Loans are funds provided by the federal government or financial institutions; federal loans require you to fill out the FAFSA
Loans must be repaid once you graduate or if you withdraw or drop to less than half-time enrollment. Each academic year, you’ll need to submit the FAFSA to Earlham to be eligible for federal loans. Since program cost and other aid you receive affect your eligibility for any Federal Direct Loan, your eligibility for loans is individually determined by Earlham’s Office of Financial Aid. The federal government offers two loans for students enrolled at least half-time: the Stafford Subsidized and the Stafford Unsubsidized. The difference between the two is that the government pays the interest on the subsidized loan (as long as you are enrolled at least half-time), while you are responsible for the interest on the unsubsidized loan.
Federal Loans
Under the U.S. Department of Education’s federal student loan program, you may borrow funds from the federal government to help pay for your education. A federal student loan must be repaid along with accrued interest. There are five types of loans available:
Federal Subsidized Stafford Loan
Earlham College uses federal funds to offer Federal Direct Stafford Loans directly to students as borrowers. Annual maximums are listed below.
- $3,500 for first-year students (students with fewer than 29 semester credits)
- $4,500 for second-year students (students with at least 29 but fewer than 59 semester credits)
- $5,500 for third-and fourth-year students (students with 59 credits or more)
The interest rate for the Federal Subsidized Stafford Loan can vary depending on the date of the first disbursement of the loan. All interest rates for this loan are fixed for the life of the loan. Interest rates for federal student loans are determined by Congress. For more information about interest rates, please visit studentaid.ed.gov/sa/types/loans/interest-rates. The Federal Subsidized Stafford Loan is an interest-free loan while you are enrolled at least half time.
A required origination fee is deducted at the time of disbursement. The net proceeds of the loan for first-time borrowers will not be credited to your account until loan entrance counseling and a Master Promissory Note (MPN) have been completed. These can be completed at using your FSA ID and password. Borrowers are advised to read all of the documentation fully before signing.
As a dependent undergraduate student, you may borrow a cumulative maximum of $23,000 if eligible. Lower limits may apply for students attending less than a full academic year. The Financial Aid Offer indicates the maximum you are eligible to borrow for a particular academic year.
Students who have borrowed Federal Subsidized Stafford Loans must complete exit counseling when finishing their academic careers at Earlham College.
The Office of Financial Aid electronically notifies borrowers when the loan has been disbursed. Borrowers may cancel all or a portion of the Federal Subsidized Stafford Loan disbursement by submitting a written request dig this to the Office of Financial Aid within 15 days of receiving the disbursement notice that the Direct Loan has been disbursed.
Federal Unsubsidized Stafford Loan
If you are eligible for the Federal Subsidized Stafford Loan, the maximum you can receive for the Federal Unsubsidized Stafford Loan is $2,000. If you are not eligible for the Federal Subsidized Stafford Loan, you can obtain the Federal Unsubsidized Stafford Loan.
- $5,500 minus any Federal Subsidized Stafford Loan for first-year students (students with fewer than 29 semester credits)
- $6,500 minus any Federal Subsidized Stafford Loan for second-year students (students with at least 29 but fewer than 59 semester credits)
- $7,500 minus any Federal Subsidized Stafford Loan for third-and fourth-year students (students with 59 credits or more)
