Loans

A variety of loans and programs can help in funding your education. A loan will require repayment, and most repayment plans begin six months after you leave school.

College Affordability

Mount Mercy is committed to making your education affordable. Check out these resources:

FAFSA

Scholarships

College affordability (PDF)

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 5.49% interest rate for undergraduates, 7.05% interest rate for graduates (2023–24)
  • Eligibility based on financial need
  • Principal and interest is deferred while enrolled at least half-time
  • First-years (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 5.49% interest rate for undergraduate students, 7.05% for graduates (2023–24)
  • 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 8.05% interest rate for Grad PLUS and PLUS (2023–24)
  • 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
  • Applications are directly processed in our Financial Aid Office, please reach out for more information

Private Loans

Education loans are available from several private lenders. These loans are available to help families fill the gap in paying for college however, they should never be your primary funding source.

Mount Mercy has worked to create a preferred lender list. Lenders were evaluated based on interest rates, customer service, past due balance options and repayment options. All the information provided is reviewed annually to ensure that the benefits offered by the lenders continue to adhere to our criteria. Mount Mercy is prohibited from accepting any financial or other benefits in exchange for displaying lenders and loan options.

Students may borrow from the lender of their choice, including those not presented on this preferred lender list. The financial aid office will process your loan application without delay regardless of your lender choice.

Some things to consider before selecting a private loan:

  • We encourage you to utilize your maximum federal financial aid eligibility before borrowing a private student loan.
  • Most private loans require a credit-worthy cosigner.
  • Private loans usually take anywhere between 2-6 weeks to process so begin the process as early as possible.
  • If you have additional questions, please contact the Financial Aid Office at 319-368-6467.

Mount Mercy adheres to a Code of Conduct for Educational Loans, which can be found here.

View our Preferred Lender List.