Student Loans
Goshen College participates in the Federal Direct Student Loan Program, which makes for a simple process of applying for and receiving federal student loans. To be eligible for a Federal Direct Student Loan, students must file the FAFSA. The Student Financial Aid Office will indicate each student’s eligibility for the federal direct loans on the student’s Financial Aid Award. First-year and transfer students will receive a paper financial aid award, and should sign and return that copy indicating how much, if any, of the federal direct loans they wish to borrow. Returning students will receive an email indicating the steps to view and accept their loans through the financial aid portal at MyGC.
Students who choose to borrow a Federal Direct Student Loan must complete a Master Promissory Note and Entrance Counseling, which can be done online at studentloans.gov. The Master Promissory Note and Entrance Counseling only need to be completed the first year that students borrow the Federal Direct Student Loan.
The Federal Direct Loan Program has two types of loans: Subsidized and Unsubsidized. The Subsidized Loan is need-based (based both on the FAFSA results and how much other aid a student is receiving), has a fixed interest of 5.50%, and there is no interest while the student is in school or in grace period. The Unsubsidized Loan is not need-based, has a fixed interest of 5.50% and the interest begins when the loan is disbursed to the student’s account. Both loans have a 1.057% origination fee that is deducted when the loan is disbursed to the student’s account. It is not uncommon for a student to have a mix of Subsidized and Unsubsidized Loans.
Below are the yearly loan limits:
| Year at GC | Limits |
|---|---|
| First-year (0-29 credits) |
$ 5,500 (maximum of $3,500 Subsidized) Independent students can get an additional $ 4,000 |
| Sophomore (30-59 credits) |
$ 6,500 (maximum of $4,500 Subsidized) Independent students can get an additional $ 4,000 |
| Junior & Senior (60 credits until graduation) |
$ 7,500 (maximum of $5,500 Subsidized) Independent students can get an additional $ 5,000 |
PLUS Federal Loans
Parents of dependent students can take out loans to supplement their children’s aid packages. The federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student’s financial aid package, up to the full cost of attendance. PLUS loans have a fixed interest rate of 8.05% and a 4.228% origination fee that is deducted when the loan is disbursed to the student’s account. Repayment begins after the loan is fully disbursed for the year, and the repayment term is up to 10 years. Parents also need to complete a Master Promissory Note before the money can be disbursed to their student’s account. To apply for a Federal PLUS Loan and complete the Master Promissory Note please follow the link below.
Complete Master Promissory Note, Entrance Interview, and Exit Interview
Students with federal loans are required to complete a Master Promissory Note and Entrance Counseling before the loans can be disbursed to their accounts. These only need to be completed the first year that students borrow the Federal Direct Student Loan.
Students are also required to complete Exit Counseling upon graduation, the student is no longer enrolled at Goshen College or the student drops below half-time. To complete these, please follow this link:
Alternative Loans
Private loans (also called alternative loans) should only be used after all grants, scholarships and federal loan options have been used or considered. Private student loans are based on credit and the interest rate is based on the credit of the borrower and co-signer. Students who wish to borrow a private loan need to initiate the loan application with a lender of your choice. Goshen College will process loans for any lender you choose. Goshen College adheres to the following loan code of conduct.
More information about private loans can be found on the Alternative Loans page.