Loans

Students are encouraged to borrow only what they need and to seek outside scholarships and save summer earnings in order to reduce overall indebtedness. The Financial Aid Office works closely with students to achieve this goal.

Federal Direct Loans

The Federal Government provides loan funds to students that can be utilized to help finance higher education. Students must complete the FAFSA in order to be eligible for federal student loans. These loans are part of the financial aid award but must be repaid after school and will include an additional amount from added interest.

• Student Federal Direct Loan
• Parent PLUS Direct Loan

Effective JULY 15th, 2025, students planning on using their Federal Direct Loans will need to perform the following steps:

1. In the student’s MyGustavus account, navigate to Financial Aid-My Awards page and choose ‘Accept’ for the Direct Loan awards the student desires to use (subsidized and/or unsubsidized). 
   1. MyGustavus
2. First time borrowers must also complete the Entrance Counseling and Master Promissory Note with the Dept of Education. Entrance Counseling and Master Promissory Note steps can be completed by visiting www.studentaid.gov and logging in using the student FSA ID and password.
   1. Direct Loan Entrance Counseling
   2. Direct Loan Master Promissory Note
      
      

Students planning on NOT using their Federal Direct Loans can either take no action or perform step 1 above and choose “Decline” for the Direct Loan awards that the student desires to not use.

Once the student has completed all steps successfully, the Financial Aid office will apply the funding to the student's account. Federal Regulations dictate that funds cannot be applied to the student’s account any sooner than ten (10) days prior to the start of each term and that half of the accepted loan amount be applied to each the fall and spring semester.

Alternative/Private Lender Loans

Alternative/Private Lenders provide loan funds to students that can be utilized to help finance higher education. Alternative/Private Lender student loans are used to supplement the federal loan programs when federal aid, scholarships, and personal funding do not cover the cost of charged college expenses. These loans are not considered need-based loans and often (while not always) require a credit worthy co-signer. Private Loans are not guaranteed by the Federal Government and are not awarded as part of a student's initial financial aid package. Students may borrow an alternative/private lender loan through various participants such as banks or credit unions to help cover college expenses. Gustavus recommends that students consider exhausting their eligibility in the Student Federal Direct Loan program before borrowing through a private student loan program.

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

 Processing Tips for Private Lender Loans:

• Processing time will take from 20 to 30 days from application to disbursement due to truth in lending regulations.
• Loans are disbursed half in each semester.
• Plan your annual financial needs and complete the loan process by August 1.