Educational Loan Programs

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: Once the loan is disbursed, interest accumulates on these loans. The federal government pays the interest while a 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: Once the loan is disbursed, interest accumulates on these loans. Students are responsible for paying the interest throughout the life of the loan. The interest can be paid while in school or the accrued interest will be capitalized (added to the principal balance). Unsubsidized Stafford 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.
• Direct Loans are processed by the Office of Financial Aid for the maximum amount you are eligible to receive. If you wish to borrow less, you must indicate the reduced amount Office of Financial Aid.
• Funds are posted to the student’s account each semester following enrollment verification, which generally occurs after the second week of the semester.

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

Interest rates for all Federal Direct Loans

The Federal Direct Parent PLUS Loan program provides a borrowing option for parents of dependent undergraduate students to help finance their student’s education.

New Parent PLUS loan borrowers

New borrowers will face annual and aggregate limits for the first time. Historically, Parent PLUS loans covered the full cost of attendance with no specific dollar cap.

• Annual limit: $20,000 per dependent student
• Aggregate limit: $65,000 per dependent student
• These limits apply regardless of prior forgiveness, repayment, or discharge status — prior loan cancellation does not reset a borrower’s eligibility toward these caps.

Legacy Parent PLUS borrowers

Applies to borrowers whose first Parent PLUS loan was disbursed before July 1, 2026.

• May continue borrowing up to the student’s full Cost of Attendance (COA) minus other aid, for the lesser of three academic years or the student’s expected time to credential.
• The dependent student must remain continuously enrolled in the same program.

Important points to note:

• A parent can apply for the Parent Plus Loan and complete the Parent Plus Master Promissory Note (MPN) at https://studentaid.gov/plus-app/.
• Repayment begins after the loan is fully disbursed; however, deferment options are available to delay repayment.
• This is a credit-based loan; parent must pass a credit check, which is valid for 180 days.
• Interest rate is fixed, and there is a fee deducted from every disbursement.
• Interest accrues from the first date of disbursement.
• There is no prepayment penalty.

Parents denied a Federal Direct Parent PLUS Loan will be offered the option to appeal or apply with a credit-approved endorser. However, your student will be offered additional Unsubsidized Loan if your Parent PLUS Loan is denied and not appealed. The maximum of $4,000 year one and two and $5,000 year three and four can be offered. Parents will need to apply each award year and receive a denial before the additional loan can be offered to your student.

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 minus 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.

Students intending to borrow a Graduate PLUS Loan will need to complete Graduate PLUS Application as well as the Graduate Plus Master Promissory Note (MPN)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.

Important points to note:

• Repayment begins after the loan is fully disbursed; however, deferment options are available to delay repayment.
• This is a credit-based loan; students must pass a credit check, which is valid for 180 days.
• Interest rate is fixed, and there is a fee deducted from every disbursement.
• Interest accrues from the first date of disbursement.
• There is no prepayment penalty.

Students denied a Federal Direct Graduate PLUS Loan will be offered the option to appeal or apply with a credit-approved endorser.

Private Education Loans are another option to consider to help finance your education after federal, institutional, state and outside aid sources have been exhausted. Most lenders require a credit worthy co-signer for the student borrower. There are also private education loan options for parents. We encourage you to only borrow what you need and to understand the terms and conditions of each loan option before you borrow.

Champlain College does not promote or endorse any private education loan lender. To help guide you, Champlain College has created a loan comparison tool to help you compare and select the private education loan that best meets your needs and repayment terms.

ELMSelect is serviced by a not for profit organization that offers neutral lender product comparison tool allowing you to compare some of the historical list of lenders Champlain College students have used. This is not an inclusive list, and you are welcome to borrow from any lender of your choosing.

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