LOANS
Loans can be very helpful for students and families in managing college costs. Many families find that loans are an useful and important resource because they help to spread the cost of education out over a longer period of time. We encourage students and families to carefully weigh the need for loans and to borrow only what they actually need. Loans must be repaid.
Quick Link to Apply:
Federal Direct Loans (Subsidized/Unsubsidized/Plus/Grad Plus)
Quick Link for More Information:
Preferred Private/Alternative Lenders
Dominican Transitions to Direct Lending
New Students
Stafford and PLUS Loan Instructions
As part of your 2010-11 financial aid package you were offered a Federal Direct Stafford Loan. In order to borrow through the Direct Loan Program you will need to complete a Master Promissory Note (MPN) and Entrance Counseling. Below are the steps on how to complete the process. Please complete this process as soon as possible.
NEXT STEPS!
Students
- If you expect to borrow a Stafford or Grad PLUS Loan for the 2010-11 academic year you will need to complete a Master Promissory Note (MPN). Stafford and Grad PLUS MPN’s can be completed online at www.studentloans.gov.
- As a new Stafford or Grad PLUS borrower you will also need to complete an Entrance Counseling at www.studentloans.gov
Parents
- Parents expecting to borrow through the PLUS Loan Program for the 2010-11 academic year will need to complete a credit check and sign a Federal Direct PLUS Master Promissory Note (MPN) at www.studentloans.gov.
- Direct Lending offers a reduced interest rate on Grad PLUS and Parent PLUS loans (from 8.5% to 7.9%), and an upfront interest rate reduction for the Stafford Loan programs.
- Please keep in mind that the Federal Direct PLUS Loan is subject to a net fee of 2.5% that is deducted from the requested amount. This means you need increase the amount you want to borrow by 2.5%. To calculate this simply divide the amount you need by .975. As an example, if you need $10,000 to cover the costs for the year you will need to request $10,257 (10,000/.975=10,257).
- Please request the yearly amount on the initial application.
We want to do everything we can to make this transition as easy as possible for you. If you have any questions about this process, please contact the Office of Financial Aid at 415 257-1350, or e-mail us at finaid@dominican.edu
Returning Students
Stafford and PLUS Loan Instructions
Beginning with the 2010-2011 Academic Year, in accordance with the Student Aid and Fiscal Responsibility (SAFRA) Act, Dominican University of California will make the switch to the William D. Ford Federal Direct Student Loan (Direct Loan) Program.
What does this change mean for you?
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Students:
- • Every RETURNING student will need to sign a new Master Promissory Note (MPN) for any Stafford or Grad PLUS Loan you expect to borrow for the coming 2010-11 academic year. Stafford and Grad PLUS MPN’s can be completed online at : www.studentloans.gov
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Parents:
- • Parents expecting to borrow through the PLUS Loan Program for the 2010-11 academic year will need to complete a credit check and sign a new application and Master Promissory Note (MPN) at : www.studentloans.gov
- Direct Lending offers a reduced interest rate on Grad PLUS and Parent PLUS loans (from 8.5% to 7.9%), and an upfront interest rate reduction for the Stafford Loan programs.
- Please keep in mind that the Federal Direct PLUS Loan is subject to a net fee of 2.5% that is deducted from the requested amount. This means you need increase the amount you want to borrow by 2.5%. To calculate this simply divide the amount you need by .975. As an example, if you need $10,000 to cover the costs for the year you will need to request $10,257 (10,000/.975=10,257).
- Please request the yearly amount in the initial application.
Consolidating Your Loans:
If you are expecting to borrow a Stafford or PLUS Loan for this coming year and also have Stafford or PLUS Loans from prior years, you will have at least two lenders to repay when you graduate; your selected private lender and the federal government. The Direct Lending Consolidation program offers a way for you to combine both loans into one consolidation loan with one point of repayment. This loan consolidation program will be available to you once you graduate and begin thinking about repayment. There are advantages and disadvantages to loan consolidation and we recommend that you research this option carefully before proceeding. If you have questions about whether or not consolidation is right for you, please contact the Direct Loan Consolidation Loan Information Center at www.loanconsolidation.ed.gov.
Since 2008 Stafford lenders have sold some of their loans to the Department of Education in an attempt to build liquidity in the market and provide more loans to students. This is called the Loan Purchase Commitment (PUT) Program. As a result, continuing students may have already received communication from the Department of Education explaining the purchase. These loans are not considered Direct Loans but continue to be part of the Federal Family Education Loan Program (FFELP). It is important to note that loans borrowed in the future may not have the servicer as loans you have borrowed already. This means that when you begin to make payments on your loans after graduation you may be making multiple payments to multiple entities.
To keep track of your federal student loans, log onto to the National Student Loan Data System (NSLDS) at www.nslds.ed.gov. The PIN number that you used as your electronic signature for the FAFSA can also be used to gain access to NSLDS.
Loan Repayment:
Loans must be repaid. Therefore, we strongly encourage borrowers to carefully weigh the need for loans and to borrow only what is actually needed. We encourage you to estimate and plan your repayment obligations prior to borrowing. For federal student and parent loans, borrowers should be aware of the repayment options that are available. In addition, there are a number of deferment or forbearance provisions available once the loan is in repayment. For some qualifying majors and professions, such as teaching, federal and state loan cancellation provisions can also be beneficial.
Click here for estimate, repayment, deferment and forbearance options
Click here for Loan Forgiveness Program Information
In addition to these loans, please see the work study opportunities which are also available.
2009-2010 Loan Counseling Requirement :
Before you receive your first federal student loan disbursement (Stafford, Grad PLUS, or Perkins) you must complete the loan ENTRANCE counseling. This exercise takes about 10 - 15 minutes online and is an interactive way to learn about your rights and responsibilities as a borrower. Stafford and Grad PLUS counseling is open to anyone who would like to complete this process simply as a way to learn more about either loan.
Before or shortly after leaving school, you will be asked to complete loan EXIT counseling. This is a reminder of your rights and responsibilities, and also clearly sets expectations regarding payment. This is required any time a student ceases to be enrolled at least half time in a program leading to an approved degree or certificate.
Undergraduates and Graduate Students, please click here for Stafford Loan Counseling and then click on the Edte$t icon on the top right of the page.
