Denver Seminary > Student Loan Information

Student Loan Information

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Direct Subsidized & Unsubsidized Loans

The Federal Direct Loan program (Title IV) is the most popular student loan program available due to the Subsidized portion and the relatively low fixed interest rate.

Details:

6.8% fixed interest rate
1.0% origination fee (you will receive an upfront 0.5% rebate at the time of origination based on paying your first 12 monthly payments on time, so the assessed fee is only 0.5%)
Eligibility based on completion of the FAFSA and subject to annual Cost of Attendance budget limitations
Graduate-level limit of $20,500 per academic year
Payments deferred while enrolled at least half-time (5 credits/semester)
No prepayment penalties
6-month grace period upon leaving school or dropping below half-time

There are two types of Direct Loans: Subsidized and Unsubsidized

Subsidized loans are interest-free (interest paid by the federal government) while the borrower is enrolled at least half-time (5 credits/semester). Students are only eligible for subsidized loans if they demonstrate financial need according to the FAFSA. Eligibility will be determined by the Financial Aid Office using a calculation based on the student's estimated Cost of Attendance (COA) and Expected Family Contribution (EFC) as determined by the FAFSA. Per the Budget Control Act of 2011 this federal loan subsidy will be terminated effective July 1, 2012. As such, only Unsubsidized loans will be available at that time.

Unsubsidized loans are available to every student who completes a FAFSA. Interest begins accruing 120 days from the time of disbursement, however the student is not required to make any payments while in deferment status.

How do I apply?

Go to our Federal Loans page and complete all of the application steps.

Direct PLUS Loans

The Federal PLUS Loan program (Title IV) is a good secondary option for students who have exhausted Direct Subsidized/Unsubsidized Loan eligibility and need additional funding. PLUS loans fall under the Unsubsidized loan category, as they accrue interest upon disbursement for the life of the loan.

Details:

7.9% fixed interest rate
4.0% origination fee (you will receive an upfront 1.5% rebate at the time of origination based on paying your first 12 monthly payments on time, so the assessed fee is only 2.5%)
Eligibility subject to credit check and to annual Cost of Attendance budget limitations
Payments deferred while enrolled at least half-time (5 credits/semester)
6-month grace period upon leaving school or dropping below half-time*

How much am I eligible to take out?

*NOTE: Some PLUS loans may not have a grace period benefit, in which case repayment will occur 30 days after graduation or a drop below half-time status. Please contact your lender(s) directly for details. Your lender(s) and their contact information can be found on the National Student Loan Data System (NSLDS).

How do I apply?

Go to our Federal Loans page and complete all of the application steps.

NOTE: Since loan approval is based on a credit check students can also apply with an endorser (AKA "co-signer"), as that may increase the probability of approval. Simply have your endorser complete the "Endorse PLUS Loan" process on the studentloans.gov site. The applicant will need to give the endorser some basic information about the loan (i.e. the loan application number).

Alternative/Private Loans

Alternative loans (also known as private education loans) are typically offered by all major lenders. The terms and conditions of these loans may be less favorable than those of federal Title IV loans. Specifically, interest rates are generally higher and variable (as opposed to fixed).

Note: With a few exceptions, most alternative loans must be certified by the Financial Aid Office. Some students may not be eligible for alternative loans, as the total amount of financial aid must remain within the institution's estimated Cost of Attendance (COA).

How do I apply?

Visit the lender's website and/or contact the lender directly. Some examples of alternative loans include (listed in alphabetical order):

Chase Select Private Student Loan

Sallie Mae Smart Option Student Loan

Wells Fargo Graduate Loan

International Student Loans

While International students are not eligible to complete a FAFSA (and therefore not eligible for Title IV loans) there may be alternative loan options available. Many major lenders will lend to International students as long as the student has a U.S. citizen as a co-signer.

The following websites might be useful in discovering loan opportunities:

eduPASS!

InternationalStudent.com

InternationalStudentLoan.com

Global Student Loan Corporation

Estimated expenses and budget worksheets can be found on Step 2 of our International Master's Level Students page.

Definitions & Terms

Cost of Attendance (COA)

Every financial aid applicant is assigned an annual Cost of Attendance (COA), which will be published on the Award Letter. The COA represents the maximum amount of financial aid a student can utilize for an academic year.

A student's COA is calculated by the Financial Aid Office using figures from tuition/fees, estimated books/supplies, and estimated living expenses (as published by the state of Colorado). This amount generally cannot be changed unless the student qualifies for an adjustment. If the adjustment is approved, it will allow the student to utilize additional Financial Aid for that academic year up to the adjusted amount. The student must reapply for the adjustment each academic year, after the FAFSA is complete.

Origination Fees

The Deptartment of Education charges an origination fee of 1.0% for Subsidized/Unsubsidized loans and 4.0% for PLUS loans. Borrowers receive an upfront 0.5% rebate for Sub/Unsub loans and 1.5% rebate for PLUS loans at the time of origination, which is based on paying your first 12 monthly payments on time. Therefore the assessed fee is only 0.5% for Sub/Unsub loans and 2.5% for PLUS loans. Origination fees are withdrawn before the loan funds are sent to the school, which means that net loan amounts are typically 99.5% of gross Subsidized/Unsubsidized loan amounts and 97.5% of gross PLUS loan amounts.

In-School Deferment

Students who are taking at least 5 credits per semester/term (half-time status) are eligible for In-School Deferment. During In-School Deferment the student does not need to make any student loan payments. Subsidized loans do not accrue interest during this period. Once a student drops below 5 credits the 6-month grace period will begin.

Denver Seminary partners with the National Student Clearinghouse (NSLC) to automatically enter eligible students into deferment status. Enrollment status reports are submitted to the NSLC every two weeks, which is then communicated to the Department of Education.

If you believe the Dept of Ed is not receiving the appropriate communication from the NSLC, an In-School Deferment Request Form can be completed (sections 1-3) and submitted to the Financial Aid Office. The Financial Aid Office will complete section 4 and send it to the Dept of Ed.

For other types of deferment or forbearance, please vist the Repayment Options section on our Loan Management page.

Graduate-Level Aggregate Loan Limits

The following chart lists the most a graduate-level student can accrue in federal Sub/Unsub student loan funds:

Time Frame	Subsidized*	Additional Unsubsidized	Totals
Each Year	$8,500	$12,000	$20,500
Aggregate	$65,500	$73,000	$138,500

PLUS loans do not have aggregate limits, meaning that once a student has reached aggregate limits PLUS loans can still be utilized (assuming the student is eligible).

* Assuming the student is eligible, which is determined by the FAFSA. If student is not eligible, amounts will be unsubsidized by default.