Office of Financial Aid
College of Arts & Sciences
Educational Loans
Most students borrow to pay a portion of their school bill. Loans must be repaid; therefore, students are encouraged to borrow only what they need and only what they can afford to repay. Refer to your Financial Aid Award Letter to see what loans you are eligible to borrow.
Federal Stafford Loan
(See the Stafford Loan webpage for more information and application instructions.)
Eligibility: The federal government pays the interest for students demonstrating financial need (Subsidized Federal Stafford Loan) 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 (the government does not pay the interest). Student must be enrolled at least half time.
Features: Stafford Loans disbursed after July 1, 2006 have a fixed interest rate for the life of the loan. The interest rate for undergraduate students for loans disbursed from
July 1, 2009 to June 30, 2010 is 5.6% for subsidized and 6.8% for
unsubsidized Stafford loans. Beginning with the 2009-2010 academic year, Bethel University will participate in the Federal Direct Loan Program in which students will get their Direct Stafford Loans directly through the U.S. Department of Education, rather than through private lenders.
Federal Perkins Loan
(See the Perkins Loan webpage for more information and application instructions.)
Amount: Bethel awards eligible freshmen up to $2,000 and sophomores up to $1,000.
Eligibility: Must demonstrate financial need. Due to limited Perkins Loan funds, Bethel gives priority to freshmen and sophomores who meet the April 15 financial aid application deadline.
Features: Federal government pays the interest until repayment begins nine months after student graduates, withdraws, or drops below half time. Five percent interest with up to 10 years for repayment.
Federal PLUS Loan
(Parent Loan for Undergraduate Students)
(See the PLUS Loan webpage for more information and application instructions.)
Amount: Cost of attendance minus other aid.
Eligibility: Parent of dependent student(s). Student must be enrolled at least half time.
Features: Beginning with the 2009-2010 academic year, Bethel University will
participate in the Federal Direct Loan Program in which parents will
get their Direct PLUS Loans directly through the U.S. Department of
Education, rather than through private lenders. Direct PLUS loans have a 7.9% fixed interest rate. Repayment of principal and interest begins 60 days after loan is fully disbursed (approximately April 1).
Private Student Loans
(See the Private Loan webpage for more information, Bethel's list of preferred lenders, and application instructions.)
Amount: Cost of attendance minus other aid.
Features: Variable interest rates. Repayment generally begins after student graduates. Student responsible for interest while enrolled. Fees and interest rates vary depending on lenders and credit check. Co-signer required by some lenders.
Supplemental Education Loan Fund (SELF)
(See the SELF Loan webpage for more information and the application procedure.)
Amount limits: The minimum loan amount is $500. Undergraduates may borrow up to $7,500 each year. In addition, students may not borrow beyond the sum of their annual loan limits.
Eligibility: The SELF Loan is available to students enrolled at least half time, pursuing a degree or certificate. Students must have a credit-worthy co-signer.
Features: Students are required to make quarterly interest payments on their SELF loan while enrolled. The interest rate is variable, adjusted quarterly. SELF Loans are provided through the Minnesota Office of Higher Education.