Financial Aid: Loans

Types of Loans

    Federal Direct Loans

    The Federal Direct Loan is a long-term, low-interest loan that is awarded by the Office of Financial Aid. The lender is the U.S. Department of Education.  This loan is not based upon your credit history or income.  The amount you may receive for the academic year is based on your financial need and academic level and is determined by the Office of Financial Aid.

    Repayment of the principal begins 6 months after you cease half-time enrollment, and the average repayment term is 10 years.

    Interest Rates

    Current interest rates on all Federal Direct Loans are fixed.

    Loan TypeGrade LevelFirst Disbursed Between 7/1/21 and 7/1/22
    Subsidized Loans Undergraduate 3.73%
    Unsubsidized Loans Undergraduate
    PLUS Loans Parent

    Note: The interest rates for federal student loans are determined by federal law. If there are future changes to federal law that affect federal student loan interest rates, we will update this page to reflect those changes.

    Borrower Eligibility

    Degree seeking students who are enrolled at least half-time may receive Direct Loan funding as long as they meet all general eligibility requirements.

    Borrowing Limits

    The Direct Loan amount shown on the student’s financial aid award is the Financial Aid Office’s estimate of the student’s eligibility. As a general rule, the following grade-level maximums apply.

    Year in SchoolBase AmountAdditional Unsubsidized*Additional Unsubsidized
    Freshman 0-29 Credits $3,500 $2,000 $4,000
    Sophomore 30-59 Credits $4,500 $2,000 $4,000
    Junior 60-89 Credits $5,500 $2,000 $5,000
    Senior 90+ Credits $5,500 $2,000 $5,000


    When it comes time to start repaying your student loan(s), you can select a repayment plan that’s right for your financial situation. Generally, you'll have from 10 to 25 years to repay your loan, depending on which repayment plan you choose.

    Planning for repayment is essential to your credit health. Detailed information and repayment calculators.


    Under certain conditions, federal regulations allow students to defer loan repayment. The most common deferments are for enrollment on at least a half-time basis, unemployment, and economic hardship. During a deferment, the federal government will pay interest that accrues on any subsidized funds. Interest on unsubsidized loans is the student’s responsibility.

      How Do I Apply?

      Complete the FAFSA online to apply for financial aid. 

      1. Review your Financial Aid Award letter.
        All eligible students are offered a Federal Direct Loan.  If you want to reduce or decline your loan entirely, please email the Financial Aid Office at  In the subject of the email put: “Cancel/reduce my loan.”   In the body of the email, provide your Marywood student ID, first and last name and instructions to reduce or adjust your loan.

      2. Complete the Master Promissory Note (MPN) and Loan Counseling.
        The Financial Aid Office will originate your loan electronically with the US Department of Education.  If this is your first Direct Loan, you must sign a Direct Loan Master Promissory Note (MPN) via the web and complete Entrance Loan Counseling at

      3. Receive your loan funds.
        After you have signed the MPN and you have completed Entrance Loan Counseling, your loan will be scheduled for disbursement. If your loan is for the full academic year, your loan will be disbursed in two equal disbursements – one at the beginning of the fall semester and one at the beginning of the spring semester. Your loan funds will first offset any outstanding charges you owe the university for the semester, and after your charges are paid in full, a refund of any excess loan proceeds will be disbursed to you by check.

      4. The National Student Loan Data System (NSLDS) is the US Department of Education's centralized resource for information about all federal student loans that you have borrowed. You can find information about all of your current and prior student loans, even those you may have borrowed at a prior college or university.

      PLUS (Parent Loans)

      Parents can borrow a PLUS Loan to help pay your education expenses if you are a dependent undergraduate student enrolled at least half-time in an eligible program at an eligible school. Interest rates and repayment provisions on PLUS loans can sometimes be more favorable to a borrower than other consumer loans available for educational expenses. Complete the FAFSA prior to applying for the Plus loan online at

      Parents are required to pass a credit check when they are applying for the PLUS loan. If a parent's application for a PLUS loan is denied based on the borrower's credit history, the student may become eligible for an additional unsubsidized student loan. Freshmen and sophomore students can borrow up to $4,000 in additional unsubsidized loans, while juniors and seniors can borrow up to $5,000 in additional unsubsidized loans.

      Application Process

      • The parent borrower submits the Parent PLUS Loan Request Process.
      • The federal loan processing center will review borrower’s credit history to determine eligibility.
      • Once the PLUS loan has been approved, the parent will be instructed to sign a Master Promissory Note.
      • The Financial Aid Office will originate the parent PLUS loan.
      • Loan proceeds will be used to pay outstanding charges on the student’s billing account in the University Cashier’s Office.
      • If there are remaining funds available after the authorized charges are paid, a refund will be made available to the student or parent depending upon the parent’s designation when completing the PLUS application.
      • Because a credit decision only lasts for 90 days, parents are encouraged to wait until July 1 immediately preceding the start of each new academic year before making application for a PLUS loan. If the 90 days expire before the loan is disbursed, parents may need to make a new application with a new credit check.

