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: 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

Borrowing limits:

• 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 — an earlier loan being paid off or discharged doesn’t free up room under the new limit.

Legacy Parent PLUS borrowers

If you had a Parent PLUS loan disbursed for your student’s current program before July 1, 2026, you may borrow up to your student’s full cost of attendance, for up to three more years, as long as your student stays continuously enrolled in that same program.

How the loan works:

• Parents apply and complete the Parent PLUS Master Promissory Note (MPN) at studentaid.gov/plus-app/.
• This is a credit-based loan: the parent must pass a credit check, valid for 180 days.
• The interest rate is fixed. A fee is deducted from each disbursement, and interest starts accruing right away.
• Repayment begins once the loan is fully disbursed. Deferment options are available if you need to delay repayment, and there’s no prepayment penalty.

If your loan is denied:

Parents denied a Federal Direct Parent PLUS Loan can appeal or apply with a credit-approved endorser. If your loan is denied and you do not appeal, your student will be offered an additional Unsubsidized Loan up to $4,000 in years one and two, and $5,000 in their third and fourth years. A new loan application and denial is required each year; additional loans are not automatically awarded.

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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