Education Loans

In order to meet their educational expenses, students may wish to borrow monies through the Direct Loan Program. It is the student’s responsibility to complete a Master Promissory Note (MPN) with the Department of Education in order to obtain the loan. A MPN need only be completed once and is valid for up to 10 years period. In addition to the application, students must file the Free Application for Federal Student Aid (FAFSA) before a student loan can be processed. Information obtained from the FAFSA determines the amount and type of loan the student is eligible for.

First time loan borrowers are required to complete Entrance Counseling before the monies will be credited to the student’s account. Students must be enrolled in at least 6 or more credits to receive a Federal Direct Stafford Loan. If you are a first-year undergraduate student and a first-time borrower, your first disbursement can’t be made until 30 days after the first day of your enrollment period.

The Direct Stafford Loan falls under two distinct types:

1. Subsidized Stafford Loan: The government pays the interest for the student while they are enrolled in school.

2. Unsubsidized Stafford Loan: The student is responsible for paying the interest. Interest can either be paid quarterly or the student can request that the interest be capitalized.

Parents of dependent students may borrow up to the costs of education less any other financial aid through the Direct PLUS Loan program. Parents must complete a PLUS Loan Prequalification form and submit it to the Financial Aid Office so a credit check can be submitted. If approved, the parent may then apply online for the Federal PLUS Loan. If a parent is denied a Direct PLUS Loan, the student may then be eligible to borrow additional funds through their Direct Unsubsidized Stafford Loan or the parent may wish to appeal with the Department of Education or use an endorser.

Direct PLUS Loan repayment begins sixty days after fully disbursed. Parents may request a forbearance for up to four years while the student is enrolled for at least 6 credits and an additional six months after the student graduates. The school will apply the Direct PLUS Loan funds to the student’s tuition account to pay for tuition, fees, room and board and other school charges.

If borrowing a Direct Parent Plus Loan, please contact the Business Office for an estimated amount to borrow at (814) 886-6368 or BusinessOffice@mtaloy.edu.

All students and parents who borrow a Federal Direct Stafford Loan or a Federal Direct PLUS Loan will be reported to the National Student Loan Data System (NSLDS). This information will be accessible to guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

Mount Aloysius College wants students to be informed before borrowing a Private Alternative Loan. Private Alternative Loans are non-federal educational loans, through a private lending institution, typically issued in the student’s name and may require a co-signer. Each lender has different eligibility requirements which could include degree status, enrollment status, US citizenship, academic progress, etc. The loan rates, repayment terms, and conditions vary among lenders. Some lenders may also require payment of interest while students are in school. For more information please visit the Financial Aid page on the Mount Aloysius College website. Please contact the Business Office for an estimated loan amount to borrow (814) 886-6368 or BusinessOffice@mtaloy.edu. Please review our list of alternative lenders at ElmSelect.