Loan Application Information
Federal Direct Loans
Federal Direct Loans are low-interest loans. Subsidized Loans do not accrue interest while the student is enrolled. Repayment begins six months after the student leaves school or graduates.
- Federal Subsidized Direct Loans are based on financial need. Interest does not accrue during periods of enrollment and grace periods.
- Federal Unsubsidized Direct Loans do not require financial need. Interest accrues during periods of enrollment and may be pre-paid with no penalty.
Federal Direct Loans are offered each year on your award letter. To complete the loan application process, the following steps are required:
- If you are a first-time borrower at Alverno College, you must complete Entrance Counseling which is required by federal law. This one-time exercise consists of reading through material and answering questions regarding the material you have read. You can complete Entrance Counseling online at www.studentloans.gov.
- If you are a first-time borrower at Alverno College, you must complete the Direct Loan Master Promissory Note (EMPN). The EMPN is effective for up to 10 years. A new EMPN may be needed if you have had loans go into repayment or other non-enrolled periods of time. A PIN (Personal Identification Number) is required to sign the application. The PIN is the same one used to sign the online version of the FAFSA. The Direct Loan Master Promissory Note is available online at www.studentloans.gov.
All borrowers who take a leave of absence, withdraw or graduate from Alverno College must complete an Exit Interview. Exit Interviews may be completed online at www.studentloans.gov.
The National Student Loan Data System (NSLDS) is a good place to view all Federal loans that you have received. To view this Web site, you will need to have a Personal Identification Number (PIN number) as described in the Part 1 of Applying for Financial Aid. To view your information online, visit NSLDS.
Federal Direct Plus Loan
The Direct PLUS Loan is a federally guaranteed loan program for parents to help pay for their daughter's educational expenses. Repayment begins 60 days after the last disbursement; the interest rate is fixed at 7.9% and has a 4% origination fee. Parents may complete the PLUS MPN online. Parents must complete the promissory note electronically with a PIN number. To obtain a PIN, apply at www.pin.ed.gov.
How to apply for a Federal Direct PLUS Loan
Parent borrowers for the Dependent Student on whose behalf the PLUS Loan is borrowed must complete a Federal Direct Loan Master Promissory Note. Parents may complete this note at www.studentloans.gov.
Note: If parents are determined to be ineligible to borrow through the Federal Direct PLUS program, the student may be eligible for Unsubsidized Federal Direct Loan. Please contact our office for further instructions.
Alternative Student Loans
Some students find that they need additional funds to meet their costs while attending school. One option available to students would be an Alternative Student Loan. Alternative Loans are nonfederal educational loans available from a variety of national lending institutions. These loans require that the borrower be credit worthy or have a credit worthy cosigner, as they go through a normal bank credit process. Students may apply for these loans at Alternative Loans. Please note that these loans take up to six weeks to process.
Title IV Loan Code of Conduct Policy
According to U.S. Department of Education regulations, schools participating in federal Title IV programs must publish, annually update and enforce a Code of Conduct regarding FFEL and private education loan programs. This Code of Conduct applies to all associates working in the Alverno financial aid office and the College at large. It is designed to prevent conflicts of interest between the responsibilities of the College and its employees and that of FFEL and private education loan programs.