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. Parents also have a loan program available to them to help meet the cost of higher education, the Direct PLUS Loan for Parents.

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.

To complete your Perkins paperwork:

Perkins Entrance Interview
Perkins Information Disclosure Form
Perkins Master Promissory Note

William D. Ford Direct Loan Program

Beginning with the 2010-2011 school year, Heidelberg will process loans through the William D. Ford Direct Loan Program. Direct loans are guaranteed, low interest loans for students. The lender is the Department of Education rather than a bank.

There are two types of Direct Loans: subsidized and unsubsidized. A Direct subsidized loan is need-based. No interest is charged while the student is enrolled at least half-time and for 6 months after. The interest rate for 2010-2011 is 4.5% and 3.4% for 2011-2012. A Direct unsubsidized loan is not based on financial need and interest is charged during the enrollment period. The interest rate is fixed at 6.8%.

Undergraduate Annual Loan Limits for Direct Subsidized and Unsubsidized Loans:

Aggregate Loan Limits:

To complete the Direct Loan paperwork, the following links will be available soon:

Direct Loan Entrance Interview
Direct Loan Electronic Master Promissory Note
Direct Loan Exit Interview

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 a Direct PLUS Loan, the following link will be available soon:

Direct PLUS Master Promissory Note

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. Please click on the link below:

Alternative Loan Comparison and Application

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