Loan Information

• Alternative (Private) Loans

  There are several educational loan opportunities to help cover costs when federal and state programs are insufficient or when students are ineligible for federal loans. Terms of eligibility and repayment vary. Most require a creditworthy cosigner; some offer a cosigner release. Most offer deferred repayment while the student is in school. 

  Some alternative loans require the student to meet the school's satisfactory academic progress requirement, while others do not. Please note it is the responsibility of the borrower to ensure that the Financial Aid Office receives any certification requests from lenders.

  See the DeSales University preferred lender list »

  You have the right to select any lender you choose. Preferred lenders have been selected based on competitive pricing, borrower benefits, and service to borrowers and the school. To understand why we picked these lenders, please read about the lender selection process.

  The Higher Education Act of 2008

  The Higher Education Act of 2008 sought to protect student loan consumers and amended the Truth in Lending Act (TILA) and established disclosure requirements for private education loans. (Regulation Z)

  As a result of this change, all private lenders are required to collect a self-certification form from each applicant before a private loan can be processed. 

  The form: 

  • informs and reminds you about other sources of financial assistance and federal loan options
  • collects your cost of attendance* and expected financial assistance at DSU. This information will be used by the lender as part of the eligibility determination process 
  • Lenders will provide you with the form at the time of application or you can download the Private Education Loan Applicant Self-Certification and submit it to your lender of choice. 

  Students who plan on filing a FAFSA should do so before applying for a private loan so that they have an estimate of their financial assistance.

  The Higher Education Opportunity Act also requires preferred lenders to annually provide schools with information regarding the private education loans that will be offered to the school's students. Accordingly, please find the Lender Disclosures for the 2011-2012 Academic Year. The Disclosure provides general information regarding rates, terms, cost examples, and eligibility requirements. A Loan Approval Disclosure Form will be provided with specific loan details after the application is approved. Rates may vary depending on the creditworthiness of the borrower.

  * The total Cost of Attendance includes estimates for tuition, fees, room, board, books, and personal, transportation, and living expenses. Important Note for Traditional Day Students: 
  The Cost of Attendance information provided is based on standard enrollment of full-time.

  Your estimated financial assistance is available on the "Award Package by Aid Year" and can be obtained by logging onto WebAdvisor.

  
  

• Federal Direct/Stafford Loans

  As a result of the passage of the student aid reform bill, institutions offering Title IV loans are mandated to switch to the William D. Ford Federal Direct Loan Program for loans originated after July 1, 2010. In the Direct Loan Program, your Stafford loan lender is the federal government and the loans are serviced by the U.S. Department of Education.

  Stafford Loans are either subsidized or unsubsidized. A student can receive a subsidized loan and an unsubsidized loan for the same enrollment period. A subsidized loan is awarded on the basis of financial need. A student will not be charged any interest before repayment or during authorized periods of deferment because the federal government "subsidizes" the interest during these periods. Repayment begins six months after graduation or after a student drops below half-time status.

  Unlike a subsidized loan, an unsubsidized loan is not based on financial need. Interest is charged from the time the loan is disbursed until it is paid in full. If a student allows the interest to accumulate while in school or during other periods of nonpayment, it will be capitalized - that is, the interest will be added to the principal amount of the loan.

  The interest rate for subsidized and unsubsidized Stafford loans made after July 1, 2006 is fixed at 6.8%.

  The following schedule shows the annual decreases in the fixed interest rates on undergraduate subsidized Stafford loans:

  • 6.0% for loans first disbursed between 7/1/08-6/30/09
  • 5.6% for loans first disbursed between 7/1/09-6/30/10
  • 4.5% for loans first disbursed between 7/1/10-6/30/11
  • 3.4% for loans first disbursed between 7/1/11-6/30/12

  The rate for loans disbursed prior to July 1, 2006 is variable (subject to change each year) but does not exceed 8.25%. Variable interest rates are adjusted each year on July 1. You will be notified of variable interest rate changes throughout the life of your loan. If you have subsidized loans, you will not be charged interest while enrolled in school at least half time, during a grace period, or during authorized periods of deferment. Interest will begin to accumulate when you enter repayment.

