Loans

Federal Loans

The federal government offers loans for students regardless of credit history or current finances. Many of these loans do not accrue interest while you are enrolled in school, provided you maintain minimum course hours. 

William D. Ford Subsidized Stafford Loans

• Fixed at a 3.73% interest rate (2021–22)
• Eligibility based on financial need
• Principal and interest is deferred while enrolled at least half-time
• Freshmen (0-30 hours) can borrow up to $3,500
• Sophomores (30-59 hours) can borrow up to $4,500
• Junior and seniors (60+ hours) can borrow up to $5,500
• Repayment begins six months after graduation or if enrollment drops below half-time
• Repayment may run 10-25 years
• Government pays interest until repayment begins

William D. Ford Unsubsidized Stafford Loans

• Fixed at a 3.73% interest rate for undergraduate students and 5.28% for graduate and professional students (2021–22)
• Eligibility not based on financial need
• If student is not eligible for a subsidized loan, he/she is usually eligible for unsubsidized
• Principal is deferred while enrolled at least half-time
• Undergraduate amount vary by grade level and dependency status
• Graduate and professional students may borrow up to $20,500 per academic year
• Repayment begins six months after graduation or if enrollment drops below half-time
• Repayment may run 10–25 years (same as subsidized loans)
• Interest begins to accrue when loan is disbursed but may be deferred and capitalized at start of repayment

Parent PLUS Loan for Undergraduate Students or Grad PLUS Loan for Graduate Students

• Fixed at a 6.28% interest rate (2021–22)
• Available to parents of undergraduate students or students enrolled in a graduate or professional program
• Credit based
• Amount of eligibility is determined by difference between school costs minus student's estimated financial assistance
• Can be deferred by contacting Direct Loan
• Interest begins to accrue when loan is disbursed

Private Loans

Education loans are available from a number of private lenders. These loans typically require a credit check and, in most cases, a cosigner. Private loans must be repaid, and repayment typically begins once the student is no longer enrolled at least 1/2 time (6 or more credit hours).

Mount Mercy works with a variety of lenders, and it's up to the student and family to decide which private lender they would like to use. For additional information on private loans or to review a historical list of lenders Mount Mercy students have used, please visit our FASTChoice website.