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Federal Student Loan Terms and Conditions    
Some federal loans are available based on financial need, while others are available regardless of family income. The award letter will itemize your loan eligibility. You may receive several different types of loans, all with different terms and conditions.
    
Federal Perkins Loans
Perkins Loans are for students with exceptional financial need. The University acts as the lender using a limited pool of funds provided by the federal government.

  • You have a 9-month grace period before repayment begins (after you graduate, leave school or drop to less than half-time enrollment status).
  • The interest rate is fixed at 5%.
  • You do not pay interest that accrues while you are in school or during your grace period.
  • You will make your payments to Maharishi University of Management serviced by University Accounting Service in Wisconsin.
During repayment our Perkins Office will assist you in every way possible. Email perkins@mum.edu
    
Federal Direct Subsidized and Unsubsidized Loans
Direct Loans are delivered through the US Department of Education’s Direct Loan Service Center. The University will guide you through the process of understanding the loan and applying for the loan.

  • You have a 6-month grace period (after you graduate, leave school or drop to less than half-time enrollment status).
  • Undergraduate student interest rates:
    • 3.4% fixed for subsidized loans first disbursed on or after July 1, 2010.
    • 6.8% fixed for unsubsidized loans.
  • Graduate student interest rate is 6.8% fixed for Direct Unsubsidized loans.
There are two types of federal Direct Loans, subsidized and unsubsidized.
    
Federal Direct Subsidized
  • Are based on financial need, which is determined by the information you submit on the FAFSA.
  • The government pays the interest that accrues while you are enrolled in school at least halftime, during your grace period, or during authorized deferments.
    
Federal Direct Unsubsidized Loans
  • Are not based on financial need and are available to all students (as long as you file a FAFSA and your financial assistance does not exceed your total cost of attendance).
  • You are responsible for the interest that accrues from the time you receive the funds until the loan is paid in full.
    
Federal Direct PLUS Loans
Federal Direct PLUS loans are federally insured loans available to graduate/professional students and parents of dependent undergraduates to pay educational expenses. These loans are typically available to pay unmet educational expenses and may be used as an alternative to private loans.

  • There is no grace period. Repayment begins 60 days after the loan funds are fully disbursed.
  • Forbearance is available to postpone payments for borrowers who are enrolled at least half time.
  • The interest rate is fixed at 7.9%
  • Borrower must have no adverse credit or may obtain an endorser
    
Private Loans
Private loans are not federally insured loans, but rather are offered by private lenders. You should exhaust your other financial aid options before accepting a private loan.

  • Your grace period and interest rate varies by lender.
  • You are usually responsible for paying interest that accrues from the time you receive the loan funds until paid in full.
  • Deferment and forbearance options are usually limited and vary by lender.
    
Application Process
The Financial Aid Office will provide instructions to you for the loans which display on your Award Letter. For each loan there will be a Master Promissory Note (MPN) for you to process at www.StudentLoans.gov and a loan entrance interview counselling in person upon arrival at the University. The entrance interview informs you of your rights and responsibilities for each loan. The entrance interview process will provide the opportunity to ask any questions you may have regarding the loans.

The Master Promissory Notes (MPN) does not have any loan amounts on the application. The loan application covers all loans borrowed at the University under that loan program for the length of your enrollment, or a maximum of ten years.

The amount you borrow will be shown on your Award Letter, confirmed by you at each semester registration, and you will also receive a notice from Student Accounts each time a loan is credited against your semester charges. You have the option to cancel a loan by notifying the Financial Aid Office within 14 days of the notice from Student Accounts.
    
Loan Disbursement Process
  • The loan amounts displayed on your Award Letter is the amount which is disbursed to the school. Some loans have additional fees which are kept by the lender before the loan is disbursed. These fees increase the amount you are borrowing. Examples of loans with additional fees are Federal Direct Stafford loans (0.5%) and Federal Direct PLUS loans (2.5%).
  • The amount listed on the award letter is the amount available to be applied toward the University charges. If the total amount of available financial aid exceeds the University charges, your award letter will display the amount of cash you will receive to use toward your out of pocket expenses.
  • We will provide instructions to you about which loan forms are required and where they are submitted. We will also contact you if any additional information or clarification is required.
  • After you have registered and begun attending classes, we will activate the disbursements, if you have completed all the other financial aid requirements, and credit the funds to Student Accounts, where your University charges and your disbursed financial aid is itemized.
  • If your award letter says “Refund after payment of charges,” this is the amount you are scheduled to receive after all the financial aid has been disbursed. If your award letter says “Payment by student,” then you must make tuition payments, and you will not have loan funds for books or other living expenses.
  • It usually takes two to six weeks for all the financial aid to be disbursed to Student Accounts, provided you have already met all the financial aid requirements which we have asked of you.
  • If there is a credit balance after the disbursement of all the semester financial aid, a check made out to you will be usually be available at the end of your first course (50% of your expected refund). The remaining 50% of your expected refund is avaialble after you have started attending courses totalling at least 12 units (full time).
  • You may pick up your refund check at the Enrollment Center.
  • Your federal student loans will be reported to, and tracked by, the National Student Loan Data System (NSLDS) which is accessible to you, guaranty agencies, eligible lenders, and eligible institutions of higher education as authorized users of NSLDS. Your access is through the use of your FAFSA pin, at www.nslds.ed.gov .
    
Federal Student Loan Terms and Conditions
The following are links to the actual loan applications so that you may review the terms and conditions of each loan:
For more information about financial aid, contact us at finaid@mum.edu or 641-472-1156.


 
 
 
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