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 Federal Stafford Loan. Parents also have a loan program available to them to help meet the cost of higher education, the Parent Loan for Undergraduate Students (PLUS).

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.

The Federal Stafford Loans (subsidized and unsubsidized) are the Department of Education's major form of self-help aid for students. Heidelberg participates in the Federal Family Education Loan (FFEL) Program. First-year students can borrow up to $3,500, sophomores can borrow up to $4,500 and juniors and seniors may borrow to $5,500. Four lenders are identified from which students are encouraged to choose from. All lenders are fully serviced through Great Lakes Higher Education Corporation (GLHEC). We have chosen these lenders based upon their high quality services, visibility in Ohio and the fact that they are fully serviced with GLHEC. Other lender requests will be processed. There are two types of Stafford Loans; subsidized and unsubsidized. A subsidized loan is awarded based on need. No interest is charged during the in-school period and for 6 months after graduation or below half-time status. The unsubsidized loan is not awarded based on need. Students are responsible for the interest that accumulates during the in-school and deferment period. The interest rate is 6.8% for unsubsidized and 6% for subsidized.

The Parent Loan for Undergraduate Students (PLUS) is available to parents of dependent undergraduate students. Borrowers are eligible to borrow up to the cost of education minus the student’s financial aid. Parents must have good credit. PLUS funds are disbursed through electronic funds transfer (EFT) to the school and directly applied to the student's account. Repayment begins 60 days after the second disbursement and is over a 10-year repayment schedule. The current minimal annual repayment is $600, or $50 per month. The interest rate is 8.5%. Heidelberg has identified four lenders from which parents are encouraged to choose from. Other lender requests will be processed.

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.