Federal Direct Student Loan/Federal Direct Parent (PLUS) Loan Programs
Students who are enrolled on at least a half-time basis (6 credits per semester) may borrow under the Federal Direct Student Loan Program to assist with educational expenses. Applicants who meet federal eligibility requirements will receive a “subsidized” loan whereby the interest payments will be made by the federal government until the student is graduated or leaves school for any reason. Applicants who do not qualify for federal interest subsidy will receive an “unsubsidized” loan whereby the interest payments must be paid by the student. In both cases, the principal balance of the loan is deferred until the student is graduated or leaves school for any reason.
Parents of undergraduate students may borrow under the Federal Direct Parent Loan (PLUS) Program to help cover educational expenses. Under the Federal Direct PLUS Program, parents can borrow up to a maximum of the cost of attending Marywood University less any financial aid received by the student. Repayment of both principal and interest usually begins sixty (60) days after the funds are disbursed.
Alternative Loan Application Process
There are a number of lending institutions that have developed Alternative Loan programs to assist students in meeting educational costs. These Alternative Loans are in addition to the Federal Direct Student Loan and Federal Direct PLUS Loan programs sponsored by the federal government. A listing of current Alternative Loan options is available from the Office of Financial Aid webpage or the Cashier’s Office at Marywood.
Borrower-Based Academic Year Policy
Marywood University uses the Borrower-Based Academic Year policy for the processing of all student loan applications. This policy is as follows:
The Borrower-Based Academic Year is individualized for each borrower and may begin at any time within the school’s scheduled academic year based on the student’s start date in his/her program of study. The Borrower-Based Academic Year must meet the statutory requirements of an academic year or its equivalence. Equivalence for a Borrower-Based Academic Year at a term-based school is determined in two steps:
- The school counts the number of terms in its scheduled academic year. The total of such terms then represents the minimum number of terms that must be included in a Borrower-Based Academic Year. At Marywood University, this number is two. A summer term falling outside the normal Scheduled Academic Year may be counted as one term in a Borrower-Based Academic Year. At Marywood University, a Borrower-Based Academic Year may consist of any of the following:
- Fall and Spring semesters
- Summer and Fall semesters
- Spring and Summer semesters
- The school must include in the Borrower-Based Academic Year only those terms in which it is or was possible for the student to enroll on at least a half-time basis.
IMPORTANT: In your best interest, Marywood University urges you to use discretion in borrowing money for school. In signing the loan application/promissory note, you are making a commitment to repay that loan. If you should default on your loan, the federal government can sue for collection, attach your wages, and/or withhold income tax refunds. In addition, your future credit rating will be affected. Therefore, borrow only those funds that are absolutely necessary for your educational expenses. All borrowers are required by Federal Law to complete an exit interview with the Office of Financial Aid prior to graduation, withdrawal, or leave of absence from Marywood University.
Residents of Pennsylvania can apply for a PHEAA State Grant through the Pennsylvania Higher Education Assistance Agency (PHEAA), Harrisburg, PA. By completing the steps outlined under “Application Procedures” eligible students will be processed for a PHEAA State Grant and notified by PHEAA of their status. Residents of other states should follow the State Scholarship/Grant application procedures established by their respective State Higher Education Assistance Agency.