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Loans and Payment Plans

Direct Subsidized Loans | Direct Unsubsidized Loans | Direct PLUS Loans | Perkins Loans | Annual and Lifetime Limits
Current Loan Interest Rates | Current Origination Fees
Entrance Counseling | Master Promissory Note | Exit Counseling
Repayment | Deferment | Consolidation | Loan Forgiveness, Cancellation, and Discharge

Federal Student Loan Information

To apply for a federal student loan, you must first complete a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.  Your loan eligibility will be based on the information you submit to Oakland City University on the FAFSA.

The Department of Education offers student loans through the William D. Ford Federal Direct Loan Program and will serve as your lender.  There are four types of loans available under the Direct Loan Program.

  • Direct Subsidized Loans are made to eligible undergraduate students who are enrolled at least half time (6 credit hours) and demonstrate a financial need.
  • Direct Unsubsidized Loans are made to eligible undergraduate, graduate, and professional students who are enrolled at least half time (6 credit hours).  Unlike the Subsidized loan, the student does not have to demonstrate a financial need in order to be eligible for this loan.
  • Direct PLUS Loans are made to graduate or professional students and parent of dependent undergraduate students who are enrolled at least half time (6 credit hours) to help cover the cost of educational expenses. (Credit check is required.)
  • Direct Loan Consolidation Loans allow students to combine all eligible federal student loans into a single loan with a single servicer.

Perkins Loans
Perkins loans are made to eligible undergraduate, graduate, and professional students who demonstrate an exceptional financial need.  Evan though the Perkins Loan Programs is a federal loan program, Oakland City University is considered the lender.  Funds depend of your financial need and the availability of funds at Oakland City University from one academic year to the next.

Direct Subsidized Loans

  • Direct Subsidized Loans are made available to undergraduate students (enrolled in at least 6 credit hours) who demonstrate a financial need.
  • The Oakland City University Financial Aid Office will determine the amount you are eligible to borrow.  This amount may not be in excess of your financial need.
  • The Department of Education pays the interest on a Direct Subsidized loan for you
    • while you are in school at least half time (6 credit hours),
    • for the first six months after you leave school (graduate or withdraw),
    • during a period of deferment.
  • Before loan funds can be processed, you must have a valid Master Promissory Note and Entrance Counseling session on file with the Department of Education.  Click the links at the top of the page for more information.
  • Before your loan funds are disbursed, you may cancel all or part of your loan at any time by notifying the Financial Aid Office.  After your loan is disbursed, you may cancel all or part of the loan within a certain time frame.  Contact the Financial Aid Office for more information.

PLEASE NOTE: If you receive a Direct Subsidized Loan that is disbursed between July 1, 2012 and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period.  If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

For more information on the William D. Ford Federal Direct Subsidized Loan please visit the Federal Student Aid website.

Direct Unsubsidized Loans

  • Direct Unsubsidized Loans are made available to undergraduate and graduate students who are enrolled at least half time (6 credit hours).  This loan does not have a financial aid need requirement.
  • The Oakland City University Financial Aid Office will determine the amount you are eligible to borrow.  This amount may not be in excess of the cost of attendance established by the Financial Aid office in combination with other financial aid you may receive.
  • You are responsible for paying the interest on an Unsubsidized Loan during all periods (enrollment, grace, deferments, etc.)
  • If you choose not to pay the interest on your loan while you are in school and during all other periods, your interest will accumulate and be added to the principal of your loan.
  • Before loan funds can be processed, you must have a valid Master Promissory Note and Entrance Counseling session on file with the Department of Education.  Click the links at the top of the page for more information.
  • Before your loan funds are disbursed, you may cancel all or part of your loan at any time by notifying the Financial Aid Office.  After your loan is disbursed, you may cancel all or part of the loan within a certain time frame.  Contact the Financial Aid Office for more information.

For more information on the William D. Ford Federal Direct Unsubsidized loan please visit the Federal Student Aid website.

