Policies
Federal Loans ( Direct Subsidized & Unsubsidized, Perkins, and Direct Parent Loans for Undergraduate Students [PLUS]): Federal Direct Subsidized , Direct Unsubsidized, and Perkins loans are funds that a student is required to repay after graduating from college (or once no longer enrolled at least half time). Direct Parent Loans for Undergraduate Students (PLUS) are funds that a credit-worthy parent may borrow. Direct PLUS loans begin repayment while the student is in school, however, deferment may be requested. To be considered for a Federal Loan, you must complete the FAFSA.

View important deadlines - View detail on each type of loan

Lehigh University Tuition Loans: Lehigh University Tuition Loans are funds that are awarded based on financial need, and are required to be repaid. To be considered for a Lehigh University Tuition Loan, you must complete the FAFSA, CSS PROFILE, and submit the appropriate years' tax returns (other forms may also be required).

View important deadlines - View detail of each type of loan

Loan Cancellation: A Loan Cancellation award may be awarded to full-time students who fail to meet the minimum academic renewal requirements and have been approved through the Financial Aid Committee.  This type of loan has the potential of being converted to a grant if the student meets the minimum academic renewal requirements after a given time period. To be considered for a Loan Cancellation, you must complete the FAFSA, CSS PROFILE, and submit the appropriate years' tax returns (other forms may also be required).

View important deadlines - View detail of each type of loan

Private/Alternative Loans: A Private/Alternative Loan is a loan that a student can borrow to help finance the family’s expected contribution. These loans are based on the student’s credit history with the best interest rates given to students who have credit-worthy co-borrowers. (A student who has not established credit can apply with a co-borrower and can borrow up to the cost of attendance minus any aid received). We strongly recommend that you carefully review all the terms of each individual loan, as they can vary greatly. Individual loan providers have their own application and timeline. Plan to apply at least 30 days prior to the date the bill is due.

Eligibility

Value of award

Disbursement

Interest & Repayment

Federal Perkins Loan

Full-time students who demonstrate exceptional financial need.

Varies according to unmet financial need and available funds. Up to $3,000 annually.

Credited directly to student account no sooner than ten days prior to the semester's first day of class or upon completion of the promissory note and disclosure statement.

Federally funded. Fixed interest rate of 5%. Repayment begins 9 months after student graduates or ceases to be enrolled at least half-time.

Federal Direct Loans (Subsidized or Unsubsidized)

Students enrolled at least half-time.

Loan amounts vary by grade level; Visit the Federal Direct Loan Program website for loan limits by grade level.

Credited directly to student account no sooner than ten days prior to the semester's first day of class or upon completion of the Master Promissory Note (MPN).

Federally funded, subsidized portions based on need

Subsidized: No interest accrues while student is enrolled (at least half-time) or within the grace period.

Visit studentaid.ed.gov for interest rates.

Repayment for both types begins 6 months after student graduates or ceases to be enrolled at least half-time.

University Tuition Loan

Awarded to supplement Federal Direct Loan eligibility as part of need-based financial aid.

Up to $5,000 per year.

Credited directly to student account upon completion of the Promissory Note and Personal & Confidential Statement

Institutionally funded. Fixed interest rate of 7%. Repayment begins 3 months after student graduates or ceases to be enrolled at least half-time.

Loan – Cancellation (LC)

Full-time continuing students who fail to meet the minimum academic renewal requirements upon approval of the Financial Aid Committee. Up to $4,000 per year Credited directly to student account upon completion of the Loan Cancellation Note and Personal & Confidential Statement

Institutionally funded. If the loan does not convert to a grant; Fixed interest rate of 7%. Repayment begins 3 months after student graduates or ceases to be enrolled at least half-time.

Federal Direct PLUS Loan

Parents of dependent undergraduate students enrolled at least half-time. Parent may not have adverse credit history.

Up to the cost of attendance less any financial aid received.

 

Federally funded. Visit studentaid.ed.gov for interest rates. Repayment begins 60 days after final disbursement for enrollment period.

 

The William D. Ford Federal Direct Loan Program is available to students enrolled at least half time in an undergraduate or graduate degree program. As this is a federal program, a student must file the FAFSA (Free Application for Federal Student Aid) to be offered this loan. Eligibility for a Federal Direct Loan is based on cost of education, the amount of other financial aid being received and the expected family contribution.

There are both subsidized and unsubsidized components of the William D. ford Federal Direct Loan Program. A student is offered one or both of these components based on the demonstrated financial need of the family. The basic difference between the two components is that the federal government pays the interest on the subsidized Direct Loan while the student is in school and the student pays the interest on the unsubsidized portion. When receiving an Federal Direct Unsubsidized Loan, the student also has the option to capitalize interest payments (add interest to the principal balance).

THE APPLICATION PROCESS FOR FEDERAL DIRECT LOANS

To apply for a Federal Direct Loan a student must complete and submit the following information:

  1. Complete the Free Application for Federal Student Aid (FAFSA). You will need to obtain a government PIN, if you do not already have one.
  2. If selected for federal verification (as indicated on your Student Aid Report (SAR)), complete the verification process.
  3. Complete Entrance Counseling: Federal regulations require the completion of entrance counseling prior to obtaining a Federal Direct Loan for the first time, and exit counseling if you are graduating, withdraw or drop to less than half-time status. This session provides information to help you fully understand your rights and obligations as a student loan borrower.
  4. Complete the Direct Loan Master Promissory Note (MPN) : First time borrowers of a Federal Direct Loan must complete a Master Promissory Note (MPN) prior to disbursement. The MPN acts as the loan application and is valid for 10 years from the date of completion. You only need to complete one Federal Direct Loan MPN whether it is subsidized or unsubsidized.

The Federal Direct Parent Loan for Undergraduate Students (Parent PLUS Loan) offers parents an alternative means of financing the student's education. This program may be used to bridge the gap between cost of attendance and traditional need-based and/or merit-based assistance. Unlike the Federal Direct Loan, the Parent PLUS Loan program requires that a borrower be creditworthy. Parents borrowing for the first time must complete a Direct Parent PLUS Master Promissory Note (MPN) which is valid for 10 years. In addition, a yearly Direct Parent PLUS loan application must be completed to confirm the borrower is creditworthy.

To Apply for a Direct Parent PLUS loan the parent must complete and submit the following:

  1. Complete the Free Application for Federal Student Aid (FAFSA). You will need to obtain a government PIN, if you do not already have one.
  2. Complete the Direct PLUS Loan Master Promissory Note (MPN) : First time borrowers of a Federal Direct PLUS Loan must complete a Master Promissory Note (MPN) prior to disbursement. Parents completing a PLUS eMPN must use their own PIN number, and not their child's PIN number. Electronically sign (e-sign) the promissory note to efficiently deliver the funds to the studentís account.
apply for aid