Loans

2010-11 Loan Options

All new and current students and parents who are interested in utilizing loans for the 2010-11 award year will be able to view loan information posted after June 1, 2010.

We are encouraging all students who wish to utilize loans for the 2010-11 school year to wait for information from our office before making an application as the loan process will change after the end of this current year.

The following links will take you to a list of lender options for each type of loan. These are suggested lenders from the Office of Financial Aid at Trine University. We provide the lists to assist you in choosing the lender that best fits your needs. We encourage you to use one of the lenders listed; however, if you are interested in any lender not on the list please let the Office of Financial Aid know so we may accommodate you. These lenders were chosen based on their years in the industry offering student loans, customer service to both our students and our school and ease of application for both students and parents.

Direct Stafford Loans

Direct PLUS Loans

Private Alternative Education Loans

 

Loan Options for Students and Their Parents at Trine University:

NOTE: On March 25, 2010, the U.S. House of Representatives and the U.S. Senate passed The Health Care and Education Affordability Reconciliation Act of 2010 ("HCEARA"-H.R. 4872) . This bill makes major changes in several federal student aid programs AND mandates that, effective July 1, 2010, all federal student loans (Stafford, PLUS, and Grad PLUS) will be originated through the Federal Direct Loan Program. The Family Federal Education Loan Program, which permitted private lenders to originate these loans, is eliminated effective June 30, 2010.

President Obama signed the bill into law on March 30, 2010.

Effective for the 2010-11 academic year, Trine University will participate in the Federal Direct Loan Program. This change affects ALL returning students and their parents who wish to borrow through the Federal Direct Stafford Loan and the Federal Direct PLUS programs. When you borrow from the Direct Loan Program, the loan money comes from the federal government directly to Trine.The loan proceeds are applied to your student account toward your tuition, room/board and fees.Once your student account is paid in full, any remaining loan funds are issued in a refund to the student.

Federal Direct Stafford Loan

Trine University participates in the Federal Direct Stafford Loan program. The lender for this is the U.S. Treasury Department through the Department of Education. There are two types of Stafford Loans through the Federal Direct Loan program: subsidized and unsubsidized. Below is information regarding terms and application instructions for each program.

Federal Direct Subsidized Stafford Loan Terms

• Need-based loan with interest paid by the federal government during enrollment period
• Interest rate fixed at 4.5% for the 2010-11 school year
• Annual maximum amounts based on eligibility: $3,500 for freshman, $4,500 for sophomores, $5,500 for juniors and seniors
• Origination fee of 1.0% with an upfront interest rate rebate of 0.5%, which results in a net origination fee of 0.5%. This fee is deducted proportionally from each disbursement. (Note that the upfront interest rebate fee will be added back to the loan if the first 12 scheduled monthly payments during the repayment period are not on time)
• Repayment begins six months after the student graduates or is enrolled less than half time, with ten years to repay.

Federal Direct Unsubsidized Stafford Loan Terms

• Non-need-based loan with interest paid by the borrower on a monthly basis during the enrollment period or deferred and added to the principal amount when repayment of the principal begins
• Interest rate fixed at 6.8%
• Annual maximum amounts including subsidized and unsubsidized loans, and based on eligibility: $5,500 for freshman, $6,500 for sophomores, $7,500 for juniors and seniors
• Origination fee of 1.0% with an upfront interest rate rebate of 0.5%, which results in a net origination fee of 0.5%. This fee is deducted proportionally from each disbursement. (Note that the upfront interest rebate fee will be added back to the loan if the first 12 scheduled monthly payments during the repayment period are not on time)
• Repayment of the interest may begin upon disbursement of funds and while in-school , or it can be deferred and added to the principal amount when repayment of the principal begins six months after the student graduates or is enrolled less than half time, with 10 years to repay

Stafford Interest Rates/Loan Amounts

How to Apply for a Federal Direct Stafford Loan:

• Complete the FAFSA (Free Application for Federal Student Aid), online at www.fafsa.gov .
• Provide any documents requested by our office, and accept your federal student loans in one of two ways. Online (https://mytrinefa.trine.edu ) or by signing and returning a paper copy of your Financial Aid award letter.This gives us permission to transmit your information to the Department of Education.
• All students will need to complete an “Entrance Counseling” Session. We are requiring all borrowers to complete this short session (which is available online) to review your rights and responsibilities under the federal loan programs. You must complete Entrance Counseling even if you have previously borrowed federal loans.
• ALL students will have to complete a new Master Promissory Note for the Direct Loan program before the Department of Education will electronically disburse your funds to Trine University.

Federal Direct PLUS

Trine University participates in the Federal Direct PLUS program and the lender is the U.S. Treasury through the Department of Education. Parents can borrow up to the full cost of education, less any other financial aid (see Financial Aid award letter). Many parents choose to borrow just a portion of the cost to supplement contributions from other family resources, such as income and savings. Eligibility requirements for this loan mandate that the student and parent borrower must be either citizens or permanent residents of the United States.

