Loans
Loans are a crucial part of many students' financial assistance packages. To find out more about what type of loans may best suit you and your family's needs, please review the information below. Once you have read through the pertinent information, we invite you to contact us if you have any questions.
Information for:
Students may borrow to fund their education expenses through two types of loan programs. The first of these programs, the Federal Direct Loan program, offers fixed low-interest rate loans to students without the need for a credit application or cosigner. These loans are issued directly from the federal government to the school and have fixed disbursement amounts. Students who complete the FAFSA are automatically eligible to receive Federal Direct Loans and will receive notification of their maximum eligibility in their financial assistance Statement of Award.
While we recommend all students take advantage of the Direct Federal Loan program, those seeking additional funds may wish to consider private student alternative loans. These loans may come from a variety of private lenders and have variable rates of interest. Alternative loans must be applied for separately, are subject to credit approval and often require students to apply with a credit-worthy cosigner. For a list of recommended lenders, please see the alternative student loan section below.
(Note: in addition to student loans, families may want to consider the Federal Direct Parent PLUS Loan. For more information regarding parent loans, please see the parent section below).
Federal Direct Loan Application and Completion Instructions
All Federal Direct loans are now administered directly by the federal government. New borrowers will be required to complete the steps listed below in order to receive Federal Direct loans in the academic year. To apply for a Federal Direct Loan, students must complete both federal Entrance Loan counseling (ELC) and a Master Promissory Note (MPN) with the Department of Education. Both the entrance loan counseling and the MPN can be completed online by visiting the Department of Education's website and following the steps listed below:
Sign In - You will need to sign into your account using your social security number, first two letters of your last name, date of birth, and your federal PIN. Your federal PIN should be the same as the PIN you used to complete the FAFSA. If you have lost or forgotten your federal PIN, you may retrieve it by visiting pin.ed.gov.
- Complete Entrance Loan Counseling- To complete this online counseling, click on the link titled "Complete Entrance Loan Counseling" follow the on-screen instructions.
- Complete the Direct Loan Master Promissory Note- After completing entrance loan counseling, return to your profile and select the link titled "Complete Master Promissory Note." Choose "Subsidized/Unsubsidized" and follow the on-screen instructions.
Please note that these processes must be completed in order to receive your loan. If you have a question regarding the loan application, entrance loan counseling process, or your award letter, please contact the Office of Financial Assistance at (919) 760-8565 or email at .(JavaScript must be enabled to view this email address).
Alternative Student Loan Applications and Information
A student may apply for an alternative loan from a number of lenders. Payments can typically be deferred until 6 months after graduation (just like the Federal Stafford Loans) and applications are most frequently completed online. If a surety is needed, a screen will pop up and inform you what steps to take next.
Steps to Alternative Student Loan Application:
- Review your award letter to determine how much you will need to borrow. The maximum amount you can request is located next to the "PLUS/Alternative Loans" section of your statement of award.
- Choose a lender and select "Apply Now" to begin the alternative loan application process and complete a Master Promissory Note (MPN). (See the preferred lender list below).
Preferred Lenders
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Wells Fargo Lender Code: 807176 2013 Wells Fargo Application Disclosures Wells Fargo Rates- See attached PDF
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Sallie Mae Sallie Mae Rates- See attached PDF |
*Beyond the recommended lenders listed above, a wide variety of loans and lenders are available. Students and families are welcome to search, compare, and select the lender of their choice.
*Lenders are subject to change their terms and/or rates at any time. While Meredith College attempts to keep the information represented in these tables as accurate as possible, it is the borrower's responsibility to investigate the current benefits, fees, and terms of each lender prior to applying for a loan. Meredith College cannot be held responsible for any changes made by a lender that are not reflected in this comparison.
Federal Direct Parent PLUS Loan Application and Completion Instructions
Due to recent congressional legislation, all parent loans are now administered directly by the federal government. Parents who have loans through other lenders may continue to have those loans serviced by the lender of their choice, but all new parent PLUS loans must be issued by the Department of Education through the Federal Direct Loan program. Additionally, the federal government now requires that all PLUS applicants complete the Free Application for Federal Student Aid in order to receive a parent PLUS loan. The Parent PLUS loan is available to fill out after June 1st, 2013 for the upcoming 2013-2014 school year.To apply for a parent PLUS for the academic year, please complete the steps listed below:
- Complete the FAFSA- Beginning in the 2011-2012 academic year, all PLUS applicants MUST complete the Free Application for Federal Student Aid. For instructions on completing the fafsa, click here.