      PLUS (Graduate and Professional Degree Students)

      The Federal Graduate PLUS Loan is a Federal loan program which allows Graduate and Professional students to borrow a low interest federally backed student loan when Federal Direct Loan eligibility has been exhausted. Like the Parent PLUS Loan, the Graduate PLUS Loan can be used to pay for the total cost of attendance minus any financial aid you've already been awarded. Also like the Parent PLUS Loan, eligibility for the Graduate PLUS Loan is largely dependent on the borrower's credit rating and history. Students should follow the same application process outlined above for parent borrowers, beginning with the Graduate PLUS Loan Request Process . First-time Graduate PLUS borrowers must complete a Master Promissory Note (MPN) and complete Entrance Loan Counseling.

      Resolving Loan Disputes and Problems

      The SFA Ombudsman's Office has been created by the U.S. Department of Education to help student loan borrowers resolve loan disputes and problems.

      The Ombudsman Customer Service Line is (877) 557-2575.

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      Is This the Best Loan for Me?

      Federal Direct Subsidized and Unsubsidized Loans are generally the best options and should be your first consideration. The maximum interest rates and fees on these loans are set by federal law, so the terms and conditions for these loans are clearly defined and will not change over time.  Additional information regarding the differences between federal and private loans.

      About Private Loans

      Private loans, also known as alternative loans, offer another type of loan. Sometimes students and their families choose to borrow private loans because they may be offered a competitive interest rate and repayment term that they'd prefer over the Federal PLUS Loan options. If you are interested in taking out an alternative loan, please visit for a list of lenders commonly used by Marywood students.

      Applying For Private Loans

      Students will need to apply directly with the lender of their choice.  Most students will be required to have someone cosign the loan application.  Interest rates for loans are determined by the lender based on the student and cosigners credit-worthiness.  If you have any questions about an alternative loan, you may contact the lender directly. 

      Private Loan Providers

      For a list of private lenders and a comparison of the loan terms offered, please visit

    Loan Tips & Resources

    Before You Borrow

    Choosing to borrow an educational loan is a decision that you should consider seriously before entering into a loan agreement. Loans can be a wonderful way to make attending college possible, but many students enter into loan agreements without fully understanding what they're signing. 

    Cohort Default Rate

    A cohort default rate is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan Program (FFEL) or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year.

    Marywood University's most recent cohort default rate is 3.9%.  

    How Much Should I Borrow?

    You should never borrow more than you absolutely need to attend school. Loans must be repaid when you're no longer enrolled in school, and you need to be very realistic about your ability to repay student loan debt based on what you anticipate your future annual income will be. Check out the Loan Payment Calculator available on to see what your monthly payments might be at various borrowing levels.

    Students are strongly advised to borrow through the Federal Direct Subsidized and Unsubsidized Loan program first. If additional loan funds are still needed, we suggest either the Federal Direct PLUS (for the parents of dependent students),the Federal Direct Graduate PLUS (for graduate students), or a private educational loan.

    Deny or Reduce Your Loan

    Marywood University awards Federal Direct Loans under the “passive confirmation process,” meaning that we assume students want their Federal Direct Loan as packaged unless otherwise notifiedStudents who wish to deny or reduce their loans must notify the Financial Aid Office by completing our "Loan Reduction/Cancellation Request" on our forms page.

    Additional information on Federal Direct Loans


    American Education Services (AES)

    AES provides a wide range of services aimed at helping you finance your education. They offer up-to-date information about changes in federal student loans and interactive planners and calculators to help estimate long-term costs. Customer Service: 1-800-443-0646.

    You Can Deal With It

    Find practical and easy-to-understand advice on how to deal with financing college by visiting the You Can Deal With It website.

    Code of Conduct

    Marywood University adheres to a Code of Conduct which was created to provide transparency between Marywood University and private education lenders. The goal of the Financial Aid Office is to provide students with the information they need to make good decisions about borrowing and to select the types of loan(s) and the lender(s) that offer the best terms for their particular needs.  Visit for information on private education loans.

      Marywood University is committed to providing students and their families with the best information and processing alternatives available regarding student borrowing. In support of this and in an effort to rule out any perceived or actual conflict of interest between Marywood University officers, employees or agents and education loan lenders, Marywood University, hereinafter referred to as the UNIVERSITY, has adopted the following standards of conduct in regards to Private Education Loan Programs:

      • The University does not participate in any revenue-sharing arrangements with any lender.

      • The University does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept any gifts of greater than a nominal value from any lender, guarantor or servicer. 

      • The University does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept any fee, payment or other financial benefit (including a stock purchase option) from a lender or affiliate of a lender as compensation for any type of consulting arrangement or contract to provide services to a lender or on behalf of a lender relating to education loans. 

      • The University does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept any compensation from a lender, guarantor, or group of lenders and/or guarantors in exchange for service on an advisory board, commission or other group established by such a lender and/or guarantor. The University will, however, allow for the reasonable reimbursement of expenses associated with participation in such boards, commissions or groups by lenders, guarantors, or groups of lenders and/or guarantors. 

      • The University does not assign a lender to any first-time borrower through financial aid packaging or any other means. 

      • The University recognizes that a borrower has the right to choose any lender from which to borrow to finance his/her education. The University, then, will not refuse to certify or otherwise deny or delay certification of a loan based on the borrower's selection of a lender and/or guarantor. 

      • The University will not request or accept any offer of funds to be used for private education loans to students from any lender in exchange for providing the lender with a specified number or volume of Private Education Loans.

      • The University will not request or accept any assistance with call center or financial aid office staffing which is provided by a Private Education Loan entity.