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MU Home » Financial Aid

Student & Parent Loans

Student Loans: General Loan Information

Students interested in the Stafford Student Loan must complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility. The FAFSA form does not have to be completed if the ONLY form of aid being applied for is an Alternative Loan or Parent PLUS Loan, if the student is dependent. All loans come to Methodist University in two disbursements and are credited directly to the student's Business Office account.

Methodist University uses ELM to electronically process all student and parent loans. Once a student's/parent's loan has been processed, the student/parent can check on loan amounts and/or disbursement dates by going to www.elmresources.com.


Student Loans: The Federal Stafford Loan Program

This loan program offers loan funds to students of any income level who are enrolled at least half time and who are pursuing a bachelor's degree or a teacher's certificate. These funds may be "subsidized" or "unsubsidized. The interest rate, usually a variable rate, is adjusted annually on July 1, not to exceed 8.25%. The current interest rate for the 2004-2005 academic year is 2.77%.

Subsidized Stafford Loan: This loan is awarded to students who demonstrate financial need through the FAFSA. Repayment of this loan is deferred as long as the borrower remains enrolled on at least a half-time basis. Six months after the student graduates or ceases at least half-time enrollment, repayment of the loan (principal and interest) begins.

Unsubsidized Stafford Loan: This loan is offered to students who do not demonstrate sufficient financial need, according to the FAFSA analysis, but wish to borrow funds for their educational expenses. The student may make interest payments on this loan while enrolled on at least a half-time basis. Repayment on the principal is deferred until six months after the student graduates or ceases at least half-time enrollment.

Limits:
Freshman (0-30 s.h.) $2,625
Sophomore (31-62 s.h.) $3,500
Junior/Senior (63+ s.h.) $5,500

Aggregate Loan Limit = $23,000

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Parent Loans: The Federal Parent Loan for Undergraduate Students (FPLUS)

This loan program offers non-need based loans to assist parents of dependent students. The interest rate is variable and adjusted annually, based on the 91-day Treasury Bill rate plus 3.10%, capped at 9%. The maximum FPLUS amount that may be borrowed equals the difference between the cost of attendance and any other financial aid the students is receiving. In no case may the FPLUS loan exceed a student's cost of attendance minus estimated financial assistance. These loans are subject to a credit review conducted by the lender. Applications are available through our office, your local bank or lending agency. A parent may complete the application and return it to the Office of Financial Aid where we will certify the student's expenses and forward it to the lender of your choice.

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Alternative Loans

Methodist University offers a wide variety of alternative loans to help fray the costs of attendance. The interest rate and maximum amounts vary depending upon the chosen program. These loans are subject to a credit review conducted by the lender. Many of them also require that the student obtain a credit-worthy co-signer. International students may be eligible to borrow with a US citizen as a co-signer. Applications and brochures are available through our office. Students must complete the application and return it to the Office of Financial Aid where we will certify the student's expenses and forward it to the lender of your choice. (Click on the link below to see a listing of the different alternative loans offered at Methodist University).

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Methodist University Preferred Lender List for Federal Stafford Loans and the Federal PLUS Loan Program

First-time Stafford loan borrowers must complete Entrance Loan Counseling before funds will be disbursed. You may do this by clicking on Loan Counseling.

Selecting a lender is an important decision for students and parents. The lender you choose will be a part of the life of the loan.

Lender Name Lender Code
Bank of America 824421

College Foundation, Inc. (CFI)
807037
Citibank 826878
SunTrust 811353
Wachovia/Educaid 811323

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