Apply for a Loan

Loan Processing Information for the 2018-2019 Academic Year

In order to help families cover part of the cost of attending Barnard in 2018-2019, educational loans are available through the Federal Direct Loan Program.

Federal Direct Stafford Student Loan, 2018-2019

Federal Direct Parent Loan for Undergraduate Students (PLUS), 2018-2019

2018-2019 Federal Direct Stafford Loan Procedures

All schools participate in the Federal Direct Stafford Loan Program. This Program is administered by Barnard College which works with the U.S. Department of Education to offer this loan. The student borrows directly from the federal government and has a single contact--the Direct Loan Servicing Center--for everything related to the repayment of your loans. Detailed information regarding the Program can be found on the U.S. Department of Education's website. Federal Direct Stafford Loans are available to students who are enrolled at least half-time and are U.S. citizens or permanent residents.

The Direct Loan Program offers the following types of student loans:

Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while the student is enrolled at least half-time.

Unsubsidized: not based on financial need and interest is charged once the loan is disbursed. Interest will accrue on this loan during the time a student is in school as well as during grace and deferment periods.

Federal Direct Stafford Loan Limits (Undergraduate, Dependent Student)

  Maximum Subsidized  Additional Unsubsidized
1st year $3,500 $2,000
2nd year $4,500 $2,000
3rd year $5,500 $2,000
4th year $5,500 $2,000

If a parent is denied a PLUS Loan, a dependent student is then eligible for an additional Federal Direct Unsubsidized Loan, up to $4,000 for first-year and sophomores and $5,000 for juniors and seniors.

Federal Direct Stafford Loan Application Procedures

1. Complete the Federal Direct Student Loan Application form in your My Barnard Portal if you wish to apply for a Federal Direct Stafford Loan.

Barnard Grant Recipients:  Students on financial aid can accept the loan included in their package through the Financial Aid Portal.  Students who wish to borrow the additional unsubsidized loan amount can submit a loan application found in their My Barnard Portal.

2. Complete the Free Application for Federal Student Aid (FAFSA), if you have not already done so for 2018-2019. Barnard's Federal School Code is 002708.

3. Complete Entrance Counseling online. This helps you to understand your responsibilities regarding your loan and is required before the first disbursement of your loan. If you have borrowed a Stafford loan before, you do not need to do another Entrance Counseling session. Check your financial aid portal to determine if your Entrance Interview was received.

  • Go to: www.studentloans.gov  (Log in with your your FSA ID.  To create or edit an FSA ID, click here.  If you need assistance, call 1-800-557-7394.)
  • Click on Complete Entrance Counseling and follow the steps and submit the Entrance Counseling.
  • The Financial Aid Office receives the results electronically.

4. Complete the Master Promissory Note (MPN) online. This is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. If you borrowed a Federal Direct Stafford Loan in the past and completed an MPN, you do not need to do another MPN. Check your financial aid portal to determine if your MPN was received.

  • Go to: www.studentloans.gov  (Log in with your FSA ID.  To create or edit an FSA ID, click here.  If you need assistance, call 1-800-557-7394.)
  • Click on "Complete Loan Agreement for a Subsidized/Unsubsidized Loan" Master Promissory Note ; (MPN) and follow the steps and submit the MPN.
  • The Financial Aid Office receives the results electronically.

5. If you were selected for verification after completing the FAFSA, the Financial Aid Office will send you the appropriate form to complete.

6. Submit 2016 federal tax returns and all 2016 W-2 forms for you and your parents to the Financial Aid Office if you have not already done so.

Federal Direct Stafford Loan Interest Rates and Fees

 
  Subsidized and Unsubsidized Loans
Interest Rate Effective for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019:
Fixed Interest Rate:  5.05%
Loan Origination Fee

For loans where the first disbursement is made on or after October 1, 2017 and before October 1, 2018:
Origination Fee: 1.066%
Net Fee of 1.066% is deducted from the amount borrowed.

For loans where the first disbursement is made on or after October 1, 2018 and before October 1, 2019:
Origination Fee: 1.062%
Net Fee of 1.062% is deducted from the amount borrowed.

Interest Rate Reduction Interest rate reduction: You might be able to get a 0.25% rate discount as a repayment incentive for automatic payments when you use the electronic debit account (EDA) option to make payments on your loan.
  Click here for calculator.

