Programs - Loans


Listed below are the educational loan programs that Emporia State University currently participates in.

  Classification1 Enrollment Level2
  UG GR SB TL FT TQ HT LT
Federal                
Direct Subsidized Stafford Loan   √   
Direct Unsubsidized Stafford Loan √  √  √  √   √ √   √  
Direct Parent PLUS Loan    √    
Direct Graduate/Professional PLUS Loan    √      
Perkins Loan  √  √  √ √   √  √
Outside                
Alternative/Private Educational Loan √  √   √  √ √ 

1Classification:  UG = Undergraduate, GR = Graduate, SB = Second Bachelors, TL = Teacher Licensure/Certification
2Enrollment Level:  FT = Full-Time, TQ = Three-Quarter-Time, HT = Half-Time, LT = Less-Than Half-Time 


Federal Direct Stafford Loan (Subsidized and Unsubsidized)

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Direct Stafford Loans are the Department of Education's major form of self-help aid. At ESU, funds for the Direct Stafford programs are borrowed from the Federal Treasury.   Direct Stafford Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. You will not be charged any interest as long as you are enrolled at least half-time in a degree-seeking program or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods.

There is also a time limitation placed on  subsidized loans. Beginning with loans originated on or after July 1, 2013, a new first-time borrower’s eligibility period for Direct Subsidized Loans will be limited to no more than 150% of the published length of the borrower’s academic program. The eligibility period for a 4-year degree would be 6 years. Once a student exceeds the 150% eligibility period any Direct Subsidized Loans disbursed on or after July 1, 2013 will lose their subsidy and the student will become responsible for the interest that accrues on those loans.

An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized -- that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. This will increase the amount you have to repay. If you choose to pay the interest as it accumulates, you'll repay less in the long run.

As of August 9, 2013, the subsidized interest rate and unsubsidized interest rate was changed to 3.86% for undergraduates.  Graduate students are not eligible for interest subsidies as of July 1, 2012, and the unsubsidized interest rate for graduate students was changed to 5.41%.  Please note that the interest rates also changed from fixed to variable-fixed, meaning that the interest rate can change every July 1, but any loan taken under that rate will remain fixed for the life of the loan. While signed into law on August 9, 2013, the interest rates are retroactive and affect any loan taken on or after July 1, 2013.  Also, as of July 1, 2013, origination fees of 1.051% for Direct Stafford Loans will be charged to all borrowers for loans that were first disbursed before December 1, 2013. New loans whose first disbursement is on or after December 1, 2013 will have an origination fee of 1.072%. 

Eligibility for Direct Stafford loans will be detailed on your award letter, and you must utilize BuzzIn to accept the award offer.  Once a loan has been accepted, the Office of Student Financial Aid and Scholarships will create a loan application on your behalf with the Department of Education.  The loan is not considered valid until the student has completed a Master Promissory Note (MPN) which serves as your application and promise to repay the loan.  The MPN can be completed by going to http://www.studentloans.gov. In addition to the MPN, students must also complete Direct Entrance Loan Counseling at least once at ESU.  Entrance Loan Counseling serves as a review of your rights and responsibilities as a Direct Stafford loan borrower, and loan proceeds cannot be disbursed unless a student has completed it.  This requirement can also be completed by going to http://www.studentloans.gov/.

You have the right to cancel all or a portion of Direct Stafford loan proceeds by contacting the Office of Student Financial Aid prior to disbursement or 14 days after disbursement. 

 


Federal Direct Parent PLUS Loan

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A Parent Loan for Undergraduate Students (PLUS) is a low-interest loan available for parents of dependent students. The PLUS is available without regard to financial need.  You may borrow up to the full cost of attendance, minus all other aid awarded.  However, satisfactory academic progress  as well as an adequate enrollment level is required. In addition, the lender (Federal Treasury) is required to determine whether the parent borrower has an adverse credit history.  Please note that the credit check is good for 90 days. If no disbursement is made under the credit check, a new application and credit check will need to be completed. Therefore, PLUS loan applicants are encouraged to wait at least 90 days before the funds are needed to complete a PLUS loan application. The parent borrower must be the natural or adoptive parent (or in some cases a stepparent) of a dependent student. Additionally, as the parent borrower, you will be responsible for repaying the loan.

As of August 9, 2013, the interest rate changed to 6.41%.  Please note that the interest rates also changed from fixed to variable-fixed, meaning that the interest rate can change every July 1, but any loan taken under that rate will remain fixed for the life of the loan. While signed into law on August 9, 2013, the interest rate is retroactive and affects any loan taken on or after July 1, 2013.

