College of Adult & Professional Studies

Educational Loans

Most students borrow to pay a portion of their school bill. When choosing a loan, students should begin with the Federal Stafford Loan and then if additional funds are needed, other educational loans. Loans must be repaid; therefore, students are encouraged to borrow only what they need, and only what they can afford to repay.

Federal Stafford Loan

(See the Stafford Loan webpage for more information, Bethel's list of preferred lenders, and the application procedure.)

Eligibility: Students who demonstrate financial need are eligible for a Subsidized Federal Stafford Loan for which the federal government pays the interest until students enter repayment (six months after graduation or dropping below half time). Students who do not qualify for the interest subsidy may borrow an Unsubsidized Federal Stafford Loan for which the government does not pay the interest (i.e., the borrower is responsible for the interest while in school and through the grace period). Students must be enrolled at least half time.

2008-2009 Maximum Annual Loan Limits:

Dependent
Student

Independent
Student

1st Year

$5,500 - No more than $3,500 of this amount may be subsidized

$9,500 - No more than $3,500 of this amount may be subsidized

2nd Year

$6,500 - No more than $4,500 of this amount may be subsidized

$10,500 - No more than $4,500 of this amount may be subsidized

3rd and 4th Years (each)

$7,500 - No more than $5,500 of this amount may be subsidized

$12,500 - No more than $5,500 of this amount may be subsidized

Maximum Total Stafford Loan Debt When You Graduate

$31,000 - No more than $23,000 of this amount may be in subsidized loans

$57,500 - No more than $23,000 of this amount may be in subsidized loans

Features: Stafford Loans disbursed after July 1, 2006, have a fixed interest rate for the life of the loan. The interest rate for both subsidized and unsubsidized Stafford loans disbursed from July 1, 2007 to June 30, 2008 is 6.8%. The interest rate for undergraduate students for loans disbursed from July 1, 2008 to June 30, 2009 is 6.0% for subsidized and 6.8% for unsubsidized Stafford loans. Stafford Loans are made through a bank, savings and loan, or credit union.

Federal PLUS Loan

(Parent Loan for Undergraduate Students)

(See the PLUS Loan webpage for more information, Bethel's list of preferred lenders, and the application procedure.)

Amount: Cost of attendance minus other aid.
Eligibility: Parent of dependent students. Students must be enrolled at least half time.
Features: PLUS (Parent) loans have a 8.5% fixed interest rate. Repayment of principal and interest begins immediately.

Private Student Loans

(See the Private Loan webpage for more information, Bethel's list of preferred lenders, and the application procedure.)

Amount: Cost of attendance minus other aid.
Features: Variable interest rates. Repayment generally begins after students graduate. Students responsible for interest while enrolled. Fees and interest rates vary depending on lenders and credit check. Co-signer required by some lenders.

Choosing a Lender

To assist students in selecting a lender, the financial aid office conducts an annual evaluation of potential lenders. All preferred lenders must satisfy the following expectations:

Provide cost-saving benefits for borrowers. Examples may include payment or rebate of loan fees, rebates of principal, and interest rate reductions.
Demonstrate a commitment to helping borrowers avoid going into default (e.g., proactively contacting borrowers who are late on payments, providing resources that help borrowers manage their money and avoid borrowing too much).
The lender representatives are actively involved in the Minnesota Association of Financial Aid Administrators. This provides a clear indication of the lender's commitment to advance higher education in Minnesota, and to cultivate productive, healthy relationships with Minnesota's financial aid administrators.
Does not sell or share borrower information without the prior consent of the borrower.
Demonstrate the commitment and ability to provide educational loans for the long term.
Clearly communicate the terms and conditions of their educational loans.
Provide high levels of customer service, including, but not limited to, online loan applications, access to loan status online, disbursement of loan funds via electronic funds transfer, online loan information tailored specifically for Bethel borrowers, and prompt response to any loan processing issues identified by our borrowers or our staff.

In addition, we have a strong preference for working with lenders that are familiar to our borrowers (name recognition), partner with guarantee agencies located in Minnesota, service all their educational loan products at one location, provide full-service banking options, and are recommended by our students.

Students are free to select any lender for their educational loans. However, after a thorough review of lender data, we encourage borrowers to strongly consider one of the following lenders to ensure that they receive the highest level of customer service, avoid delays in processing loans, and have access to the best borrower benefits available to Bethel students.

2008-2009 Preferred Lenders

Citibank	800.967.2400	www.bethel.edu/finaid/citibank
U.S. Bank	800.242.1200	www.bethel.edu/finaid/usbank
Wachovia Education Finance	800.338.2243	www.bethel.edu/finaid/wachovia
Wells Fargo	800.658.3567	www.bethel.edu/finaid/wellsfargo