Federal Direct PLUS Terms

• Approval for this loan is based on a credit report
• Parents may borrow up to the full cost of education, less any other financial aid, including other educational borrowing and federal work-study
• Interest rate fixed at 7.9%
• Interest accrues after the first disbursement, but the first payment is not due until approximately 60 days after the final disbursement
• There is a 4% origination fee with an upfront interest rebate of 1.5% which results in a net fee of 2.5%. This fee is deducted proportionally from each disbursement. (Note that the upfront interest rebate fee will be added back to the loan if the first 12 scheduled monthly payments are not made on time.)
• Repayment of the interest and principal of the Federal Direct PLUS begins 60 days following the final disbursement of the year
• Parents are able to make interest-only payments and defer repayment of the principal of their PLUS while the student continues to be enrolled at least half-time. To request an "in-school deferment" from the Department of Education, parents may contact the Department of Education at 800-848-0979 or may complete and submit the appropriate deferment form to the Department of Education.
• If parents begin repayment 60 days following the final disbursement for the academic year and if they temporarily cannot meet the repayment schedule, they can request forbearance and postpone or reduce the payments on their loan by contacting the Department of Education at 800-848-0979 or by completing and submitting the appropriate forbearance form
• The Federal Direct PLUS is unsubsidized so parents will be charged interest during periods of deferment or forbearance. If they don't pay the interest as it accrues, it will be capitalized (that is, added to the principal amount of the loan) and additional interest will be based on that higher amount
• The repayment period is normally 10 years, not including periods of deferment or forbearance
• If parents are denied the Federal Direct PLUS, they may reapply with an endorser online at studentloans.gov or the student may borrow additional funds through the unsubsidized Federal Direct Stafford Loan program. Before the Financial Aid Office can process the additional Federal Direct Unsubsidized Stafford Loan, the student must sign a revised Financial Aid Award Letter. The amount a student may borrow will be determined by the Financial Aid Office with a maximum of $4,000 for first- and second-year students and $5,000 for third- and fourth-year students.

How to Apply for a Federal Direct PLUS loan:

• Complete the FAFSA (Free Application for Federal Student Aid), you can complete the FAFSA online at www.fafsa.gov .
• Complete the PLUS loan request form and return to the Financial Aid Office. On this form you must indicate an amount you wish to borrow through the Federal Direct PLUS loan program. If you do not give an exact amount your request will not be processed and could postpone the entire process.
• Refer to your financial aid award letter for an estimated PLUS loan amount. NOTE: the amount on your award letter is simply an estimation and may not be enough to cover all expenses. It is important to consider all costs before finalizing an amount.
• The Financial Aid Office will request a credit check with the Department of Education to determine if you are approved/denied. You will receive instructions via e-mail from the Financial Aid Office with your next steps. It is important that you wait for these instructions before proceeding to the Federal Direct PLUS Master Promissory Note.
• If credit check is approved complete the electronic Federal Direct PLUS Master Promissory Note
• If credit check is denied, the Financial Aid Office will contact the student with additional Stafford Unsubsidized loan eligibility. A “revised” award letter must be signed if accepting any portion of the additional student loan.

You may contact the Financial Aid Office at anytime if you wish to cancel all or a portion of any Federal Direct Stafford or PLUS loan.

How We Choose Our Lender List
As a service to our student and parent educational loan borrowers, we have attempted to identify a list of lending institutions who we believe offer quality customer service and benefits with their respective federal and/or non-federal loan products.The composition of our lender options is the result of our a "request for information" process, whereby interested lenders submit information about their loan products for our consideration. The main criteria we expect from lenders include all of the following:

• reliable customer service (including service during processing and repayment);
• competitive loan products (including competitive fees and interest rates);
• electronic disbursement of funds;
• allowance for borrower electronic repayment of loan funds; and
• cost saving benefits to borrowers throughout the life a loan.

We want to assure all educational loan borrowers that Trine's Financial Aid Offices do not receive any form of payment or remuneration from lenders in exchange for inclusion on our lender listing. As long time members of the National Association of Student Financial Aid Administrators (NASFAA), the employees of Trine University Financial Aid Offices fully adhere to NASFAA's Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals.

Please know there is absolutely no obligation for borrowers to select a lender from our lender listing. Student and/or parent borrowers have the right to select a lender of their choice. Per federal and institutional guidelines, the University Financial Aid Offices will process any loan from any lender. Finally, we wish to point out that our list of lenders is not in any order of preference. We highly recommend that a borrower's lender choice be carefully considered as to what is best for the borrower and with the intent that one will remain with the same lender throughout one's studies at Trine.

SCHOOL CODE OF CONDUCT FOR
FEDERAL STUDENT LOAN PROGRAM

January 2010

This code of conduct applies to all employees, officers and agents - particularly to all who have responsibilities with respect to Federal Student Aid and student loans.

Trine University will not:

• Assign lenders to first time borrowers
• Cause unnecessary loan certification delays for lenders not on the preferred lender list. However, some delays may occur when a lender is selected that does not have suitable technical compatibilities with our normal loan processing.
• Choose lenders for the preferred lender list that have offered or provided inducements to this school.

Trine prohibits the following activities:

• All revenue sharing between lenders and this school (loan volume in exchange for money or gifts)
• Financial Aid/Business Office employees and their family members receiving gifts* from lenders or guarantors or servicers
• Contracting between school employees and lenders
• Opportunity pool loans
• Staffing assistance provided by lenders
• Printing costs or services provided by lenders
• Delaying loan certification based on borrower choice of lender
• Trine officers and employees receiving remuneration for service as a member or participant of an advisory board of a guarantor or lending institution involved in higher education loans, with the exception of receiving reasonable travel expense reimbursement.

*Definition of “gifts” - a gift is any gratuity, favor, discount, entertainment, hospitality, loan, or other item having greater than a small monetary value (approximately $10). A gift is not:

• a brochure, workshop, or training using standard materials relating to a loan, default aversion, or financial literacy
• food, training, or informational material provided as part of a training session designed to improve the service of a lender, guarantor, or servicer if the training contributes to the professional development of the institution’s officer, employee or agent
• favorable terms and benefits on an education loan provided to a student employed by the institution if those terms and benefits are comparable to those provided to all students at the institution
• Philanthropic contributions from a lender, guarantor, or servicer that are unrelated to education loans or any contribution that is not made in exchange for advantage related to education loans

If you have specific questions about loans, please contact the Financial Aid Office at 800.347.4878 (option 2) or finaid@trine.edu.