Loan repayment begins 60 days after the loan has been fully disbursed.  An optional deferment of repayment is available by contacting the Direct Loan Servicing Center at 800.848.0979.

PLUS loans are subject to a 4.204% origination fee whose first disbursement happen before December 1, 2013. New PLUS loans whose first disbursement is on or after December 1, 2013 will have a 4.288% orgination fee. 

Eligibility for PLUS loans will be detailed on your award package, and you must utilize BuzzIn to accept the award offer.  Once a loan has been accepted, the Office of Student Financial Aid and Scholarships will create a loan application with the Department of Education provided that the parent has completed a Master Promissory Note (MPN) and loan application.  These can be completed by going to www.studentloans.gov. When completing the PLUS application and PLUS loan master promissory note, the parent borrower should log in to the website using his/her Social Security Number and FAFSA PIN. If the parent applies for the loan and is denied, the student can be awarded additional unsubsidized Direct Stafford loans at the independent annual limits for their grade level.

You have the right to cancel all or a portion of the PLUS loan proceeds by contacting the Office of Student Financial Aid prior to disbursement or 14 days after disbursement. 


Federal Direct Graduate/Professional PLUS Loan

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Graduate and professional degree students are eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Direct Parent PLUS Loans also apply to Direct Graduate/Professional PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history and repayment beginning on the date of the last disbursement of the loan.  As of August 9, 2013, the interest rate changed to 6.41%.  Please note that the interest rates also changed from fixed to variable-fixed, meaning that the interest rate can change every July 1, but any loan taken under that rate will remain fixed for the life of the loan. While signed into law on August 9, 2013, the interest rate is retroactive and affects any loan taken on or after July 1, 2013.  Also, as of July 1, 2013, this program is subject to a loan fee of 4.204% of the loan amount whose first disbursement occurs before December 1, 2013.  For new loan whose first disbursement occurs on or after December 1, 2013 will be subject to a loan fee of 4.288%  Applicants must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Direct Stafford Loan Program before applying for a Direct Graduate/Professional PLUS loan.  Separate Entrance Loan Counseling is required prior to disbursement and can be completed by going to http://www.studentloans.gov/.  In addition to entrance loan counseling new borrowers must complete a Master Promissory Note (MPN) with Direct Lending to serve as their application and promise to repay the loan.  You can complete an MPN at http://www.studentloans.gov/.

If you are eligible for this loan program, please contact the Office of Student Financial Aid and Scholarships to review your eligibility. . 


Federal Perkins Loan

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This is a low-interest loan program funded by the federal government and ESU, with the university acting as lender. Currently, the maximum Perkins Loan award is $3,000 per academic year for ESU Kansas resident undergraduates, $4,000 for ESU non-resident undergraduates, and $5,000 for graduate students. Offers of the Perkins Loan are contingent upon availability of funds, demonstrated federal aid eligibility, and program requirements (Expected Family Contribution from the FAFSA must be Pell-eligible). The repayment period begins following a 9 month grace period, which begins after the student is no longer enrolled at least half-time in college. The loan carries a fixed interest rate of 5 percent, and the maximum repayment period is 10 years. 

The Office of Student Financial Aid and Scholarships will award Perkins loans to students who are eligible until funding is exhausted.  If you are eligible for the Perkins loan, and have not been awarded it, please contact the Office of Student Financial Aid and Scholarships to request to be placed on the waiting list for this fund.  Once awarded, you will need to accept the loan via BuzzIn.  You will also need to complete Perkins Entrance Loan Counseling and a Perkins Master Promissory Note.  Once the loan has been accepted on BuzzIn, the Student Loan Office transmits the borrower information to ECSI who handles all of ESU’s Perkins loans.  ECSI will provide information to you in regards to Entrance Loan Counseling and the Master Promissory Note.

Once you have graduated or ceased to be at least a half-time student, you will need to complete exit loan counseling which provides you with your rights and responsibilities as a loan borrower in repayment.  ECSI will provide you with information on completing exit loan counseling.


Alternative/Private Educational Loan

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Students may apply for an alternative or private educational loan through a lender; however, we recommend that you complete the FAFSA and use the Direct Stafford Loan program as your primary education loan source.  The Direct Stafford loans may have lower interest rates, better repayment terms, and loan forgiveness options.

Students who are interested in private educational loans may obtain more information at: http://www.emporia.edu/finaid/privateloans.html.