We view college loans as one part of an investment in a student's future. Listed below are some of the more popular loans available to Saint Anselm students and information on how to select the appropriate lender.
- Federal Subsidized and Unsubsidized Direct Loans
- Federal Parent PLUS Loan
- Alternative Loan
Most Saint Anselm students will borrow from the federal student loan programs. Approximately 79% of the 2018 graduating class borrowed an average of $24,866 of federal student loans (Direct and Perkins Loans) over their four years. The yearly loan limit for the Direct Subsidized Loan is $3,500 in the freshman year, $4,500 in the sophomore year, and $5,500 both in the junior and senior years. In May 2008 HR5715 passed and allowed students the eligibility to borrow an additional $2,000 of Unsubsidized Direct Loan per year.
The lender for the Federal Direct Loan Program and the Parent PLUS loan program is the U.S. Department of Education whereas students are able to select a lender of their choice for alternative loans.
Federal Direct Loans
The William D. Ford Federal Direct Loan Program consists of low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. To receive a Direct Student Loan the student must annually complete the FAFSA.
Federal Subsidized and Unsubsidized Direct Loans
The federal Direct Loans offer a low-cost resource that is federally protected, unlike alternative loans. There is no debt-to-income ratio required. A student may choose repayment options that meet their individual needs, including deferment options. We strongly recommend that a student take advantage of the federal loans before opting for alternative loans to save money in interest payments.
The federal government pays the interest on a subsidized loan while a student is enrolled, but does not do so on an unsubsidized loan. If a student receives an unsubsidized loan, they are responsible for interest during the in-school and deferment periods. The student may choose not to pay the interest while in school; however, capitalizing the interest will increase the overall loan principal in repayment.
Federal Direct Loan Requirements
Direct Loan Entrance Counseling - All new Direct Loan borrowers must complete entrance counseling before the school can make the first disbursement of your loan. This helps you to understand your responsibilities regarding your loan. The entrance counseling is online and takes approximately 30 minutes.
Direct Loan Master Promissory Note (select MPN for Subsidized/Unsubsidized loans) - To take out a Direct Loan for the first time, you must complete a Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). We ask that you complete the MPN online using the MPN Link above.
Log in with your Federal Student Aid ID and password to complete the above Federal Direct Loan requirements.
- Direct Loans offered will be canceled if Entrance Counseling and MPN are not completed. We will notify you in advance of our deadline.
- If you do not intend to utilize the Direct Loans offered, you must notify the Office of Financial Aid in writing.
Federal PLUS Loan (Parent Loan for Undergraduate Students)
The PLUS Loan is a federally guaranteed, low-interest loan for parents of dependent, undergraduate students.
How the PLUS Loan Works
Parents may borrow up to the cost of their student's attendance minus any other financial aid for which the student is eligible. If a parent desires this resource, the parent borrower must request the loan at studentaid.gov. The Office of Financial Aid will include this loan as part of the student's financial resources when all credit requirements are met. Only one parent needs to apply. For assistance in estimating the PLUS Loan amount use the Budget Worksheet found on the Resources: Links page.
If the PLUS loan request is denied and the parent chooses not to pursue the PLUS loan, the student may be eligible for an additional unsubsidized loan of $4,000 in the Freshman and Sophomore year and $5,000 in the Junior and Senior year.
PLUS Loan Requirements
Direct PLUS Master Promissory Note (select MPN for Parent PLUS Loans) -First time PLUS borrowers must complete a PLUS Loan Master Promissory Note (MPN). The MPN is a legal document. By completing the MPN you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s). You must complete the MPN online using the MPN Link above (parent borrower logs in with their parent Federal Student Aid ID and password). Please be aware that the Department of Education will perform a credit check on the borrower.
In addition to the PLUS Master Promissory Note, parent borrowers must complete a PLUS Loan Application each year. The application can be found by logging into https://studentaid.gov with the parent borrower's Federal Student Aid ID and password and selecting "Apply for Aid" and then select "Apply for a Parent PLUS Loan". This application will allow parent borrowers to indicate the amount of the PLUS loan. This application must be completed each year. Please keep in mind that the amount requested will be divided evenly between the two semesters.
Processing PLUS Loans
- Student and parent must complete and sign the FAFSA.
- Parent borrowers must complete the Direct PLUS Master Promissory Note at: https://studentaid.gov.