Direct PLUS Loans

  • Direct PLUS Loans are made available to graduate or professional students and parent of dependent undergraduate students.  The student must be enrolled at least half time (6 credit hours).
  • The borrower must not have an adverse credit history (credit check will be performed by the Department of Education at the time the loan is applied for).
    • If you have adverse credit, you may want to consider and endorser for the loan application.
    • If a parent borrower is denied a PLUS loan, the undergraduate, dependent student may be eligible to receive additional unsubsidized loan funds.  Please contact the Financial Aid Office for more information.
  • The maximum loan amount is the student’s cost of attendance, as determined by the Financial Aid Office minus any other financial aid received. 
  • You may apply for a PLUS loan at www.studentloans.gov.  The Financial Aid Office will receive your completed PLUS loan application from the Department of Education after processing.
  • Before loan funds can be processed, you must have a valid Master Promissory Note and Entrance Counseling session on file with the Department of Education.  Click the links at the top of the page for more information.
  • Before your loan funds are disbursed, you may cancel all or part of your loan at any time by notifying the Financial Aid Office.  After your loan is disbursed, you may cancel all or part of the loan within a certain time frame.  Contact the Financial Aid Office for more information.

For more information on the William D. Ford Federal PLUS loan please visit the Federal Student Aid website.

Perkins Loans

  • Perkins loans are made available to undergraduate, graduate, and professional students who demonstrate and exceptional financial need as defined by Oakland City University Financial Aid Policy.
  • Oakland City University is considered the lender, loan repayments will be made to the University’s loan servicer, University Accounting Services.
  • Funding depends on your financial need and the availability of funds in the Perkins Loan Fund from one academic year to the next.
  • Before loan funds can be processed, you must have a valid Master Promissory Note and Entrance Counseling session on file with the Business Office.  Click the links at the top of the page for more information.
  • Before your loan funds are disbursed, you may cancel all or part of your loan at any time by notifying the Financial Aid Office.  After your loan is disbursed, you may cancel all or part of the loan within a certain time frame.  Contact the Financial Aid Office for more information.

For more information on the Federal Perkins Loan Program please visit the Federal Student Aid website.

Annual and Lifetime Limits

YEAR Dependent Undergad Students
(except students whose parent are unable to obtain PLUS Loans)
Independent Students
(and dependent students whose parents are unable to obtain PLUS Loans)
Perkins
(independent and dependent students
First Year
(1-29 credit hours earned) Undergraduate Loan Limit
$5,500—No More than $3,500 of this amount may be in subsidized loans. $9,500—No More than $3,500 may be in subsidized loans Determined by Financial Aid Office but no more than $5,500
Second Year
(30-59 credit hours earned) Undergraduate Annual Loan Limit
$6,500—No more than $4,500 of this amount may be in subsidized loans. $10,500—No more than $4,500 of this amount may be in subsidized loans. Determined by Financial Aid Office but no more than $5,500
Third Year
(60+ credit hours earned) Undergraduate Annual Loan Limit
$7,500—No more than $5,500 of this amount may be in subsidized loans. $12,500—No more than $5,500 of this amount may be in subsidized loans. Determined by Financial Aid Office but no more than $5,500
Graduate or Professional Student Annual Loan Limit Not applicable (all graduate and professional students are considered independent) $20,500 (unsubsidized only) Determined by Financial Aid Office but no more than $5,500
Subsidized and Unsubsidized Lifetime (aggregate) Loan Limit $31,000—No more than $23,000 of this amount may be in subsidized loans. $57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.

$138,500 for graduate and professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate lifetime (aggregate) limit includes all federal loans received for undergraduate study.
$11,000 for undergraduate students who have not completed 2 years.

$27,500 for all other undergraduate students.

$60,000 for graduate students. The graduate lifetime(aggregate) limit includes all loans borrowed at the undergraduate level.

For more information on the amount of loan funds you have borrowed and lifetime limit information please visit the National Student Loan Data System to access your specific loan information.