- Sign In - Click the link to the left and sign in on the Federal Direct Loan website. You will need to sign into your account using your social security number, first two letters of your last name, date of birth, and your federal PIN. Your federal PIN should be the same as the PIN you used to complete the FAFSA. If you have lost or forgotten your federal PIN, you may retrieve it by visiting pin.ed.gov. Please note: You must sign in using your parent PIN. Do not sign in using the student's PIN or social security number.
- Select "Start PLUS Application Process" - After signing in, you will be brought to your home profile screen. From this screen, select the link titled "Start PLUS Application Process." (**Note, do not select the link to complete an MPN from the home screen. If you do so, you will skip the credit application step and your loan application will NOT be complete).
- Choose the "Parent PLUS " link and follow the on-screen instructions.
Graduate students seeking to receive loan funding must begin the application process by filing the Free Application for Federal Student Aid (FAFSA) by visiting the following link: http://fafsa.gov. By completing the FAFSA, all graduate students will automatically qualify to receive up to $20,500 per academic year in Federal Direct Loans. Students wishing to borrow more than $20,500 per year may apply for the additional funding through the Graduate PLUS loan program. Instructions for applying for each type of loan are listed below.
Federal Direct Loan Instructions
If you are seeking to borrow Federal Direct loans for the academic year, you will first need to complete the FAFSA at http://www.fafsa.gov. After completing the FAFSA, students will need to visit the Department of Education's Direct Loan website and complete the following steps:
- Sign In - You will need to sign into your account using your social security number, first two letters of your last name, date of birth, and your federal PIN. Your federal PIN should be the same as the PIN you used to complete the FAFSA. If you have lost or forgotten your federal PIN, you may retrieve it by visiting pin.ed.gov.
- Complete Entrance Loan Counseling- To complete this online counseling, click on the link titled "Complete Entrance Loan Counseling" follow the on-screen instructions.
- Complete the Direct Loan Master Promissory Note- After completing entrance loan couseling, return to your profile and select the link titled "Complete Master Promissory Note." Choose "Subsidized/Unsubsidized" and follow the on-screen instructions.
*Please note- To apply for a Federal Direct Loan, students must complete both federal entrance loan counseling and a Master Promissory Note (MPN) with the Department of Education. These processes must be completed in order to receive your loan. If you have a question regarding the loan application, entrance loan counseling process, or your award letter, please contact the Office of Financial Assistance at 919-760-8565 or email at .(JavaScript must be enabled to view this email address).
Federal Direct Graduate PLUS Loan Instructions
In order to receive a graduate PLUS loan for the academic year, students must first apply for and accept all Federal Direct loans available. If a student requires more funding than the $20,500 available through the Federal Direct loan, the additional funding may be applied for through the Graduate PLUS loan program by following the steps below:
- Sign In - You will need to sign into your account using your social security number, first two letters of your last name, date of birth, and your federal PIN. Your federal PIN should be the same as the PIN you used to complete the FAFSA. If you have lost or forgotten your federal PIN, you may retrieve it by visiting pin.ed.gov.
- Complete the Direct Graduate PLUS Loan Master Promissory Note- From your profile screen, select the link titled "Complete Master Promissory Note." Choose "Graduate PLUS and follow the on-screen instructions.
Federal Loan Consolidation Information
Frequently Asked Questions
Why do people consolidate their federal student loans?
Federal student loan interest rates are at an all time low. When consolidating student loans, you lock in the interest rate for the duration of the consolidation loan.
How is my interest rate calculated for a consolidation loan?
It is a weighted average of the interest rates on all of the loans to be consolidated and round up to the nearest 1/8 of 1.
Are there prepayment penalties?
There is no penalty for prepaying your consolidation loan at any time. In fact, every penny you pay over the amount owed each month is automatically applied towards the principal, NOT interest.
Are there any negative consequences to student loan consolidation?
Yes and No. If you take a longer amount of time to pay off your student loan debt, you will pay more interest over the course of loan repayment. However, because there are no prepayment penalties and it is a simple interest loan, if you continue making the same payments you were making prior to loan consolidation, you will not pay more in interest and pay off the loan even quicker than your previous loan.
Will I incur any fees and/or charges consolidating my student loans?
You will not incur any fees, costs, or charges for consolidating your student loan debt.
Can I refinance a consolidation loan?
Yes and No. The U.S. Dept of Education does not allow a borrower to refinance a consolidation loan. However, if you have additional federal loans not included into the original consolidation, those loans may be added and recalculated into a new Federal Consolidation Loan.