  If you have unsubsidized loans, you'll be charged interest from the day the loan is disbursed until it is paid in full, including during in-school, grace, and deferment periods. You can pay interest during these periods or it can be capitalized.

  Annual Stafford Loan Limits for Dependent Students (effective July 1, 2008)
  Year in School	Base Subsidized/Unsubsidized Amount	Additional Unsubsidized Amount	Total Amount	Additional Unsubsidized if parent is denied PLUS loan
  Freshman Sophomore Junior/Senior	$3,500 $4,500 $5,500	$2,000 $2,000 $2,000	5,500 $6,500 $7,500	$4,000 $4,000 $5,000

   

  Please complete your MPN and entrance counseling for Stafford loans.

  
  

• Federal Perkins Loan

  Students may receive loans under the Federal Perkins Loan Program, but students with exceptional need have priority. Amount actually received depends on financial need, amount of other aid, availability of funds at school. Repayment begins nine months after student graduates or completes military service. 5% fixed interest rate in repayment.
  
  

• Private Loan Disclosures

  PNC
  Application and solicitation disclosure

  CitiAssist Application and Solicitation Disclosures
  Application and Solicitation Disclosures

  Wellsfargo
  Education Loans Disclosures

  SallieMae
  Application and solicitation disclosure

  Chase
  Loan Application Disclosure form

  Citizens Bank
  Variable disclosure
  Fixed rate disclosure

  iHelp
  Application and solicitation disclosure

  Suntrust
  Academic Answer disclosure statement
  Custom Choice disclosure statement

  
  

• PLUS Loan Program

  The PLUS Loan is available to parents of dependent, undergraduate students and qualifying independent graduate students enrolled at least half time. 

  Parents/students may borrow up to the cost of education minus any other estimated financial aid, assuming they meet established criteria. Due to new Federal regulations set by the Department of Education students must file a FAFSA in order to determine eligibility for the PLUS loan program. 

  A dependent student for whom a PLUS Loan is borrowed must meet the general eligibility criteria in 34 CFR 668 Subpart C and a parent borrower must meet the eligibility criteria, such as citizenship, specified in 34 CFR 682.201(c)(1) for the FFEL Program and 34 CFR 685.200(c)(1) for the Direct Loan Program. The current PLUS loan is a fixed rate of 8.5%. Each loan also carries an origination fee of 3% and a federal default fee of 1% of the amount borrowed. The lender deducts these fees from disbursements sent to the college.

  Process a credit pre-approval and E-Sign the Parent MPN online.

  Dependent Students: If your parent is denied a PLUS loan, we will automatically process an additional Direct Unsubsidized Loan for you.

  Grace Period and Deferment for Parent PLUS Borrowers
  Beginning July 1, 2008, parents can choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly. In addition a special provision for parents delinquent on Mortgage Payments has been passed. This will allow the U.S. Department of Education to consider parents eligible for PLUS loans even if, during the period January 1, 2007, through December 31, 2009, the parents are or were:

  • No more than 180 days delinquent on a mortgage payment on their primary residence;
  • No more than 180 days delinquent on any medical bill payments;
  • No more than 89 days delinquency on the repayment of "any other debt".

• Preferred Lender List Selection Process

  Federal loan regulations, set by the Department of Education, require a school that chooses to provide a Preferred Lender List to borrowers to disclose their method of selecting the lenders included on their list of suggested lenders. This guide is to provide information to borrowers about the method DeSales University's Financial Aid Office used to create the 2011/2012 Preferred Lender List.