- Parent borrowers must complete the Direct PLUS application by selecting "Apply for Aid" and then selecting "Apply for a Parent PLUS Loan". This will provide the school with information about the amount that you are requesting as well as complete the required credit check. The Office of Financial Aid will certify the loan to the requested amount or the maximum amount allowed based on eligibility.
- If the parent borrower is denied the loan and wishes to appeal or challenge the decision, the borrower must specify that choice on the loan request.
- If denied the PLUS and the borrower wishes to discuss the denial or appeal the decision the borrower may contact the Department of Education at 800-557-7394.
- To pursue the loan with an endorser (cosigner):
- The endorser must apply at https://studentaid.gov (logging in with their Federal Student Aid ID and password).
- The endorser will need to complete the "Endorse a PLUS loan" section on the studentaid.gov website.
- The parent borrower for the endorsed loan must complete PLUS Credit Counseling at https://studentaid.gov
Alternative (Private) Loans
Students looking for additional financing after exhausting their federal loan eligibility, may want to consider private alternative loans. The terms and conditions of these credit-based private loan programs vary, and as such, students are encouraged to review the details of the programs before selecting a private loan program.
Applying for An Alternative (Private) Loan
Saint Anselm works with any participating lender. If a student chooses a private alternative loan, we recommend the student take that loan in the student's name with a parent or other eligible co-signer (generally required in the freshman year) to obtain the best interest rate. Eligibility for these loans depends on the credit-worthiness of the borrower and the co-signer(s). We offer two tools to assist with this process of pricing and selection: Credible and Elm Select Loan Comparison Tool.
Credible is a free online tool that allows students to compare personalized loans from multiple lenders. Students can analyze pre-qualified rates, terms and eligibility rules side-by-side in just a matter of minutes. Credible is not a lender or a bank.
ELM Select offers student the ability to compare and select the loan that best fits their needs in a different platform.
Families are encouraged to review all options carefully before considering a private alternative loan as the interest rate is often much higher than that of federal student loans. For assistance in estimating the amount of alternative private student loan to borrow, use the Budget Worksheet found on the Resources: Financial Aid Links page.
Private Loan Applicant Self-Certification Form
Private Loan Applicant Self Certification form (PDF/196KB)
Submitted to the lender, typically as part of their on-line application process. Regulations require all private loan borrowers to complete, sign, and return a Private Loan Applicant Self-Certification form to their lender before any funds may be disbursed to the school. This form was designed to assist students in making an informed decision about borrowing, giving students the opportunity to review information about their financial aid eligibility. This form may be part of the online application process with your lender, or it may be a paper form that you must submit to your lender. Your lender will inform you of their process. The Self-Certification form requires information about the borrower as well as the Cost of Attendance (COA) for the loan period covered by the loan. From the COA, you will deduct the amount of your estimated financial aid, and the amount remaining will be the total that you are able to borrow from your private loan lender.
Processing Alternative Loans
Due to increased requirements for processing alternative student loans, students are encouraged to begin the process early. Final approval for a private loan could take up to 30 days. To ensure that financing is in place when the first semester bills are due, it is important for the student to start the process as early as possible.
- Choose a lender for your alternative loan.
- Select a co-signer for your loan. This is generally a parent; however, any credit-worthy person may be your co-signer.
- Complete the loan application (generally online).
- Review the first disclosure statement provided by the lender outlining general terms of the loan.
- Complete the Self-Certification Form (provided by lender or see above).
- Review the second disclosure statement provided by the lender upon loan approval. The student must acknowledge and accept the terms provided.
- The Office of Financial Aid will certify the first private loan that we receive.
Saint Anselm College adheres to the NASFAA Code of Conduct and Statement of Ethical Principles based on the Higher Education Opportunity Act of 2008.
Historical Lender List
Saint Anselm students or their parents have borrowed a private loan from one of the the companies included in the link above. These loans are credit dependent and the student loans require an eligible co-borrower to co-sign the loan on their behalf as the average dependent student lacks the resources to pay for a loan of this nature until the student has a full-time job. Some loans require Satisfactory Academic Progress as a requirement. Interest rates depend on FICO score of the co-borrower (usually a parent) and the student.
The above link is a list of all of the companies through which our parents or students with an eligible co-borrower borrowed a private loan. We do not have a preferred lender list and a student and/or parent can use any of these or a different company. We recommend you shop for the best rates. There are tools such as Credible to assist you with this process.