Loans

Federal Direct Stafford Loan Program – Student is the Borrower

The Free Application for Federal Student Aid (FAFSA) serves as the primary application for this loan and must be completed each year if you wish to continue to obtain federal student loan funds. The web site is studentaid.gov to apply. There are two components to the Direct Loan Program which are Subsidized and Unsubsidized.

The current interest rate for an undergraduate Subsidized & Unsubsidized Loan is: 3.73%. *for Direct Loans first Disbursed on or After July 1, 2021 and before July 1, 2022.

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans

First Disbursement Date	Loan Fee
On or after 10/1/20 and before 10/1/22	1.057%
On or after 10/1/19 and before 10/1/20	1.059%

Direct Subsidized Loans are need based student loans that include full interest subsidy during the in school period. This means that the federal government will pay your interest while you are in school and your loan principal is deferred.

Direct Unsubsidized Loans are student loans that are not based on need. Therefore, quarterly interest payments are required or the interest will be capitalized upon repayment. This means that your unpaid interest is added to the principal.

Repayment of both Direct Subsidized and Unsubsidized loans begins six months after student ceases enrollment or enrolls in fewer than 6 credits. Repayment may extend for up to ten years.

The exact amount of loan eligibility is determined by the following formula: educational costs minus financial aid, minus expected family contribution as calculated by the U.S. Dept. of Ed.

Grade Level	Credit Requirement	Direct Subsidized Limit	Direct Unsubsidized Limit	Direct Extended Unsubsidized Limit (1)
First Year	0-29	$3500	$2000	$4000
Second Year	30-59	$4500	$2000	$4000
Third Year	60 +	$5500	$2000	$5000
Fourth Year	60+	$5500	$2000	$5000
Fifth Year	60+	$5500	$2000	$5000
Graduate			$20,500

Annual amount may be limited based on the Cost of Attendance and other financial aid received.

(1) Direct Extended Unsubsidized is available only to independent students and dependent students whose parent(s) have been denied a Direct PLUS loan. Detailed information for the Federal Direct Loan can be found at https://studentaid.gov/understand-aid/types/loans or call 1-800-557-7394 for assistance.

 

Federal Direct Parent Plus Loan- Parent is the Borrower

This program allows creditworthy parents of full or half time dependent undergraduates to borrow up to the total University costs minus other financial aid. The interest on the Direct PLUS Loan is fixed at 6.28% (Interest Rate for Direct Loans First Disbursed on of After July 1, 2021 and Before July 1, 2022). Repayment normally begins within sixty days after the second disbursement but can be deferred until after the student graduates. There is a ten year repayment period. If a parent is denied a Direct PLUS Loan, the student is eligible to borrow additional Direct Unsubsidized Loan funds.

When determining the amount to borrow, consider the origination fee.  The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Fees for Direct PLUS Loans

First Disbursement Date	Loan Fee
On or after 10/1/20 and before 10/1/22	4.228%
On or after 10/1/19 and before 10/1/20	4.236%

Loans first disbursed prior to Oct. 1, 2019, have different loan fees.

We recommend that the PLUS application be submitted no earlier than May 1st as the credit check expires after 90 days. Parents can apply for the PLUS loan and submit the Master Promissory Note at http://studentaid.gov or calling 1-800-557-7394.

Detailed information for the Federal Direct Loan can be found at https://studentaid.gov/understand-aid/types/loans or call 1-800-557-7394 for assistance.

The Federal Direct Graduate PLUS Loan is available to credit-worthy Graduate students who have exhausted their Federal Direct Stafford Loan eligibility in an academic year. Graduate students are required to first utilize the Direct Stafford Loan Program prior to borrowing under the Direct PLUS Loan Program. The U.S. Department of Education will conduct the mandatory credit check. Direct Graduate PLUS borrowers may borrow up to the cost of attendance for the period of enrollment, minus other estimated financial assistance received for the period. The interest on the Direct PLUS Loan is fixed at 6.28% (Interest Rate for Direct Loans First Disbursed on of After July 1, 2021 and Before July 1, 2022).