Am I still eligible for the same federal benefits?
Yes! Because student loan consolidation is a federal program, you are still entitled to benefits - such as deferment, forbearance, and tax-deductible interest. The loan is also government guaranteed as well as federally insured.
Additionally, if you decide to consolidate your Perkins Loan(s), you will lose the interest subsidy on this portion of your debt. However, because the interest rate on your Perkins Loan is 5%, the inclusion of the Perkins Loan(s) into your consolidation loan may have a positive impact on the calculated average used to determine the interest rate on your consolidation loan.
Is the interest rate on the consolidation loan fixed or variable?
Interest rate is fixed on consolidation loans, which means your interest rate will never change for the life of the loan, even if interest rates go up.
What loans are eligible for student loan consolidation?
Following is a list of eligible federal student loans:
- Subsidized Federal Loans & Guaranteed Student Loans (GSL)
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
- Direct Unsubsidized Consolidation Loan, including Direct PLUS Consolidation Loans
- Unsubsidized and Nonsubsidized Federal Loans
- Federal Nursing Loans
- Health Education Assistance Loans (HEAL)
- Federal Perkins Loans, formerly Nations Defense/National Direct Student Loans (NDSL)
- Federal PLUS (Parent) Loans
- Subsidized Federal Consolidation Loans
- Unsubsidized Federal Consolidation Loans SLS- Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students (ALAS) and Student PLUS Loans)
Is it possible to include private loans into my Federal Consolidation loan?
Yes and No. Private loans are not eligible for the FFELP Consolidation loan - however, non-Federal student loans can still count towards your cumulative loan balance, which enables one to extend the repayment term.
What consolidation loan benefits do my current lenders offer?
Check with your current lender to see what terms and repayment plans they can offer.
Top Ten Student Loan Tips for Recent Graduates
The Project on Student Debt recently released this helpful article regarding the Top Ten Student Loan Tips for Recent Graduates. Click here to learn more.
Teacher Loan Forgiveness Programs
For Federal Direct Loan and Perkins Loan Borrowers:
The government has approved an application and forbearance form for the Teacher Loan Forgiveness Program. The Teacher Loan Forgiveness Application is used to evaluate eligibility for up to $5,000 in forgiveness benefits for highly qualified teachers or up to $17,500 for highly qualified mathematics, science, and special education teachers. The Teacher Loan Forgiveness Forbearance form is used to determine forbearance eligibility for borrowers who are completing their teaching service requirements prior to applying for teacher loan forgiveness.
The Teacher Loan Forgiveness Application and the Teacher Loan Forgiveness Forbearance form may be used by -
- Teachers who started their qualified teaching service before October 30, 2004 . These teachers may receive up to $5,000 in loan forgiveness for service as a full-time elementary school teacher who demonstrates knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum or for service as a full-time secondary school teacher teaching in a subject area that is relevant to their academic major;
- Teachers who started their qualified teaching service on or after October 30, 2004 . These teachers may receive up to $5,000 in loan forgiveness for service as a highly qualified, full-time elementary or secondary school teacher, as defined in the application;
- Teachers who started their qualified teaching service on or after October 30, 2004 . These teachers may receive up to $17,500 in loan forgiveness for service as a highly qualified, as defined in the application, full-time mathematics or science teacher in an eligible secondary school or for service as a highly qualified special education teacher; and
- Certain teachers who previously received teacher loan forgiveness under the previous provisions of the law . These teachers may receive loan forgiveness up to the difference between $17,500 and the amount that had previously been forgiven only if the borrower is otherwise eligible and has five complete consecutive years of qualified teaching service that met the definition of a highly qualified full-time mathematics or science teacher in an eligible secondary school or a highly qualified special education teacher.
The Teacher Loan Forgiveness Forbearance form reflects the requirements pertaining to granting forbearance to an eligible borrower who will be performing qualified teaching service and whose loan forgiveness benefit, up to $5,000 or up to $17,500, as applicable, will not satisfy the anticipated outstanding balance at the end of the borrower's fifth year of qualifying teaching service. You will need to contact your lender to obtain these applications.
For more information, please visit the Department of Education website on Teacher Forgiveness.
Perkins Loan Information
If you borrowed under the Federal Perkins Loan Program while at Meredith, you may obtain information regarding your Perkins Loans by contacting the loan service provider Campus Partners at 1-800-334-8609 or by visiting their website at www.mycampusloan.com.
