Loans

Funding for federal loan programs subject to annual budget decisions.

• Federal student loans

  • Federal loans for students have fixed interest rates and can be interest free while in school for those who demonstrate financial need. Payments are deferred while you are in school at least half time.

• Parent loans

  • The Federal Direct PLUS loans (Parent Loan for Undergraduate Students) are federal loans that graduate students and parents of dependent undergraduate students can use to help pay for college/university.

• Private loans

  • These loans are offered by banks or lending institutions to help students and parents bridge the gap between the cost of education and financial aid already received. These loans are not guaranteed by the federal government.

Important terms

Subsidized loans

Won't accrue interest while you are enrolled at least half time (6 credit hours), in deferment (postponed with approval) or in your grace period.

Unsubsidized loans

Accrue interest while you're in school. Interest payments are not mandatory while you're in school, but any interest accrued will turn into principal once the loan is in repayment.

Disbursement

Payment of the loan to your tuition, room & board account at Calvin. Federal student loans, Federal PLUS and Private Loans will be disbursed directly to the student's tuition account in two installments. Disbursements are split equally between the fall and spring semesters. With proper arrangements, uneven disbursements of a Federal PLUS or Private Loan can occur to account for significant differences in costs between one semester versus the other (enrollment in an off-campus semester, etc).

Promissory note

Binding legal document that MUST be signed by the student for a student loan. It lists conditions, rights and responsibilities of borrowing and repayment. Federal Direct Subsidized/Unsubsidized Stafford Loans and PLUS Loans must only be signed once (Master Promissory Note).

Co-signer

For private loans, this is the person who will be responsible for making payments if the primary borrower becomes unable or unwilling to make payments on the loan. A parent, spouse, or other relative may be a good candidate for co-signing. All of our alternative loan preferred lenders strongly suggest a co-signer in order to obtain the best interest rates and repayment terms possible.

Deferment

A period when repayment of the principal and interest of your loan is delayed. Most educational loans can be deferred while a student is enrolled in a college/university at least half time.

Leaving Calvin?

If you discontinue your education for any reason, you must contact the office of financial aid regarding your loans. You must also complete exit loan counseling.

Contact

If you wish to reduce or cancel your loan(s) or wish to sign a paper promissory note instead of the electronic note, please contact our office.