News About Loans
Loan Program Updates
Merrimack College has some great news for students and families who are considering loans for 2011-2012.
Merrimack College will be processing all federal student loans and parent PLUS loans through the U.S. Department of Education William D. Ford Federal Direct Loan Program for 2011-2012.
The Direct Loan program provides federally insured funds of up to a maximum of $3,500 for first year students, $4,500 for second year students, and $5,500 for third and fourth year students. In addition, all undergraduate students are eligible to borrow up to $2,000 in an unsubsidized Stafford Loan in addition to the annual loan limits listed.
The 2011-2012 interest rates for the undergraduate federal direct student loan are 3.4% for subsidized and 6.8% for unsubsidized. There is also a 0.5% origination fee deducted by the lender (US government) from each loan disbursement.
Students must complete online Entrance Counseling and electronically sign a Master Promissory Note at www.studentloans.gov before funds can be disbursed. A link to the 2011-2012 Direct Student Loan Processing Guide can be found on the right side of the screen.
Students must file the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov to be eligible for the direct student loans.
Federal direct parent (PLUS) loans are not based upon financial need. Parents may borrow up to the cost of attendance minus financial aid annually for each dependent, undergraduate student. Funds are available to credit-worthy parents of dependent students through the federal government. Students must file the 2011-2012 FAFSA before a parent may apply for a PLUS loan. The current interest rate is fixed at 7.9% with a 4.0% origination fee deducted by the lender from the original loan amount. Some borrowers may qualify for a 1.5% rebate of the origination fee.
Students whose parent is denied the PLUS loan may contact the Office of Financial Aid for further instruction about requesting additional unsubsidized student loan funds.
Parents interested in the Federal Direct PLUS loan can apply online at www.studentloans.gov. To assist families with students coming to Merrimack for the first time this fall, a parent loan estimator worksheet can be downloaded.
Additional loan information will be posted on this page as well as the myMack portal as needed.
Private/Alternative loans are an option for students and families to assist them in paying for educational expenses that are not covered by other types of financial aid. It is strongly recommended that you apply through the federal loan program first, as historically they often have more favorable terms than private loans.
A financial aid resource for loan calculations and loan consolidations is www.finaid.org.
Tuition payment plans are available. More information can be found at www.afford.com and through the Merrimack College Bursar’s web page.
For More Information
Please contact the Office of Financial Aid via email at Financialaid@merrimack.edu or telephone: 978-837-5186.
