Federal Direct Loan Information

At BU, students have a number of borrowing options available to them. Please review the information below so that you can decide what options are best for you.

Federal Direct Loans

Federal Direct Loans are low-interest loans for students and parents to help finance the cost of education at the post-secondary institution. Under the Federal Direct Loan Program, students work with the Office of Financial Aid Office in conjunction with the U.S Department of Education to obtain these loans.

Benedictine University is Title IV funded institution and a participant in the Federal Direct Student Loan Program. Federal financial aid is available to those who apply and qualify via the Free Application for Federal Student Aid (FAFSA).

The Federal Direct Loan Program is a program in which low-interest loans are made during the time a student is enrolled at least half-time in a degree-seeking program. Borrowers of Federal Direct loans benefit from a stable source of funding as loans are disbursed directly from the Department of Education and later managed by a single servicer.

As part of your offer notification, Benedictine University will notify you of your student loan eligibility according to the results of your FAFSA.

  • Federal Direct Subsidized Loans are based on financial need. The federal government “subsidizes” the loan by paying any accrued interest while the student is enrolled at least half-time.
  • Federal Direct Unsubsidized Loans are low interest loans that are not based on financial need. The student is responsible for paying the interest from the date the loan is disbursed; however they may choose to defer these payments while they are in school.

Both subsidized and unsubsidized loans are eligible for payment deferment while the student is enrolled at least half-time. For further information on Federal Direct Loans, including origination fees, interest rates, click here: Federal Student Loan Programs

STEPS TO BORROW

After completing the FAFSA, if you are a first-time Federal Direct Loan borrower, you must complete the following in order for federal funding to be disbursed:

  • Complete Federal Direct Master Promissory Note (MPN)
    The subsidized/Unsubsidized Master Promissory Note is a legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan servicer.
  • Complete Loan Entrance Counseling
    The federal government requires you to complete Entrance Counseling to ensure that you understand the financial responsibilities and obligations you are accepting.

Further information on federal student loans, visit Federal student loans

Federal Direct PLUS Loans for Parents

The Department of Education offers PLUS loans to eligible parents of dependent students. Only biological parents, step parents, or adoptive parents of dependent, undergraduate students are eligible to participate in the program. Parents are able to borrow up to the cost of attendance (calculated by the school) minus any other financial aid received.

NOTE: The parent is the borrower of the Parent PLUS loan. Unlike federal direct subsidized loans, these loans are credit-based rather than need based, and loans are subject to credit approval.

Students and parents must complete the FAFSA in order to receive a Federal Direct PLUS Loan. Before Direct PLUS Loan can be disbursed, the below steps must be completed.

  • Complete a Federal Direct PLUS Loan MPN
      This Master Promissory note explains all of the terms and conditions and constitutes your legally binding agreement to repay all loans that are received under the Federal Direct PLUS Loan.
  • You will have an opportunity to complete the Direct PLUS Loan Request after you complete the Direct PLUS Loan MPN.

For further information on Federal PLUS Loans, visit Federal Direct PLUS Loan Application

Federal Direct PLUS Loans for Graduate Students

The Department of Education offers PLUS loans to eligible graduate students. Students are able to borrow up to the cost of attendance (calculated by the school) minus any other financial aid received.

Students must complete the FAFSA in order to receive a Federal Direct PLUS Loan. Before a Direct PLUS Loan can be disbursed, the following steps must be completed.

STEPS TO BORROW

  • Complete Federal Direct Master Promissory Note (MPN)
    The Subsidized/Unsubsidized Master Promissory Note is a legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan servicer.
  • Complete a Graduate PLUS MPN
    The Graduate/Professional PLUS Master Promissory Note (MPN) is a legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan servicer.
  • Complete Loan Entrance Counseling
    The federal government requires you to complete Entrance Counseling to ensure that you understand the financial responsibilities and obligations you are accepting.

Further information on federal student loans, visit Federal student loans

Private Loans

Private loans, also called alternative or third-party loans, are credit-based loans offered by private lenders such as banks and other financial institutions. Eligibility for most of these loan programs is based on the creditworthiness of the borrower and may require the assistance of a parent or another credit-worthy co-signer.

Private loan programs can assist with bridging the gap between the cost of attendance (COA) and the financial aid awarded. These loans are allowed to cover the cost of tuition and other school-related expenses, up to the federal COA allowance for the academic year. Benedictine does not keep a preferred lender list as interest rates and loan terms change frequently.

For more information, see our Private loan comparison tool.

 

Managing Your Borrowing

We encourage students to borrow the least amount possible and to use Benedictine University’s Business Office’s Payment Options to avoid borrowing or to reduce their overall student debt.

Student may track their borrowing history at NSLDS Student Access. Loan disclosure information is provided by the Department of Education when students sign the Master Promissory Note.

Students can explore repayment options at studentaid.gov

Office of Financial Aid
BENEDICTINE UNIVERSITY
Lownik Hall - Main Floor
Monday - Friday
8:30 a.m. - 5:00 p.m.
Email: financialaid@ben.edu
Phone: (630) 829-6100
Fax: (630) 829-6101