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Loans

Loans are funds that are borrowed to help pay for educational expenses. Loans must be repaid, usually with interest. Due to limited funding, the Federal Perkins Loan may not be available. You must be a degree-seeking student or in an initial Teacher Certification program and enrolled in six or more credit hours at the time of disbursement to receive a student loan.

Federal Direct Loans
Governors State University participates in the Federal Direct Loan Program through the U.S. Department of Education. If this is your first Federal Direct Subsidized or Unsubsidized Loan at Governors State University, or you have an expired promissory note, you are required to sign an electronic Master Promissory Note (MPN) and complete Entrance Counseling online at www.studentloans.gov. This MPN and Entrance Counseling will be in effect throughout your time at GSU.

• Federal Direct Subsidized Loan
  The federal government pays the interest on this need-based loan as long as you remain in school at least half-time (six credit hours). This loan is only available to undergraduate students. Loan repayment begins six months after you graduate or drop below six credit hours. The interest rate is currently 3.4 percent. A 1.0 percent origination fee is deducted from each disbursement. More information about Federal Direct Subsidized Loans can be found on the Federal Student Aid website.
  
  
• Federal Direct Unsubsidized Loan
  The interest on this non-need based loan accrues from the time the loan is disbursed until paid in full. You may pay the interest while you are in school or it will be added to the principal balance of the loan when you enter repayment. Loan repayment begins six months after you graduate or drop below six credit hours. The interest rate is currently 6.8 percent for all students. A 1.0 percent origination fee is deducted from each disbursement. More information about Federal Direct unsubsidized Loans can be found on the Federal Student Aid website.
  
  
• Federal Direct PLUS Loan
  Graduate/Doctoral students or parent/s of a dependent student can apply for this federal loan. A credit check is required and loan amount can't exceed student's budget or cost of attendance minus all financial aid and other resources received by the student. Repayment begins 60 days after loan disbursement. The interest rate is fixed at 7.9 percent. A net 2.5 percent (4 percent origination fee with a 1.5 percent rebate) origination fee is deducted from each disbursement. Student must complete a Master Promissory Note online at www.studentloans.gov and turn in a Federal Direct PLUS Loan Request to the Financial Aid Office. More information about Federal Direct PLUS Loans can be found on the Federal Student Aid website.

Federal Perkins Loan
This loan is awarded to students who show exceptional financial need. It is funded by GSU. You must attend a pre-loan interview each semester you are offered this loan. The pre-loan interview can be scheduled with Dale Hobbs, 708.235.7403, in the Financial Services Office. The interest rate is five percent, which is paid by the federal government while you remain enrolled at least half time. Loan repayment and interest charges begin nine months after you graduate or drop below six credit hours. More information on the Perkins loan can be found on the Federal Student Aid website.

Private Student Loans
Governors State University students may also want to take out additional student loans through private lenders. The Office of Financial Aid highly encourages students to speak with a financial aid counselor and use all federal student aid available before seeking out any alternative or private loans. Because alternative loans are funded and administered by private lenders, each has its own unique terms and conditions. Students should carefully review the terms and conditions of each lender.

The Governors State University Office of Financial Aid is unable to provide guidance as to which alternative loan best meets your needs. This list is provided by finaid.org and they are responsible for the accuracy and updating of all content.