Loans
Explore the different types of loans available. Student loans from the federal government and other sources can help you finance your Elmhurst University education.
Students meeting all eligibility requirements and completing a FAFSA may be offered loans from the Federal Direct Loan program. Some students may also borrow from private lenders, but students are encouraged to utilize any federal loan eligibility prior to pursuing alternatives.
Types of Loans
Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education.
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Subsidized loans are based on financial need as established by the FAFSA. Interest and principal payments are deferred until six months after you graduate or drop below half-time enrollment.
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Unsubsidized loans are not based on financial need. Principal payments are deferred until six months after you leave school, but interest continues to accrue.
There are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). These limits vary depending on what year you are in school and whether you are a dependent or independent student.
If it is your first time receiving a Direct Loan, you will be required to complete entrance counseling, a tool to ensure you understand your obligation to repay the loan, and sign a loan contract called a Master Promissory Note (MPN), agreeing to the terms of the loan.
Visit studentaid.gov to learn more about federal loans including interest rates, limits, and other important information.
The U.S. Department of Education makes Direct PLUS Loans to eligible parents and graduate or professional students. A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent, and as a grad PLUS loan when made to a graduate or professional student.
A credit check will be conducted. If the borrower has an adverse credit history, they may still be able to receive a PLUS loan if they meet additional requirements. The maximum PLUS loan amount is the cost of attendance minus any other financial aid received.
If eligible for a parent PLUS loan, the parent will be required to sign a Direct PLUS Loan Master Promissory Note (MPN). If eligible for a graduate PLUS loan, the student will be required to sign a Direct PLUS Loan Master Promissory Note (MPN). Graduate students that haven’t previously received a PLUS loan will also be required to complete entrance counseling.
Visit studentaid.gov to learn more about PLUS loans including interest rates and other important information.
If you need additional funding beyond your eligibility for scholarships and/or federal loans, you might consider taking out an alternative loan. Alternative loans, sometimes called private loans, are credit-based nonfederal loans made by a lender such as a bank or a credit union. These loans often have less favorable terms than federal student loans so students are encouraged to utilize any federal loan eligibility prior to applying for an alternative loan.
If you are choosing an alternative loan, you should compare the terms offered by different programs in order to choose the best fit for your situation. You can learn about and compare loan terms from multiple lenders using the ELMSelect Tool, which provides information for the loan programs most frequently used by Elmhurst University students.
Please note that you are not limited to lenders listed in the ELMSelect tool; you can borrow from any lender of your choosing. When deciding on an alternative loan, please consider the following: interest rates, fees, repayment options, monthly payments, and deferments. Please contact SFS for assistance with this process.
Student Responsibilities for Loans
After you receive your financial aid offer, log in to the myElmhurst Portal and click on the Self Service icon to accept or decline your Federal loans. If you wish to reduce or cancel an accepted loan, please complete a Student Loan Adjustment Form via the student portal. You can navigate to this form via the student portal by clicking on “Etrieve Forms”, selecting “Forms”, and selecting the Loan Adjustment Form in the Student Financial Services section.
Master Promissory Note
The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). Your MPN is valid for up to 10 years, and you may receive more than one loan with each MPN. A completed MPN is a requirement for disbursement of your loan.
Entrance Counseling
Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You’ll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
A completed Entrance Counseling is a requirement for disbursement of your loan.
Complete Your Entrance Counseling
Exit Counseling
You must complete exit counseling when you leave school or drop below half-time enrollment. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment.
Annual Student Loan Acknowledgement (ASLA)
The Department of Education recommends students complete an Annual Student Loan Acknowledgement each year they accept a new federal student loan. If this is your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan.
If you have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you are eligible to borrow.
Student Loan Repayment
Direct Loan repayment begins six months after graduation or six months after your enrollment falls below half time. You will be able to choose from several repayment plans, and you will make your payments to your direct loan servicer.
For details, see How to Repay Your Loans on the federal government’s website.