Loans
Loans are a viable option to help cover your college expenses, but it is important to remember that they must be repaid. You may want to consider both federal and private loans.
Federal Loans
The federal government offer loans which are available for both students and parents of dependent students. To apply for federal loans, you must complete the Free Application for Federal Student Aid (FAFSA). Be aware that there are limits on the amount of federal loans you can borrow.
Federal Direct Student Loans
To be eligible for student loans, you must first complete the Free Application for Federal Student Aid (FAFSA). After completing the FAFSA and turning in all the necessary documents, you will receive an award notification stating the Federal Direct Student Loan type and amount you are eligible for.
Initial financial aid awards are based on full-time enrollment. If you are not enrolled full-time at the end of drop/add, your award will be adjusted. If you are enrolled less than half-time, your student loans will be canceled.
Student borrowers are limited in the amount of Federal Direct Student Loans they can receive, and are permanently limited to 150% of the length of their academic program.
Dependent Students
First Year – $5,500 – No more than $3,500 of this amount may be in subsidized loans.
Second Year– $6,500 – No more than $4,500 of this amount may be in subsidized loans.
Third and beyond – $7,500 – No more than $5,500 of this amount may be in subsidized loans.
Independent Students
First Year – $9,500 – No more than $3,500 of this amount may be in subsidized loans.
Second Year – $10,500 – No more than $4,500 of this amount may be in subsidized loans.
Third and beyond – $12,500 – No more than $5,500 of this amount may be in subsidized loans.
Loan Entrance Counseling and a Master Promissory Note
If you are a new borrower and have not yet completed loan entrance counseling, please complete the loan entrance counseling online as well as the Master Promissory Note.
Federal Direct Parent PLUS Loans
Federal Direct Parent PLUS Loan are for a parent of a dependent student. These loans are in the parents’ name to help pay for educational expenses up to the cost of attendance, after all other financial aid.
To apply for a Federal Direct Parent PLUS Loan, you must complete a PLUS application as well as a Master Promissory Note.
Private Alternative Loans
Financial institutions offer private alternative loans, but they may be more expensive than federal loans. To obtain a private alternative loan, you must apply directly with the lender.
Private Alternative Student Loans
Private student loans, also called alternative loans, are a resource for students who have exhausted all other forms of financial aid.
Students consider alternative loans for several reasons: the student has borrowed the maximum federal direct loan amount for the award year, enrolled for less than six credit hours, a parent does not wish to borrow from the Federal Direct Parent PLUS Loan program, and/or the need for additional funds.
Manhattan Christian College uses a third-party service, Great Lakes FASTChoice, to assist student in searching for private student loan lenders.
IMPORTANT: Manhattan Christian College doe not endorse any specific alternative loan lender. And we advise while considering this method of borrowing that you read and understand all loan regulations, fees, interest rates, benefits, and financial options prior to applying for any private student loan.
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