When determining the amount to borrow, consider the origination fee.  The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Fees for Direct PLUS Loans

First Disbursement Date	Loan Fee
On or after 10/1/20 and before 10/1/22	4.228%
On or after 10/1/19 and before 10/1/20	4.236%

Loans first disbursed prior to Oct. 1, 2019, have different loan fees.

Graduate Students can apply for the PLUS loan and submit the Loan Entrance Counseling and Master Promissory Note http://studentaid.gov or calling 1-800-557-7394.

Detailed information for the Federal Direct Loan can be found at https://studentaid.gov/understand-aid/types/loans or call 1-800-557-7394 for assistance.

All students borrowing direct loan money must complete Loan Entrance Counseling and electronically sign a Master Promissory Note (MPN).

The Loan Counseling Process is mandated by the federal government to ensure that students understand their rights/obligations as a borrower.

These two processes must be completed online at https://studentloans.gov.

Prior to ending enrollment, all students must complete exit loan counseling at https://studentloans.gov.

Alternative (Private) Loans

Students and their families can borrow additional loan funds to help meet their college costs when other financing options are exhausted. These loan programs are provided by commercial lenders and are not supported by state or federal financial aid funds. Maximum loan amounts, borrower qualification, repayment schedules and interest rates vary by lender. Many will require a co-signer. Some alternative loans are not subject to federal financial aid regulations, such as having a FAFSA on file, making satisfactory academic progress, completing federal verification, and they do not have limits on the amount borrowed based on the number of credits earned. However, they are based on the credit-worthiness of the applicant and/or the cosigner. Please note it is the responsibility of the borrower to ensure that the Student Financial Services Office receives any certification requests from lenders.

All certified loans are transferred on to the student account during the first week of the semester. 

Click to view Preferred Alternative Loan Lenders

Income Share Agreement

An Income Share Agreement, or ISA, provides an alternative funding option to supplement student's financial aid and federal loans. ISAs provide funding for certified tuition and fees in exchange for a student's promise to pay a fixed percentage of his or her future income for 5 years following graduation. 

Stride Funding provides ISA funding options to students enrolled in eligible programs at Misericordia, who are achieving a 3.0+ GPA and are in the final two-years of their degree program. With an ISA from Stride Funding, you do not need a cosigner or current income, as they look at where you’re going (future income), not where you’ve been. All Stride students automatically become a member of the Stride Community, giving you access to career support (e.g., monthly content, exam prep, interview guidance) and a broader community of peers who can support you as you begin your professional journey. If interested in learning more and getting a quote, you can visit them at https://www.stridefunding.com/misericordia.

Frequently Asked Questions:

Q: Are ISAs loans?

A:  ISAs are real obligations though they are different than loans. They do not have a fixed principal amount or an interest rate. Rather, students commit to paying a fixed percentage of their earned income after graduation. Unlike a private loan, there is no guaranteed amount of money that a student will pay monthly or total during the life of an ISA, as this will vary with earned income.

Q: What are the key risks of an ISA?

A: ISAs have a fixed income percentage which means that you will pay less in months where you earn less and more in months where you earn more. This means that you could pay more or less than your funding amount, and more or less than you would with a loan if you enter into an ISA.

Q: Will an ISA affect my financial aid?

A: No. ISAs are treated like private student loans and are generally available up to the full cost of attendance of your program, subject to maximums put in place by each ISA provider.

Q: Will my ISA funding be paid directly to me?

A: No. Just like private student loans, your ISA funding will be paid to Misericordia directly by your ISA provider on your behalf.

Q: Are there any eligibility requirements?

A: Each provider will have different requirements to be eligible for an ISA. Many providers will consider your degree program, the portion of your degree already completed, your citizenship, and your GPA or academic progress. You should review the specific eligibility requirements for your ISA provider should you choose to apply for an ISA.