Loans and Payment Plans
Before you borrow from any loan program, we strongly recommend that you consider your total projected borrowing for 4 years of education, requirements of repayment, and your reasonable ability to repay the loans.
Federal Direct Student Loan (“FDSL”)
Federal Direct Student Loans (also known as stafford Loans) are low-interest loans from the U.S. Department of Education that carry a fixed interest rate. The interest rate for 2020-2021 for the subsidized and unsubsidized loans is 2.75%. Under the Bipartisan Student Loan Certainty Act of 2013 interest rates are determined each spring for the new loans made for the upcoming award year, which runs from July 1 to the following June 30. The loan is made to you, the student, and you are responsible for repayment. You must file a FAFSA to receive a Federal Direct Student Loan.
Depending on your demonstrated financial need, you may qualify for either a subsidized or unsubsidized FDSL. Subsidized FDSLs do not accrue interest while you are enrolled in school at least half-time. Unsubsidized FDSLs begin to accrue interest immediately. Repayment does not begin until 6 months after you cease to be enrolled at least half time.
The amount you can borrow depends on the number of credits you have successfully completed. If you have completed fewer than 30 credits, you may borrow up to $5,500 per year. If you have completed 30-59 credits, you may borrow up to $6,500 per year. And if you have completed 60 credits or more, you may borrow up to $7,500 per year. Between October 1, 2019 and September 30, 2020, a 1.059% fee is deducted from the gross loan amount before the funds are forwarded to the College, half in each semester. Between October 1, 2020 and September 30, 2021, that fee is 1.057%.
Institutions that enter into an agreement with a potential student, student or parent regarding Title IV, HEA loan are required to inform the student or parents that the loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
Federal Perkins Loan
Loans made through the Federal Perkins Loan Program are low-interest federal student loans for undergraduate students with exceptional financial need. Under federal law, the authority for schools to make new Perkins Loans ended on September 30, 2017, and final disbursements were permitted through June 30, 2018. If you already received a Perkins Loan, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment.
Massachusetts No Interest Loan (“NIL”)
The Commonwealth of Massachusetts provides limited loan funds to Massachusetts students who meet strict state eligibility criteria as determined on the FAFSA.
Awarded by the College, No Interest Loans are interest-free throughout the life of the loan. Repayment of the loan begins six months after you finish school.
Because of the College’s concern for student debt levels, the NIL is used to supplement the FDSL. Except in extreme situations, total borrowing in any given year is limited to a maximum of $7,500. Once your FDSL reaches maximum level, it is unlikely that you will be awarded a NIL as well.
At Stonehill, the NIL is considered a secondary loan source. Therefore, your NIL will be canceled if you decline your FDSL.
Federal Direct Parent Loan (“PLUS”)
Federal Direct Parent Loans are unsubsidized loans from the federal government that carry a fixed interest rate. The rate for 2020-2021 is 5.30%. Under the Bipartisan Student Loan Certainty Act of 2013 interest rates are determined each spring for the new loans made for the upcoming award year, which runs from July 1 to the following June 30. The loan is made to the parent of a dependent student, and the parent is responsible for repayment. The FAFSA must be completed prior to applying for the PLUS loan.
There is no application fee for a PLUS loan, but between October 1, 2019 and September 30, 2020 a 4.236% origination fee is deducted from the total loan proceeds before the funds are forwarded to the school each semester. Repayment of the loan can begin immediately, or may be deferred until the student is no longer enrolled at least half time.
Parents may borrow up to the cost of education minus any other financial aid received. The College will determine the actual amount that may be borrowed. Eligibility is dependent upon credit-worthiness.
If a parent borrower is denied a PLUS loan and the loan is subsequently approved or the parent has obtained an endorser, the borrower will be required to complete PLUS Credit Counseling on the www.studentloans.gov website before disbursement can be made.
Private Alternative Loans
Stonehill recommends exhausting all federal and family resources,or Federal Direct Plus Loans, before considering private alternative loans. Government loans are typically less expensive and carry more favorable repayment terms.
Students may Choose any Alternative Lender
Stonehill has identified lenders that our students have borrowed from in the past three years and who are still providing alternative loans. This is an historical list only and is not a list of recommended lenders.
The FASTChoice loan comparison tool is provided by Great Lakes Higher Education Assistance Corp. to assist students in comparing alternative loan rates and fees, repayment and deferment terms and lender disclosure notices. Students are not limited from using lenders on this list.
Stonehill Monthly Affordable Payment (MAP) Plan
Prepaid Tuition Plan