  According to Section 682.212 of the Federal Register, published by the Department of Education, "A school may, at its option, make available a list of recommended or suggested lenders, in print or any other medium or form, for use by the school's students or their parents, provided such list--

  • Is not used to deny or otherwise impede a borrower's choice of lender
  • Does not contain fewer than three lenders that are not affiliated with each other
  • Does not include lenders that have offered, or have offered in response to a solicitation by the school, financial or other benefits to the school in exchange for inclusion on the list or any promise that a certain number of loan applications will be sent to the lender by the school or its students" (U.S. Department of Education, 2007).

  Why a Preferred Lender List?

  Provides a comparison of selected lenders in relatively consistent terms, reducing confusion and assisting borrowers and their families in making the best-informed decisions. Provides an opportunity to help educate students and parents in regards to the student loan industry.

  Steps Taken With Decision Process

  A Request for Information (RFI) was sent out to those lenders most often chosen by the Lehigh Valley Association of Independent Colleges (LVAIC) students with a list of questions regarding their products and services. The questions included the following topics:

  Origination Fee Current Interest Rate Range Interest Rate Structure Grace Period Standard Repayment Term

  Extended Repayment Term Up-Front Borrower Benefits Borrower Benefits at Repayment Percentage of Borrowers Who Qualify for Benefits Additional Discounts

  Once all information had been gathered and considered, the financial aid office made a decision for the 2011/2012 academic year on particular criteria (which is listed below). Throughout the decision process, the financial aid office's goal was to select a list of reliable lenders who would be able to provide beneficial products and services to the DeSales University community.

  Criteria Used to Select Lenders

  Borrower Benefits -In considering benefits, it was important to evaluate the lenders who offer borrower benefits to students as well as the percentage of the actual borrowers who qualified for such benefits.

  Borrower benefits that were evaluated included the following:

  • Interest rates and terms
  • Fees paid by the lender or the responsibility of the borrower
  • Availability of repayment options
  • Back-end borrower benefits (i.e. principal reduction, interest rate reduction, etc.)

  Quality of Lender Products and Services

  In evaluating lenders' quality of products and services, it was important to determine which lenders provide exceptional customer service to its borrowers as well as the school.

  Quality of products and services criteria used to evaluate each lender was as follows:

  • Ease of application process
  • Web-based application and services
  • Proactive customer communication, including easy access to borrower's current and cumulative borrowing and estimated repayment information
  • A toll-free number for information and advice
  • Timely and responsive processing of loans including resolving issues
  • Expedient and simple pre-approval processes
  • Knowledgeable customer service representatives
  • Dedicated service or marketing representative assigned to the school
  • Lenders practice to recommend students to maximize Federal financial aid first

  Lender Stability

  With regulatory changes and market instability affecting lenders' decisions to remain in the student loan industry, it was important to select lenders who are reliable and will continue to service borrowers for future years.

  Lender stability criteria used to review each lender included the following:

  • Mission Statement
  • Number of years in the student loan business
  • Source of stability of capital used in providing loans
  • Relationships with other loan partners
  • Default rates
  • Reputation at the local, state, regional and national levels
  • Marketing practices including its promotion of products and services
  • Demonstrated security of borrower information

  References

  • National Association of Student Financial Aid Administrators (2007). Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals.
  • National Association of Student Financial Aid Administrators (2005). Monograph - Guide to Developing a Preferred Lender List
  • Spelling, Margaret (09 August 2007). Dear Colleague Letter from the Secretary of Education. Washington, DC.
  • U.S. Department of Education (30 March 2007). Dear Colleague Letter. GEN-07-01. Washington, DC.
  • U.S. Department of Education (08 January 2008). Dear Colleague Letter. GEN-08-01. Washington, DC.
  • U.S. Department of Education (05 May 2008). Dear Colleague Letter. GEN-08-06. Washington, DC.
  • U.S. Department of Education (2007). Federal Register: Part II. 34 CFR Parts 674, 682 & 685. Washington, DC.
  • U.S. Department of Education (2008). Federal Student Aid Handbook 2008-2009. Volume 2 - School Eligibility and Operation. Washington, DC.
  • Provided by the Financial Aid Office of DeSales University