Student Loans

Student loans, through federal or private sources, are repaid and  may be obtained based on need or merit consideration.  All federal student loans require a Free Application for Federal Student Aid (FAFSA) to be filed.

Federal Perkins Loan
A low-interest loan (5%) administered by Loras College to students demonstrating financial need. Students may borrow up to $5,500 per year of undergraduate study with repayment beginning nine months after graduation. Awards are dependent on federal funding levels and require completion of the FAFSA.

Federal Direct Subsidized Loan
This loan allows students to borrow from the federal government at a low interest rate (varies annually) with repayment beginning in one of the following situations:
  • six months after graduation
  • withdrawal from the institution
  • if enrollment drops below half-time status
The loan is need-based and is interest free to students while in school. Annual limits of $3,500 for a first-year student, $4,500 for a sophomore, and $5,500 for a junior or senior are imposed. Independent and graduate students have higher annual loan limits; all loans have an aggregate limit and require completion of the FAFSA. Students are not required to borrow a Federal Direct  Loan.

Federal Direct Unsubsidized Loan
This loan follows the same guidelines as the Subsidized Direct  Loan, except that it is not based on financial need, and the student is responsible for the interest while in school. A student's financial aid may include either loan type or a combination of both. Completion of the FAFSA is required.

Note:  Direct Loan Entrance Counseling
The federal government requires that students complete a student loan entrance counseling session prior to obtaining a Federal Direct  Loan. To complete the counseling, visit the Federal Direct Loan website. The session prepares students for proper management of their student loan with true/false questions. The Office of Financial Planning receives confirmation that it has been completed.

Parent PLUS loans
Parent PLUS loans are available to parents of dependent students to help pay for education expenses. If you are interested in borrowing a Parent PLUS loan, visit the Federal Direct Loan website.

Private Loans
Private education loan programs are available to families to help fill the gap in paying for college. These loan programs can be used to pay any post-secondary education-related expenses, including tuition and fees, food and housing, books and transportation.

Please note that these loans should not be your primary funding source – exhaust all your other options including Loras College’s no-interest payment plan, savings, summer work, work study and outside scholarships before you borrow any type of private education loan. Loras College will not certify a private education loan on your behalf until you have exhausted your federal and state aid options.

Always consider your lowest-cost options first, including grants, scholarships, and federal student loans. Loras College will award you the federal direct loan and grant assistance that you are eligible to receive.

Federal law mandates that we disclose the maximum amounts of federal grant and loan assistance available to you. Maximum eligibility for federal financial aid is based on the results of the FAFSA and is outlined in each student’s award letter. The maximum available grants and loans are listed below:

Federal Pell Grant $5,775
Federal SEOG Grant $4,000 (Maximum award at Loras College is typically $500)
Federal TEACH Grant $4,000
Federal Perkins Loan $5,500 (Maximum loan at Loras College is typically $2,500)
Federal Direct  Loan $5,500 Freshmen, $6,500 Sophomores, $7,500 Juniors/Seniors, $20,500 Graduate Students. Independent students can receive an additional $4,000 as Freshmen and Sophomores, and $5,000 as Juniors and Seniors.
Federal Parent PLUS Loan A parent may borrow up to the cost of attendance minus other aid received.

Loras College uses FASTChoice, a loan comparison tool offered by Great Lakes Higher Education Corporation which lists private loan lenders and allows students to do a side-by-side comparison of up to three different loans.

Some Questions to Consider Before Selecting a Private Loan

If you have any additional questions regarding private education loans, please contact the Office of Financial Planning at or 563-588-7136.
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