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 three 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%. A six-month grace period occurs after the loan recipient ceases to be enrolled at least half-time before repayment begins.
  • The Federal Perkins Loan funds are available to students enrolled in the Lamoni on-campus program and Independence undergraduate nursing program. This loan program allows undergraduate students with financial need to borrow directly through Graceland University. Repayment with interest of 5% begins 9 months after the student is no longer enrolled at least half-time.
  • 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 9 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. For the Subsidized and Unsubsidized loans, the student must complete a Free Application for Federal Student Aid (FAFSA), Entrance Counseling, and sign a Master Promissory Note (MPN). You will use an Electronic PIN (same one as the FAFSA) to sign your promissory note.

For a Perkins Loan you will also need to complete FAFSA and the Perkins Entrance Counseling and Master Promissory Note.

If your package contains both Direct Loans and Perkins Loans you will need to complete the entrance counseling and MPN for both types of loans.

Upon graduation or withdrawal from school, students will need to complete Exit Counseling. For Direct Loans this can be completed on line at Exit Counseling. For Perkins you must use the Perkins Exit site. If you have had both the Perkins and Direct Loans you must complete exit counseling for both programs