Loans

Amount: First-Year Student-up to $3,500; Sophomore-up to $4,500; Junior/Senior-up to $5,500

Loan amounts are subject to a 1.057% loan processing fee.

• Loans made by the U.S. Department of Education to students who complete the FAFSA and demonstrate financial need.
• The interest rate is set each July.  For loans disbursed after July 1, 2023 the interest rate was 5.50%. This is a fixed interest rate for the life of the loan.
• The government pays interest on the borrower’s behalf until the repayment period begins.
• First-time borrowers must complete a Master Promissory Note and entrance counseling prior to having loan funds credited to their account.

Amount: First-Year Student-up to $5,500; Sophomore-up to $6,500; Junior/Senior-up to $7,500

Loan amounts are less any Subsidized Stafford Loan amount and are subject to a 1.057% loan processing fee.

• Loans made by the U.S. Department of Education to students regardless of financial need. Students must complete a FAFSA.
• The interest rate is set each July.  For loans disbursed after July 1, 2023 the interest rate was 5.50%. This is a fixed interest rate for the life of the loan.
• The student is responsible for interest that accrues while in school and may opt to make interest payments or defer all payments until the repayment period begins.
• First-time borrowers must complete a Master Promissory Note and entrance counseling prior to having loan funds credited to their account.

Amount: up to the Cost of Attendance less any other financial assistance

Review a list of lenders our students have used before. You are not required to use one of these lenders and we don’t rank or recommend specific lenders.

It is important to be an informed borrower. Loan provisions and requirements vary greatly and change frequently. You should contact the lender for specific information regarding the most current interest rate, fees, and eligibility requirements before taking a loan. You should carefully research the loan company you are considering doing business with. The Federal Trade Commission provides tips on items to look for when selecting a lender.

Once you have decided to apply for an alternative loan, allow 3-5 business days to have your application forwarded to our office. You will receive a confirmation email from the Financial Aid Office when your loan has been certified. If you have questions regarding your loan, contact our office either by emailing financialaid@albion.edu or calling 517-629-0440.

Amount: $100 up to the total cost of attendance

Loan amounts are less any other financial assistance the student is receiving and are subject to a 4.228% loan processing fee.

• Available to parents of college students. The student must file a FAFSA for the parent to be eligible.
• The interest rate is set each July. For loans disbursed after July 1, 2023, the rate is 8.05%. This is a fixed interest rate for the life of the loan.
• To qualify for a PLUS loan, you must not have an adverse credit history. If the credit check shows that you have an adverse credit history, there may still be options to qualify for a PLUS loan.
• You may request repayment of the loan be deferred during the application process or by contacting your loan servicer. Loans may be deferred while your student is enrolled at least half time and for an additional six months. If you do not request a deferment, repayment will begin once the loan has been disbursed (paid out).
• New PLUS applications may be completed at studentaid.gov. A new PLUS application would be completed for each academic year.
• When completing the PLUS application, the parent may indicate if any credit balance may be released to the student or should be returned to the parent. If the parent would like to change their initial response, the Parent PLUS Loan Refund Option Change Form must be completed and returned to the College.

Amount: up to the Cost of Attendance less any other financial assistance

Review a list of lenders our students have used before. You are not required to use one of these lenders and we don’t rank or recommend specific lenders.

It is important to be an informed borrower. Loan provisions and requirements vary greatly and change frequently. You should contact the lender for specific information regarding the most current interest rate, fees, and eligibility requirements before taking a loan. You should carefully research the loan company you are considering doing business with. The Federal Trade Commission provides tips on items to look for when selecting a lender.

Once you have decided to apply for an alternative loan, allow 3-5 business days to have your application forwarded to our office. Your student will receive a confirmation email from the Financial Aid Office when your loan has been certified. If you have questions regarding your loan, contact our office either by emailing financialaid@albion.edu or calling 517-629-0440.

• What is the minimum and maximum loan amounts offered per year and cumulatively?
• Is the amount you are eligible to borrow tied to school costs and other financial aid received?
• What is the approximate time it takes to obtain a decision for loan approval?
• Are there any minimum enrollment requirements? If so, what are they?
• What are the credit criteria for loan approval? Do they include a debt-to-income ratio or other income requirements?
• What is considered “poor credit,” and is no credit considered poor credit?
• What steps will the lender take to help qualify borrowers with poor credit?
• Are co-signers an option or a requirement? Under what conditions are they required?
• Is there an option to release the co-signer at a later date? If so, what are the conditions?

• What is the interest rate? What is it based on (i.e. Prime, T-Bill, etc.)?
• Is the interest rate fixed or variable? If variable, how frequently can the rate change?
• Is there a maximum amount the interest rate can increase with each change?
• Is the loan adjusted based on rate changes? For example, will interest be capitalized (added to the principal) or will the repayment term or amount be adjusted?
• What fees are charged? When and how are fees paid?
• What is the total cost of the loan over the life of the loan?

• What are the minimum and maximum repayment terms and payment amounts?
• Are there any restrictions or special conditions you need to consider?
• When does repayment begin? Is there a grace period before payments are expected? If so, how long is it?
• Can payments be deferred? If so, under what circumstances?
• Are payments required while you are in school?
• Are there any prepayment penalties?

After originating a loan, the lender can keep the loan until it is paid in full, sell it to a secondary market or keep it and contract with a servicer to manage the day-to-day details of tracking and collecting loan payments.

• When are the loan funds disbursed?
• Will you have online access to the application process and for account inquiry?
• Who do you contact for questions about your loans?
• Can the lender combine your private and federal loan payments into one bill?