Loans

Through the Federal Direct Loan Program, borrowers receive federal loan funds directly from the U.S. Department of Education. There are two types of Federal Direct Loans:

• Subsidized: The federal government pays the interest on this loan while the student is enrolled at least half-time or during times of authorized deferment. Direct Subsidized Loans are awarded to undergraduate students based on financial need and grade level.
• Unsubsidized: Unsubsidized: Students are responsible for paying the interest that accumulates after the loan has disbursed. The interest can be paid while in school or the accrued interest will be capitalized (added to the principal balance). Unsubsidized Direct Loans are awarded based on grade level and financial need is not considered.

Important points to note:

• Repayment begins six months from the date of graduation, full withdrawal or enrollment less than half-time.
• A number of repayment plans are available.
• There is no prepayment penalty.
• Interest rates for all Federal Direct Loans can be found at https://studentaid.gov/understand-aid/types/loans/interest-rates

New Direct Loan borrowers at Champlain College must complete a Master Promissory Note (MPN) and Entrance Counseling online at studentaid.gov .

The Federal Direct Parent PLUS Loan program provides a borrowing option for parents of dependent undergraduate students to help finance their student's education. The maximum amount a parent can borrow is the cost of attendance less other sources of financial aid. The student's award letter will indicate the maximum amount eligible. This amount can be reduced or declined; no parent is required to borrow a Federal Direct PLUS Loan.

• The funds are borrowed directly from the U.S. Department of Education.
• This is a credit-based loan.
• Interest rates for all Federal Direct Loans can be found at https://studentaid.gov/understand-aid/types/loans/interest-rates
• Repayment begins after the loan is fully disbursed; however, deferment options are available to delay repayment.
• There is no prepayment penalty.

To borrow through the Federal Direct Parent PLUS Loan program, the parent must pass a credit check, which is valid for 180 days. Parents without adverse credit will be approved for the loan. Adverse credit is defined by regulation as: 90 days or more delinquent on any debt or having a credit report that shows a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt, during the five years preceding the date of the credit report. Parents denied a Federal Direct Parent PLUS Loan will be offered the option to appeal or apply with a credit-approved endorser.

Parents intending to borrow a PLUS Loan will need to complete a Master Promissory Note (MPN) and PLUS Application online at studentaid.gov. In subsequent years, only the PLUS Application will need to be completed; the MPN is valid for 10 years after a loan has been issued from it.

The Federal Direct Graduate PLUS Loan program provides a borrowing option for graduate students to help finance their education. The maximum amount a graduate student can borrow is the cost of attendance less other sources of financial aid. The graduate student's award letter will indicate the maximum amount eligible. This amount can be reduced or declined; no student is required to borrow a Federal Direct Graduate PLUS Loan.

• The funds are borrowed directly from the U.S. Department of Education.
• This is a credit-based loan.
• Interest rates for all Federal Direct Loans can be found at https://studentaid.gov/understand-aid/types/loans/interest-rates
• Repayment begins after the loan is fully disbursed; however, deferment options are available to delay repayment.
• There is no prepayment penalty.

To borrow through the Federal Direct Graduate PLUS Loan program, the student must pass a credit check, which is valid for 180 days. Students without adverse credit will be approved for the loan. Adverse credit is defined by regulation as: 90 days or more delinquent on any debt or having a credit report that shows a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt, during the five years preceding the date of the credit report. Students denied a Federal Direct Graduate PLUS Loan will be offered the option to appeal or apply with a credit-approved endorser.

Students intending to borrow a Graduate PLUS Loan will need to complete a Master Promissory Note (MPN) and Graduate PLUS Application online at studentaid.gov. In subsequent years, only the Graduate PLUS Application will need to be completed; the MPN is valid for 10 years after a loan has been issued from it.

Private loans are non-federal, credit-based education loans borrowed from a private lending institution that must be repaid. The loans are typically issued in the student's name with a required cosigner. The maximum amount a student may borrow is the cost of attendance less any other financial aid, or the maximum limit established by the lender.

Families are encouraged to fully explore federal loan options (e.g. Direct Subsidized, Direct Unsubsidized and Direct Parent PLUS Loans) before securing a private loan due to the benefits and consistencies that the federal loan programs provide. Funds are posted to the student's account each semester following enrollment verification, which generally occurs after the second week of the semester.

Selecting a private education loan and lender is a personal decision. The Office of Financial Aid strongly recommends researching private education loans and lenders before completing a loan application online or signing any loan paperwork. Research should include a comparison of interest rates, fees, repayment terms, and the level of customer service provided by the lender.

Comparison chart for Direct Parent PLUS and Private Educational Loan

Private Loan Self-Certification Form

Loan Entrance Counseling

New students and first-time borrowers of Direct Student Loans are required to complete entrance counseling in order to receive the loan funds. The online entrance counseling can be completed at studentaid.gov . The Office of Financial Aid notifies students of this requirement by sending an email to their Champlain email account.

All federal student loans obtained by a student or parent are required to be reported to, and tracked on, the National Student Loan Data System (NSLDS). NSLDS loan records are accessible to all authorized NSLDS users, including schools, student loan guaranty agencies, lenders, federal agencies and other authorized users like our Center for Financial Literacy. Through our InSight Program, Champlain students are exposed to a wealth of financial information including student loan management.

Loan Exit Counseling

When a student with a Direct Student Loan graduates, drops below half-time enrollment or withdraws, they will receive an exit counseling packet in the mail and will be required to complete exit counseling. The online exit counseling can be completed at studentaid.gov . Students may access their federal loan records at the National Student Loan Data System (NSLDS).

Students with federal education loans must be enrolled at least half-time to receive loan funds and to continue to qualify for in-school loan deferment. For financial aid purposes, half-time enrollment for undergraduate students is six credits per semester. Half-time enrollment for graduate students is three credits per semester.

The average federal loan debt for 2020-2021 graduates of Champlain College was $26,845 for undergraduate students and $32,395 for graduate students.