Federal Loans

Graceland offers a number of federal loans. Some are based upon financial need as defined by the U.S. Department of Education, other loans are available without a demonstrated need. The major types of federal Title IV loans are: 

  • The William D. Ford Direct Loan Program allows students to borrow low-interest loans from the Department of Education. Dependent students may borrow up to $3,500 a year as first-year students, $4,500 as sophomores, and $5,500 as juniors and seniors. These loans may be subsidized or unsubsidized depending on the applicant's financial need. Independent students may have expanded borrowing capabilities. Students must file a FAFSA to determine their loan eligibility. Interest is at a fixed rate not to exceed 8.25 percent. A six-month grace period occurs after the loan recipient ceases to be enrolled at least half time before repayment begins.
  • The Federal Ford Direct Parent Loan for Students (PLUS Loan) provides funding for parents of dependent students. Parents may borrow the difference between the student's cost of education and all other financial assistance. A FAFSA application is not required for the PLUS. Payment and interest charges begin within 60 days after the full amount borrowed has been disbursed. The interest rate is variable and is adjusted each year on July 1 but will never be higher than nine percent. Payments may be deferred until six months after the student is no longer full time.

In order to obtain these loans, certain steps must be followed.

To receive the subsidized and/or unsubsidized loans,

- complete a Free Application for Federal Student Aid (FAFSA)

complete the Entrance Counseling

- sign a Master Promissory Note (MPN). You will use an Electronic PIN (same one as the FAFSA) to sign your promissory note.

Upon graduation or withdrawal from school, students will need to complete Exit Counseling. For Direct Loans this can be completed online at Exit Counseling.