federal Direct Stafford Loan program for the first time at the College must complete a Master Promissory Note (MPN). The MPN is a legal document in which you sign to agree to repay the borrowed funds in your name. It also provides you with the terms and conditions of the loan. Students need to complete the MPN only once, as it will serve as their Promissory Note for all of the Federal Subsidized and Unsubsidized Stafford loans borrowed while attending the College.

Exit Counseling

As a Federal Direct Stafford Loan borrower, you are required to complete online exit counseling when you graduate, withdraw, stop attending, or your enrollment status is less than half-time. Exit Counseling provides you with important information regarding your rights and responsibilities associated with borrowing and repaying your Federal Student Loans.