Federal Student Loans
At Goodwin College, we understand a college education is crucial, and today, more than ever, a degree is a necessity. To assist in the financing of your education, Goodwin College offers a wide range of grants, scholarships, employment opportunities, and loans.
After completing a FAFSA application, any student taking out federal student loans, will need to complete loan paperwork. To do so, you will need to log onto: www.studentloans.gov (using your FSA ID) and complete:
- Master Promissory Note
- Entrance Counseling
This will take about 45-60 minutes to complete. **Note: Students will not be allowed to borrow student loans without these documents completed.
Based upon FAFSA information, students may be eligible for a variety of student loans. All Federal Student Loans are borrowed from William D. Ford Direct Lending. For the 2016-2017 aid year rates are as follows:
Federal Subsidized Loan - for undergraduates, the interest rate is 3.76% (as of July 1, 2016) after the student is no longer attending college at least half time. While the student is actively attending at least half time, the interest accrued is zero. However, there is an exception for first time borrowers of Direct Subsidized Loans as of July 1, 2013, which places a cap on the amount of time during which a student is eligible to receive Direct Subsidized Loans and the length of time during which the interest will be subsidized. You can find more information about the Direct Subsidized Loan 150% Time Limit here.
Federal Unsubsidized Loan - the interest rate for all students is 3.76% (as of July 1, 2016). Interest accrues on unsubsidized loans from the time the loan is disbursed by the school. If the borrower does not pay the interest as it accrues, it is capitalized (added to the loan balance). The interest is not paid by the federal government. This is the key difference between subsidized and unsubsidized student loans.
Federal PLUS loan - (dependent students parents or graduate professionals, approval based on credit rating) the interest rate is 6.31% (as of July 1, 2016).
- If the student’s eligibility for grants, loans, and/or scholarships does not cover any balance that may remain, a parent will be required to apply for a Federal PLUS loan. A parent will need to log into www.studentloans.gov (using their FSA ID from FAFSA) to complete the preapproval form. *Note: This does NOT mean that a parent is taking out a loan, this is only a preapproval to check eligibility.
- If Approved, the parents have the option of taking out the loan to satisfy any remaining balance.
- If Denied, the student will automatically be eligible for up to $4,000 of additional Unsubsidized Stafford Loan funds. In addition, the parent has the option to appeal the denial or reapply with an endorser.
- If the student’s eligibility for grants, loans, and/or scholarships does not cover any balance that may remain, the student can apply for a Federal PLUS loan by logging into www.studentloans.gov (using their FSA ID from FAFSA) to complete the preapproval form. *Note: This does NOT mean that a the loan is approved as this is only a preapproval to check eligibility./li>
- If Approved, the student has the option of borrowing up to the remaining Cost of Attendance (COA)./li>
- If Denied, the student has the option to appeal the denial or reapply with an endorser./li>
Privacy Act Disclosure Notice
The Privacy Act of 1974 (5 U.S.C.552a) requires that the following notice be provided to you. The authority for collecting the information requested on this form is §451 et seq. of the Higher Education Act of 1965, as amended. Your disclosure of this information is voluntary. However, if you do not provide this information, you cannot be considered for a Direct PLUS Loan. The information on this form will be used to determine your eligibility for a Direct PLUS Loan. The information in your file may be disclosed to third parties as authorized under routine uses in the Privacy Act notices called "Title IV Program Files" (originally published on April 12, 1994, Federal Register, Vol. 59 p. 17351) and "National Student Loan Data System" (originally published on December 20, 1994, Federal Register, Vol. 59 p. 65532). Thus, this information may be disclosed to federal and state agencies, private parties such as relatives, present and former employers and creditors, and contractors of the Department of Education for purposes of administration of the student financial assistance program, for enforcement purposes, for litigation where such disclosure is compatible with the purposes for which the records were collected, for use by federal, state, local, or foreign agencies in connection with employment matters or the issuance of a license, grant, or other benefit, for use in any employee grievance or discipline proceeding in which the Federal Government is a party, for use in connection with audits or other investigations, for research purposes, for purposes of determining whether particular records are required to be disclosed under the Freedom of Information Act, and to a Member of Congress in response to an inquiry from the congressional office made at your written request.
Because we request your social security number (SSN), we must inform you that we collect your SSN on a voluntary basis, but section 484(a)(4) of the HEA (20 U.S.C. 1091(a)(4)) provides that, in order to receive any grant, loan, or work assistance under Title IV of the HEA, a student must provide his or her SSN. Your SSN is used to verify your identity, and as an account number (identifier) throughout the life of your loan(s) so that data may be recorded accurately.
I have read the Privacy Act Disclosure Notice.
To be completed by the parent (s) of a dependent student who wish to borrow under the Federal Parental Loan Program for Undergraduate Student Program. Please login to complete the Parent Plus Master Promissory Note.