PLEASE NOTE:
The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have received previously under the Federal Family Education Loan (FFEL) Program.  As a result of legislation that took effect July 1, 2010, no further loans are being made under the FFEL Program.
Effective for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans.  The $65,500 subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate student or professional student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study.
If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans.  You may not receive Direct Subsidized Loans for more than 150% of the published length of your program.  You can find the published length of your program of study in the University’s catalog. 

Current Loan Interest Rates

Interest Rates for loans first disbursed between July 1, 2013 and June 30, 2014.

Undergraduate Students Graduate Students
Direct Subsidized Loans

3.86%

N/A

Direct Unsubsidized Loans

3.86%

5.41%

PLUS Loans

6.41%

6.41%

Perkins Loans

5%

5%

PLEASE NOTE:
If you already have federal student loans and would like to check the interest rate, servicer information, and other financial aid history log on to the
National Student Loan Data System.

Current Origination Fees

Most federal student loans have loan fees that are deducted from each loan disbursement you receive.  This is called an origination fee.  You are responsible for repaying the entire loan amount you borrowed and not just the amount you received. 
Loan Origination Fees for loans first disbursed on or after July 1, 2013.

Direct Subsidized Loans

1.051%
First Disbursed on or after December 1, 2014: 1.072%

Direct Unsubsidized Loans

1.051%
First Disbursed on or after December 1, 2014: 1.072%

Direct PLUS Loans

4.204%
First Disbursed on or after December 1, 2014: 4.288%

Perkins

No origination fee

Entrance Counseling

If you choose to borrow from the Federal Direct Loan Program or the Perkins Loan Program you will need to complete an Entrance Counseling Session.
Parents taking out a Direct PLUS Loan for their dependent undergraduate student do not have complete entrance counseling.
Graduate students taking out a PLUS loan for the first time will be required to complete entrance counseling even if counseling was completed for a previous subsidized or unsubsidized loan.

For Direct Loan Borrowers:

For Perkins Loan Borrowers:

  • Oakland City University requires entrance counseling sessions for the Perkins Loan Program to be completed in person.  Please contact the Business Office at 812-749-1240 to make an appointment to complete your session.

Master Promissory Note

The  Master Promissory Note (MPN) is a legal documents in which you promise to repay your loan and any accrued interest and fees to your loan servicer (Dept of Education or Oakland City University).  It also explains the terms and conditions of your loan.

For Direct Loan Borrowers:

  • Log on to www.studentloans.gov to complete your MPN.  You should allow a minimum of 30 minutes to fully read and sign your MPN. 
  • The Financial Aid Office will be notified once the MPN is complete.  It is important to understand that if you are a first time borrower at Oakland City University you will not receive your first disbursement until the MPN is complete. 
  • You must sign an MPN if:
    • You have never signed a Direct Subsidized, Unsubsidized, or PLUS Loan MPN.
    • You signed an MPN more than a year ago, but the loan was not disbursed.
    • You signed an MPN more than 10 years ago.
    • For PLUS Loans:  You obtained an endorser due to adverse credit history.
    • For Parent Borrowers: Parents must complete a sign a separate MPN for each student for whom they are borrowing.
  • Step by step instructions for completing the MPN can be found here.

For Perkins Loan Borrowers:

  • Oakland City University requires Master Promissory Notes for the Perkins Loan Program to be completed in person.  Please contact the Business Office at 812-749-1240 to make an appointment to complete your MPN.

Exit Counseling

You must receive exit counseling before your leave school to make sure you understand your rights and responsibilities as a borrower.  You will receive information about repayment and your loan servicer will notify you of the date loan repayment begins.  Parent PLUS loan borrowers do not participate in exit counseling. 

For Direct Loan Borrowers:
You will be required to complete exit counseling when you:

  • Graduate;
  • Withdraw from school;
  • Drop below half time status (less than 6 credit hours);
  • Transfer to another school.

The exit counseling session can be completed by going to www.studentloans.gov and clicking on the exit counseling link. Step by step instructions for completing exit counseling can be found here.
**It is important to understand that if you have been notified that Exit Counseling is required your official transcript and/or diploma will not be released until the Financial Aid Office has been notified that your session is complete.

