Loans

Federal Direct Loans

You can borrow directly from the federal government to help finance your Gustavus education. To qualify for a loan, you’ll complete the FAFSA. Remember that you’ll need to repay your loan after graduation, and that the government will charge interest.

There are two types of federal direct loans:

• Student Federal Direct Loan 

  Direct subsidized loans are for students with financial need. These loans offer slightly better terms to support borrowers.

  Direct unsubsidized loans are available to any student, regardless of financial need. You’ll pay all of the interest on this type of loan.

• Parent PLUS Direct Loan

  In most cases, your parents can borrow up to $20,000 from the federal government to help pay for your education. The application process requires both a FAFSA and a credit check. Get more information at studentaid.gov. 

Take Action on Your Federal Loan

To accept or decline a Student Federal Direct Loan, please take the following steps:

In your MyGustavus account:

1. Navigate and log into your Gustavus Self-Service.
2. Select ‘Financial Aid’ in the upper left corner.
3. Select the ‘My Awards’ option from the subsequent dropdown menu.
4. On the awards listing page, scroll down to the ‘Loans’ section.

5. Click the ‘Accept or Decline’ link for each loan that appears on the page.

   Not all Gusties will see the same option(s) on this screen. You may see both a subsidized and unsubsidized loan option. Or you may just see one or the other. You must complete the action to accept and/or decline the options listed on your award page.
    

First-Time Borrowers

If you haven’t previously used your Direct Loan(s), you’ll be required to complete two more items before you can receive your loan money:  

• Master Promissory Note 

  This legal document is your promise to repay your loan to the federal government.

• Direct Loan Entrance Counseling  

  Understand your loan, how interest works, repayment options, and how to avoid delinquency.  

A Word About Timing

Allow two to three days for the online system to update after you accept your loans and complete the Master Promissory Note and entrance counseling. Don’t be alarmed if the system shows these items as incomplete. Just wait two or three days, and then confirm that everything is marked as complete.
 

Private/Alternative Lender Loans

If your total aid package falls short of covering your college costs, private or alternative lenders can bridge the gap. These private loans aren’t guaranteed by the federal government and are not awarded as part of your initial financial aid package. They don’t factor in financial need, but they often require a credit-worthy cosigner. 

Federal loans may offer better terms. Before you borrow from a private lender, the Gustavus Financial Aid Office recommends you exhaust your eligibility for federal loans. 
 

• Student Alternative/Private Lender Loans
   
• Parent Alternative/Private Lender Loans

Loan Repayment

Most federal loans offer a six-month grace period after graduation before you must begin repaying the loan. Deferment and forbearance plans may be offered in certain situations, such as a return to school or a period of unemployment. Private loans offer varying repayment terms. 

Keeping Your Aid

Each year, you’ll accept or decline your loans in MyGustavus. To keep your funding, you’ll need to maintain satisfactory academic progress and fill out the FAFSA each year.