Loan Information

Part of a student’s financial aid package from Heidelberg will include a student loan payable after graduation. Student loans are part of a student’s self-help portion of their award. The two loan programs available to Heidelberg students are the Federal Perkins Loan and the William D. Ford Direct Loan Program.

Federal Perkins Loan

The Federal Perkins Loan is a low-interest (5%) loan to help students with exceptional need. Heidelberg is the lender. The school makes the loan with federal funds and a shared contribution. Repayment begins and interest accrues nine months after graduation. Payment is made quarterly. Freshman and sophomore students receive priority with amounts varying up to $2,000 per year.

William D. Ford Direct Loan Program

Beginning with the 2010-2011 year, Heidelberg will process loans through the William D. Ford Direct Loan Program which offers guaranteed, low-interest loans directly through the Department of Education rather than a bank.

The direct lending program offers the same loan amounts for Stafford and PLUS loans previously provided by FFELP. The change to direct lending will not impact your ability to obtain funding as you may have done under the previous program, but you will need to complete new paperwork. Both new and continuing student and parent borrowers will be required to complete a new electronic master promissory note (MPN).
 
The new MPN for both Stafford and PLUS loans can be found at: www.dlenote.ed.gov. To complete the Stafford MPN, students will need their social security number, driver's license number, two references with complete addresses and phone numbers, and their PIN. It takes approximately 20 minutes to complete. We encourage all students to do so as soon as possible.

Direct PLUS Loan for Parents

The Direct PLUS Loan for Parents is a loan option available to parents with good credit. Parents can borrow up to the difference in the student's cost of attendance less any financial aid. The interest rate is a fixed 7.9% with payment beginning 60 days after the loan is fully disbursed. A payment delay may be requested while the student is enrolled at least half-time.
 
To apply for the Direct PLUS Loan, please use the following link: www.dlenote.ed.gov
For more information about the Direct Loan Program, go to www.direct.ed.gov

Private Student Alternative Loans

Education Loans help bridge the gap between the actual cost of education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete. Eligibility for private student loans often depends on your credit score.

It is better to apply for a private loan with a cosigner even if you could qualify for a loan on your own. Just applying with a cosigner usually results in a slightly lower rate, as such loans are not as risky for the lender. Moreover, the interest rates and fees are usually based on the higher of the two credit scores. So if your cosigner has a much better credit score than you, it could result in a much lower interest rate.

Alternative Loan Comparison and Application

Still have questions? Please visit the Student Loan FAQs page for more information.