After completing a Free Application for Federal Student Aid or FAFSA, all first-time Direct Loan student borrowers will be required to sign a Master Promissory Note (MPN) and Entrance Counseling (EC). The MPN is a legal document where a student promises to repay his / her loan(s) and any accrued interest and fees to the U.S. Department of Education. The Entrance Counseling will help to explain what a loan is, how interest works, options for repayment and how to avoid defaulting on a loan. Both the MPN and EC will also explain the terms and conditions of the loan, which we advise you read and understand prior to signing.

Both requirements can be completed online at  www.studentaid.gov by signing in with your StudentAid.gov account. You will also receive instructions and reminders from the Office of Financial Aid on the steps needed to complete these two requirements. Students can use the Student Aid Portal on our website to keep track of any outstanding requirements for financial aid. If you have any questions please do not hesitate to contact our office at (717) 361-1404 or  finaid@etown.edu.

Subsidized Loans are available to undergraduate students with financial need. The interest does not accrue on the Subsidized loan until the student graduates or leaves the school for any reason.

With Unsubsidized Loans, the interest will accrue on the loan upon disbursement. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan). However, no principal payments are due until the loan enters official repayment (6 months after graduating or leaving school).

When looking at loan financing options, students should always start with the Federal Direct Loan program. The Direct Loan Program is the federal government's primary loan program and accounts for more financial aid dollars in our nation than any other source. Maximum annual loan limits are determined by the federal government and apply to all colleges equally. For Dependent students who borrow the annual maximum Federal Direct Loan each year and graduate in four years, their cumulative Direct Loan borrowing will equal $27,000.

Dependent Students:

First-Year: $5,500 – up to $3,500 in subsidized if eligible based on financial need.

Sophomore: $6,500 – up to $4,500 in subsidized if eligible based on financial need.

Junior: $7,500 – up to $5,500 in subsidized if eligible based on financial need.

Senior: $7,500 – up to $5,500 in subsidized if eligible based on financial need.

*If the student’s family is denied a Parent PLUS loan, student may be eligible for an additional $4000/$5000 based upon student’s earned credits.

Independent Students and Dependent undergraduate students whose families are unable to obtain Parent PLUS  Loans:

First-Year: $9,500 – up to $3,500 in subsidized if eligible based on financial need.

Sophomore: $10,500 – up to $4,500 in subsidized if eligible based on financial need.

Junior: $12,500 – up to $5,500 in subsidized if eligible based on financial need.

Senior: $12,500 – up to $5,500 in subsidized if eligible based on financial need.

Graduate: $20,500 unsubsidized

 

Dependent students may borrow a maximum of $31,000 through the Direct Loan program towards their undergraduate degree (no more than $23,000 can be subsidized).

Independent students may borrow a maximum of $57,500 through the Direct Loan program towards their undergraduate degree (no more than $23,000 can be subsidized).

Graduate students may borrow a maximum of $138,500 through the Direct Loan program. The graduate aggregate loan limit includes all federal loans received for undergraduate study. 

The type of Direct Loan a student qualifies to receive is calculated by a federal formula that takes into account the student's financial need and the cost of the college they are attending. The formula a school must adhere to is as follows:

Cost of Attendance minus Student Aid Index minus Other Financial Aid = Maximum Subsidized Loan (not to exceed annual subsidized limit)

Cost of Attendance minus Other Financial Aid = Maximum Unsubsidized Loan (not to exceed annual loan limit)

Interest paid on a Direct Loan may qualify as a  student loan interest deduction on a student's federal tax return. Use the Interactive Tax Assistant to help determine if you can deduct the interest you paid on a student or educational loan. IRS Publication 970 is another resource that students can refer to about other tax benefits for education such as the American Opportunity Credit or Lifetime Learning Credit.

Elizabethtown College Business Office Resources - Access your 1098-T and learn more about Tax Benefits for Education. 

The Public Service Loan Forgiveness Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) of qualifying payments under a qualified repayment plan. Use the PSLF Help Tool  to understand more about the PSLF Program, assess whether your employer qualifies for PSLF, and to find help in understanding which forms to submit in order to qualify.

The Federal government requires all graduating Federal Direct Loan borrowers to complete Federal Student Loan Exit Counseling. Exit counseling helps student loan borrowers prepare to repay their Subsidized, Unsubsidized, Perkins, and/or Graduate PLUS Direct Loans. Before completing this, please read the Exit Counseling - Guide for Etown Graduates to get a general overview of the exit counseling process. The  Loan Repayment Presentation  is a great resource to learn about available repayment plans.  Direct Loan exit counseling must be completed online by logging in to your StudentAid.gov account at  studentaid.gov .

Need help with finding the right repayment plan? Use the  Federal Student Loan Repayment Plans Loan Simulator  to learn how to make payments, what to do if you can't afford your monthly payments, or seeing what circumstances might result in a loan being forgiven, canceled or discharged.

For more information about federal student loans and repayment obligations, along with information regarding deferments, forbearances, and consolidation, students are encouraged to visit the  Student Loan Repayment website.

Students can also access a  detailed summary  about all of the federal student loans they have received and finding contact information for their assigned loan servicers. 

Students must complete Exit Counseling. Please contact us with any questions at finaid@etown.edu or (717) 361-1404.

• The borrower must be the parent (biological, adoptive, or sometimes stepparent) of a dependent undergraduate student enrolled at least half-time at an eligible school.
• The borrower should not have an adverse credit history.
• The borrower must meet general eligibility requirements for federal student aid.