For Perkins Loan Borrowers:
You will be required to complete exit counseling when you:

  • Graduate;
  • Withdraw from school;
  • Drop below half time status (less than 6 credit hours);
  • Transfer to another school.

The exit counseling session can be completed by going to https://www.uasexit.com and enter your personal information to begin the session
**It is important to understand that if you have been notified that Exit Counseling is required your official transcript and/or diploma will not be released until the Business Office  has been notified that your session is complete.

Repayment

To make your payments more affordable, repayment plans can give you more time to repay your loans or be based on your income.  Contact your loan servicer if you would like to discuss repayment plan options or change your repayment plan.  You can obtain your loan servicer information as well as other information concerning your Federal student loans on the National Student Loan Data System website.

You can use the Department of Education’s Repayment Estimator to get a look at which plans you may be eligible for and see estimates on how much you would pay monthly and overall.  Click on the Repayment Plans and Calculators under the Managing Repayment tab.  You will need to have your Federal Student Aid PIN ready in order to access this information.  If you have forgotten your PIN, you can request a PIN reset or a duplicate PIN by going to www.studentloans.gov and clicking on the Apply for A PIN under the Tools and Resources tab. 

An explanation and eligibility requirements of each repayment plan offered by the Department of Education for Federal Direct Loans can be found here.

Perkins repayment plan options are not the same as those for Direct Loan or FFEL Program loans.  You will need to contact Oakland City University’s Perkins Loan servicer, University Accounting Service, for more information on Perkins Loan repayment plan options.

Deferment

A deferment is a period of time during which repayment of the principal and interest of your loan is temporarily delayed.  Most deferments are not automatically granted, you will need to submit a request to your loan servicer.  If you enrolled in school at least half-time you will need to contact the Financial Aid Office as well as your loan servicer for more information on obtaining an in-school deferment. 
The table below provides an example of situations that may make you eligible for a deferment:

Situations When You May Apply For Deferment Direct Loans FFEL Loans Perkins Loans
During a period of at least half-time enrollment in college or career school YES YES YES
During a period of study in an approved graduate fellowship program in an approved rehabilitation training program for the disabled YES YES YES
During a period of unemployment or inability to find full-time employment YES
(for up to 3 years)
YES
(for up to 3 years)
YES
(for up to 3 years)
During a period of economic hardship (includes Peace Corps service) YES
(for up to 3 years)
YES
(for up to 3 years)
YES
(for up to 3 years)
During a period of service qualifying for Perkins Loan discharge/cancellation NO NO YES
During a period of active duty military service during a war, military operation, or national emergency YES YES YES
During the 13 months following the conclusion of qualifying active duty military service, or until you return to enrollment on at least a half-time basis, whichever is earlier, if
  • You are a member of the National Guard or other reserve component of the US armed forces AND
  • You were called or ordered to active duty while enrolled at least half-time at an eligible school or within six months of having been enrolled at least half-time
YES YES YES

If you are a Direct Loan or FFEL Program borrower who has a loan that was first disbursed before July 1, 1993, you may be eligible for additional deferments for situations including teaching in a teacher shortage area, public service, being a working mother, parental leave, or temporary disability.  For more information on these additional deferment options please contact your loan servicer.

Consolidation

If you have multiple federal student loans, you can consolidate them into a single Direct Consolidation Loan.  This may help simplify repayment if you are currently making separate payments.  Visit the Federal Student Aid consolidation page at http://studentaid.ed.gov/repay-loans/consolidation for more information and options for consolidation. 

Loan Forgiveness, Cancellation, and Discharge

Under certain conditions, you may be eligible to have all or part of your loan discharged or forgiven (canceled).

Visit the Department of Education’s Federal Student Aid website, http://studentaid.ed.gov/repay-loans/forgiveness-cancellation#total-and, for a quick view of the types of forgiveness, cancellation, and discharge conditions.  Many of the qualifying conditions require an application to be submitted.  The required applications may also be found at the link mentioned above.  

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