Loans

Loans are borrowed funds that must be repaid, usually with interest.

Repayment of Loans Understanding Your Responsibilities

More than half of today’s college students graduate with some form of debt, so it’s important to understand the different kinds of debt, your options, and your responsibility upon graduation.

Because student loans are available through federal and private lenders, consider your options and your long-term goals before applying for one. For more detailed information on federal student loans, visit studentaid.gov/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: 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 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. The maximum amount a parent can borrow is the cost of attendance less other sources of financial aid.

    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.

  • 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 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 minus any other financial aid or the maximum limit established by the lender.

    Given the interest rates and loan provisions, families are urged to fully explore federal loan options, (e.g. Direct Subsidized, Direct Unsubsidized and Direct Parent PLUS Loans), before securing a private loan. 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.

    Private Loan Self-Certification Form

Loan Comparison Quick Reference

Type of Loan Student Level Borrower Lender Annual Loan Limits Eligibility FAFSA Requirement Type of Interest Repayment Repayment Penalty
Federal Direct Student Loans Undergraduate Student Federal government Cost of attendance minus other student aid Open to U.S. citizens or eligible non-citizens Required Fixed Begins 6 months after graduation or ending enrollment No prepayment penalty
Federal Direct PLUS Loans Undergraduate or graduate Parent of a dependent undergraduate student or graduate student Federal government Cost of attendance minus other student aid Open to U.S. citizens or eligible non-citizens Required Fixed Begins after the loan is fully disbursed; deferment options are available No prepayment penalty
Private Education Loans Undergraduate or graduate Student or parent (varies by lender) Private lenders and financial institutions Cost of attendance minus other student aid Open to anyone Not Required Varies by lender Varies by lender Varies by lender

Repayment of Loans

Repayment of Federal Direct Student Loans begins six months from the date of graduation, full withdrawal or enrollment less than half-time. This is called a grace period. During this period, the Office of Financial Aid will send you repayment information from your loan servicer, and you’ll be notified of your first payment due date.

Find your loan servicer

Create an online account with your loan servicer to check your balance, make payments, and much more.

Find your loan servicer

Understanding Your Responsibilities

Learn about your financial responsibilities regarding your student loans.

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

    The online entrance counseling can be completed at studentaid.gov.

    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.

    Champlain College offers students a wealth of information on financial literacy, including management of student loans, through our InSight Program.

  • Students intending to use a federal education loan must complete a Master Promissory Note (MPN). This legal contract explains the terms and conditions of your loan, and by signing it, you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.

    Your MPN is valid for a period of up to 10 years, and multiple loans can be authorized under an MPN during your time at Champlain College.

  • All Direct Student Loan borrowers who graduate, drop below half-time or end enrollment are required to complete exit counseling. When a student graduates, drops below half-time enrollment or withdraws, an exit counseling packet is mailed to the student.

    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.

    Students may access their federal loan records at the National Student Loan Data System (NSLDS).

    The online exit counseling can be completed at studentaid.gov.

  • A loan servicer is a company assigned to handle the billing and other services on your federal student loan. This company will work with you regarding repayment options and other responsibilities related to your federal student loans.

    After graduation, it is important that you make payments based on the schedule established with your loan servicer. Ensure your contact information is up to date , and if your circumstances change at any time during your repayment period, your loan servicer will be able to help.

Office of Financial Aid

Location

Physical Address:
Perry Hall
251 South Willard Street
Burlington, VT 05401

Mailing Address:
163 South Willard Street
Burlington, VT 05401

Office Hours

Monday–Friday
9:00 AM–4:30 PM

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