Visit StudentAid.gov to apply for a Direct Parent PLUS loan. Make sure to have your StudentAid.gov account.

Forgot your login? Retrieve your username/password at StudentAid.gov.

1. Click on “Log in to start” to begin your application. Ensure it says, I am a Parent of an Undergraduate Student.
2. Complete the Parent PLUS application. There are three options to choose an amount:
   • Maximum eligibility: Based on the Cost of Attendance minus all other financial aid received.
   • Specific amount: Enter a specific amount you wish to borrow.
   • Leave blank: Notify Elizabethtown College Office of Financial Aid at a later time of the amount required.
3. The PLUS loan borrower will receive an immediate credit decision after the application.
4. If approved, all first-time PLUS loan borrowers must sign a Master Promissory Note (MPN).

If Denied, Choose One of the Following Options:

• Add an Endorser to the application.
• Appeal the denied credit decision with the Department of Education.
• Allow the student to borrow an additional Direct Unsubsidized Loan:
  • 1st and 2nd Year: $4,000
  • 3rd and 4th Year: $5,000

Note:

• All Parent PLUS loan applicants who have obtained an Endorser or documented extenuating circumstances in an appeal to the Department of Education must complete PLUS Credit Counseling.
• All Endorsers must complete the Endorser Addendum found online at StudentAid.gov. The Endorser will log in using their StudentAid.gov account. The Parent PLUS Loan borrower or Elizabethtown College can provide the PLUS Endorser Code to the Endorser.
• Appeals can be initiated online at StudentAid.gov. Log in using your StudentAid.gov account and select “Document Extenuating Circumstances.”
• Borrowers with endorsers or borrowers who were approved based on an appeal must complete a new MPN each year.

It is highly recommended that you apply for the amount needed for the full academic year (fall and spring semesters) to avoid completing another PLUS Loan Request that will trigger a second credit check for the spring semester. The credit check decision is valid for 180 days.

All Parent PLUS loans have an origination fee. Please remember to factor in the origination fee when applying for a specific loan amount.

Example Calculation:

If the required loan amount is $10,000 and the origination fee is 4.228%, divide the required loan amount by the difference of 100% minus the origination fee (4.228%) to find the total loan amount you need to borrow:

1. Determine the percentage to divide by:
   100% - 4.228% = 95.772% (or 0.95772 as a decimal)
2. Divide the required loan amount by the percentage:
   $10,000 / 0.95772
3. Result:
   Total loan amount needed: $10,441.47

For more information on Parent PLUS loans, visit StudentAid.gov.

If you have additional questions, please contact our office at (717) 361-1404 or finaid@etown.edu.

Your first step is to determine an amount that you will need to apply for in a private loan. We suggest you speak to our office before applying so we can properly advise on the amount you need or are eligible to receive.

The next step would be for the student borrower to secure a co-borrower. Most private student lenders will not extend credit to a college student unless they have a credit worthy co-borrower. This co-borrower can be anyone, but in most cases it is a parent or relative.

Now that you know what amount you need and you have a secured co-borrower, it is time to locate a private student loan lender.

At Elizabethtown College, we do not provide a recommended or preferred lender list, nor do we engage in preferred lending arrangements. We believe that students and families should explore a wide range of lending options and conduct their own research, rather than being limited to a select few lenders.

While we are unable to recommend specific lenders or favor one over another, our office remains available to offer guidance on private loans. If you have any questions or concerns, please feel free to contact us. We are here to provide information to the best of our ability and to help you determine if a potential lender is a legitimate student loan provider.

There are a variety of sources available to help you locate private loan lenders. Such as,

• Utilize the numerous search engines on the internet. Type in phrases such as "Private Student Loans", or "Alternative Student Loans." Beware of lenders promising things such as “fast cash” or “bad credit okay.” These are generally not reputable private student loan lenders.  
• Check with your local bank, or if you are a member of a Credit Union, see if they offer private loans or have suggestions to aid you in your search.
• Speak to friends or relatives who have borrowed private loans in the past for recommendations of loan programs they have utilized.

Once you have located several potential lenders we then suggest you compare them to see which lender might be the best for you. Create a spreadsheet to list all the benefits and drawbacks of lenders you have researched. Here are some factors you would want to consider when comparing these lenders.

• Interest Rates: What sort of interest rate range does the lender offer? What interest rate might I be charged? Is the interest rate fixed or variable?
• Fees: Compare what fees the lender might charge, such as origination or repayment fees.
• Repayment Options: What sort of different payment plans does the lender offer?
• Deferment of Payment: Are you able to defer the loan for payment while the student is in school? Be advised some lenders may require you to pay interest while you are still in school.
• Cosigner Information: Can the cosigner be released from liability of the loan after some amount of successful loan repayment?

Please remember that it is ultimately your responsibility to apply for a private loan and complete the application process prior to the billing due date and the start of classes. Our office recommends allowing at least 4-6 weeks for this process.

The private loan lender must obtain a signed, completed self-certification form from the loan applicant before initiating a private education loan. The applicant may obtain a copy of the self-certification form from either the private lender or  here  and submit it to Elizabethtown College for completion or confirmation.

If you have additional questions or concerns regarding private loan please do not hesitate to contact our office by phone at 717-361-1404, or via email at  finaid@etown.edu.