Disbursement of Loans: Your loan is for a full academic year and a disbursement will be made at the beginning of each term.

Repayment of Loans: When you graduate, drop below half-time, or withdraw from Barnard College, you will receive a six-month grace period for your loans. Once your grace period ends, you must begin repaying your loan.

You may choose to pay interest on your Direct Unsubsidized loan while you are in school. If you choose not to pay the interest while you're in school, it will be added to the unpaid principal amount of your loan, called capitalization.

Click here to review the Direct Loan Repayment plans.

2018-2019 Federal Direct Parent Loan for Undergraduate Students (PLUS) Procedures

Barnard College participates in the Federal Direct PLUS Loan Program. The Program is administered by Barnard College which works with the U.S. Department of Education to offer this loan. Detailed information regarding the Program can be found on the U.S. Department of Education's website and on the Federal Direct Loan PLUS Fact Sheet.

Parents can apply for a Federal PLUS loan to cover their parental contribution. Many families find PLUS an alternative to using lifetime savings and investments for educational expenses. Parents can borrow to cover educational costs for dependent undergraduate students who are enrolled at least half-time.

Loan Limits, Interest Rate, and Fees

Loan Limits You may borrow the full cost of education minus any other aid the student receives.
Interest Rate Fixed interest rate effective for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019:  7.6%
Loan Origination Fee

For loans where the first disbursement is made on or after October 1, 2017 and before October 1, 2018:
Origination Fee:  4.264%

For loans where the first disbursement is made on or after October 1, 2018 and before October 1, 2019: Origination Fee: 4.248%


Net Fee of 4.264% on the loan principal is deducted from each disbursement. Fees are deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

Sample Parent Loan (if first disbursement is made on or after October 1, 2017 and before October 1, 2018)

Requested Loan Amount for the academic year 2018-2019 = $10,000:
$10,000 X 4.264% = $426 (loan origination fee)
$10,000 (requested amount) - $426 (loan origination fee) = $9,574 (amount is split between the Fall 2018 term and the Spring 2019 term)

Steps to Apply:

1. Complete the 2018-2019 Free Application for Federal Student Aid (FAFSA), if you have not already done so. Barnard's Federal School Code is 002708.

2. Visit the Department of Education Direct Loan website www.studentloans.gov and click on Parent Borrowers.

3. Select Apply for a PLUS Loan.

4. Log In using your FSA ID.

5. Follow the instructions online and submit the application for a credit check.

6.The application will automatically be sent electronically to the Financial Aid Office for processing.

7. If you are approved and have not previously completed a Direct Parent PLUS Loan Master Promissory Note for Barnard, complete the MPN online.

8. Once the loan application approval and all required documents are received, the loan will be credited to the student’s account.

9. Loans for the full academic year will be disbursed directly to Barnard in two equal installments, half for each semester.

 

Repayment of Loan

  • Interest accrues after the first disbursement.
  • First payment is due 60 days after the second disbursement, unless eligible for deferment.  Your assigned loan servicer will contact you directly.
  • To defer repayment of your PLUS loan, review deferment and forbearance information on the Department of Education’s website.
  • Repayment period is normally 10 years (standard plan), however extended and graduated plans are also available. Click here to review Repayment Plans.

Options if Denied:

  • Appeal the decision. The parent may appeal the denial with the Direct Loan Origination Center at 800-557-7394.
  • Apply with an endorser (co-signer).  If you are denied a PLUS loan because of an adverse credit history, you may still be eligible to borrow a PLUS loan with a co-signer. The entire process can be completed online at www.studentloans.gov. Click on Parent Borrowers and click on Endorsers can Complete an Electronic Endorser Addendum and allow 20 minutes to complete the process in a single session.
  • Cancel PLUS Application.  If you do not have a co-signer, your dependent student is then eligible for additional Federal Direct unsubsidized loan funds. First-years and sophomores are eligible for up to $4,000 and juniors and seniors are eligible for up to $5,000.

Additional Information and Resources:

Websites for Borrowers:

Call Centers for Borrowers:

  • Direct Loan Origination Center: 800-557-7394 (to appeal denial of PLUS loan)
  • Direct Loan Consolidation Center: 800-557-7392
  • Federal Student Aid Information Center: 800-433-3243
  • Student Loan Support Center: 800-557-7394