Saturday, September 14, 2013

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Student loans



Financial aid at MIAD is about a sound investment that begins with your first year and continues for a lifetime of personal and professional success. So the loans you may take out, whether federal or private, are an investment in your future.


At MIAD, we work individually with every student to help ensure that you and your parents maximize all your options for funding your MIAD education. We're also here to ensure that you are fully aware of your responsibilities as a student loan borrower, which means that the quality of your life is important to us both when you are a student, and when you graduate.



The Federal Direct Loan Program is the main source of loans used by MIAD students. It consists of three types of loans.


Federal Direct Subsidized Loan

Federal Direct Subsidized Loan eligibility is based on financial need. Being subsidized means that you, the student, pay no interest on the loan as long as you are enrolled at least half time.



  • First-year students are eligible for $3,500 annually.

  • Sophomores are eligible for $4,500 annually.

  • Juniors and seniors are eligible for $5,500 annually.

  • There is an estimated 1% origination fee for the loan, so the fee for a $3,500 loan for a first-year student would be $35.

  • Repayment begins six months after graduation with an estimated maximum interest rate of 6.8%.

Federal Direct Unsubsidized Loan

Eligibility for a Federal Direct Unsubsidized Loan is not based on financial need or family income. Unsubsidized means interest accrues on the loan while you are enrolled.



  • The estimated maximum interest rate is 6.8% for 2013-2014, with an estimated loan origination fee of 1%.

  • We encourage you to pay the interest while you are enrolled.

  • Repayment also begins six months after graduation or six months after you are no longer attending the college at least half time.

How do I apply for Federal Direct Subsidized and Unsubsidized Loans? The loan application process require the following steps:


1. Apply for admission to MIAD!


2. All students: File the Free Application for Federal Student Aid ( FAFSA).


3. Use MIAD's FAFSA school code 014203 so that we receive the results and can process your financial aid award letter.


4. First-time borrowers in the Federal Direct Student Loan program must complete a Master Promissory Note (MPN) and an Entrance Counseling Session, which helps you understand your rights and responsibilities as a student loan borrower. Both the Master Promissory Note and the Entrance Counseling Session can be completed online at www.studentloans.gov. You will need your 4-digit PIN#, the same one you use for the online FAFSA. You can read more about this in Let's Get Started.


Federal Direct Plus (Parent) Loan

Federal Direct Plus Loans are federally guaranteed loans that allow parents to assist in the coverage of educational expenses for dependent students. They are not based on need or family income, but require a credit check. Unlike other loans, parents must apply directly for these loans.



  • The amount a parent can apply for each year is the cost of attending MIAD minus all other aid awarded.

  • The estimated interest rate is fixed at 7.9%, with an estimated 4% origination fee. For example, if a parent is accepted for a Plus Loan of $10,000, the origination fee is $400, and MIAD receives $9,600 to apply to the student's account.

  • Repayment begins 60 days after graduation or six months after your student is no longer attending the college at least half time.


How Does a Parent Apply for a Direct Plus Loan?

1. Parents can apply for a Direct Plus (Parent) Loan at www.studentloans.gov.


2. You'll be asked to complete the Federal Direct Plus Loan Request and a Federal Direct Loan Master Promissory Note.


Private Alternative Loans

3. Contact the Financial Aid Office if you have any questions. We're here to help you and your student.


MIAD partners with private lenders to provide students additional loan options that should be considered after all possibilities for scholarships, grants and employment have been researched. These lenders have been selected based on positive past student and institutional experience. You can borrow what it costs to attend MIAD minus any other financial aid you are receiving.


Alternative loans can be a good choice for students who have a good credit-worthy co-signer. In some cases, they may be a better option than a Parent Plus loan. Some lenders do not have origination fees and offer both fixed and variable interest rates.


Financial Aid staff must approve the amount you borrow. We'll also help you determine the amount of an alternative loan. So contact us for further information. After that you can apply for the loan through FASTALT.


Source: Miad

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