Overview

Overview

Federal and private loans are need-based financial aid that must be repaid, sometimes with interest. Federal loans include the Direct Loan, Parent PLUS Loan, Perkins Loan and more. Some federal loans don't accrue any interest while you're still a student. Private loans are another option to help you pay for the remainder of your education. 

Direct Loans

Direct Loans

Federal Direct Loans are low interest rate loans that all students can apply for, provided they have filed a FAFSA and meet the criteria to receive federal aid. 

As with all loans, Direct Loans must be repaid with interest. There are two types of student Direct Loans: Subsidized and Unsubsidized. You may receive one or both types depending on your dependency and financial status. To receive the funds, you must be enrolled at least half-time.

 


Subsidized Direct Loan

Unsubsidized Direct Loan
Financial Need Based on need Not based on need

Limits


 

Refer to the Annual and Aggregate Loan Limit tables below.

Federal regulations limit new borrower eligibility for Direct Subsidized Loans to 150% of the published length of an undergraduate program. This limit applies only to first-time borrowers. Visit the Federal Student Aid website for a full explanation.

Refer to the Annual and Aggregate Loan Limit tables below.

Important to note that Subsidized and Unsubsidized Direct Loans combined cannot exceed the Federal Direct Loan annual limits noted below.

Interest

The interest rate is a variable fixed rate which is determined at the beginning of each academic year (July 1). For more information, please visit studentaid.gov.

Note, Federal government pays the interest while in school at least half-time and during the six-month grace period after you graduate, leave school, or drop below half-time enrollment.

Elimination of the Grace Period Interest Subsidy – Currently, the federal government pays the interest on a Federal Direct Subsidized loan not only when the student is enrolled at least ½ time but also during their 6 month grace period. Effective 7/1/12, the federal government will temporarily eliminate the interest subsidy during the 6 month grace period for loans made between 7/1/12 and 6/30/2014.

The interest rate is a variable fixed rate which is determined at the beginning of each academic year (July 1). For more information, please visit studentaid.gov.

You are responsible for paying all the interest while in school and after graduating or dropping below half-time enrollment. You can allow the interest to accumulate while you are in school and during the grace period. If you do, the interest will be capitalized immediately at the time of repayment. The capitalized interest will be added to the principal balance. It is to your advantage to pay the interest while in college; you will pay less in the long run.

Fees Fees are determined by the date of the first disbursement of the loan. For more information, please visit studentaid.gov. Fees are determined by the date of the first disbursement of the loan. For more information, please visit studentaid.gov.
Apply for Loan and Entrance Counseling

After being awarded an Subsidized Direct Loan, go to studentloans.gov to complete a Master Promissory Note (MPN) and your Entrance Counseling.

If you are a continuing student borrower at PLNU, go to your student portal to accept your loans (an MPN and entrance counseling is only required for new borrowers).

After being awarded an Unsubsidized Direct Loan, go to studentloans.gov to complete a Master Promissory Note (MPN) and your Entrance Counseling.

If you are a continuing student borrower at PLNU, go to your student portal to accept your loans (an MPN and entrance counseling is only required for new borrowers).

Repayment

Repayment begins six months after you graduate, withdrawn, or cease to be enrolled at least half-time.  

The loan repayment period is typically 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. Visit the Federal Student Aid website for more information about repayment.

If you would like to calculate your repayment of loans, try using the repayment calculator on the Federal Student Aid website.

Repayment begins six months after you graduate, withdrawn, or cease to be enrolled at least half-time.

The loan repayment period is typically 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. Visit the Federal Student Aid website for more information about repayment.

If you would like to calculate your repayment of loans, try using the repayment calculator on the Federal Student Aid website.

Exit Counseling

Every student borrower who has withdrawn or graduated from PLNU is required to complete All students who graduate at the end of a term will be notified of in-person Exit Counseling sessions.  For withdrawn students, Exit Counseling can be completed here: studentloans.gov. Every student borrower who has withdrawn or graduated from PLNU is required to complete All students who graduate at the end of a term will be notified of in-person Exit Counseling sessions.  For withdrawn students, Exit Counseling can be completed here: studentloans.gov.


Please Note:

  • Additional Unsubsidized Direct loans: If your parent is denied a Parent PLUS loan, you are eligible to apply for an additional unsubsidized loan. The limits are listed below. Please contact SFS to see if you are eligible to apply.
  • You are not required to borrow the full amount for which you are eligible; borrow conservatively to minimize indebtedness. 
  • Once awarded a federal loan, students still needs to apply for or claim their loan in order for it to be credited to their student account.

Annual Loan Limits

The following table shows the maximum amounts you can borrow each year for the Unsubsidized and Subsidized Direct Loans.

Dependent Undergraduates Base Amount (DSSL//DUSL) Additional Unsubsidized Loan Amounts
1st Year $3,500 $2,000
2nd Year $4,500 $2,000
3rd Year/4th Year $5,500 $2,000

 

Independent Undergraduates Base Amount (DSSL//DUSL) Additional Unsubsidized Loan Amounts
1st Year $3,500 $6,000
2nd Year $4,500 $6,000
3rd Year/4th Year $5,500 $7,000

Aggregate Loan Limits

The following table shows the maximum lifetime totals that you can borrow for both the Direct Subsidized and Unsubsidized loans: 

Dependent Undergraduates*

 
Direct Subsidized Loans/Direct Unsubsidized Loan (DSSL/DUSL) $31,000
Total $31,000

*Includes Teacher Credential students 

Independent Undergraduates** 

 
Direct Subsidized Loans (DSSL) $23,000
Direct Unsubsidized Loan (DUSL) $34,500
Total $57,500

**Includes Dependent Undergraduate students whose parents are denied the PLUS loan

Parent PLUS Loans

Parent Plus Loans

The Federal PLUS Loan is a credit-based loan for parents (or step-parents) of dependent undergraduate students. A FAFSA is now required to apply for a PLUS loan.

Read more about how to apply for the FAFSA.

  • Loan Limits: Cost of Attendance minus any other financial aid received.
  • Fees: For information concerning the origination fees for the PLUS loan, please visit studentaid.gov.
  • Interest: For information concerning the interest rate for the PLUS loan, please visit studentaid.gov.
  • Repayment: Repayment begins 60 days after the loan is fully disbursed. Deferments may be available. The loan repayment period is 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. The loan cannot be transferred into the student’s name. Please visit the Federal Student Aid website for more information about repayment.

It may be to the parent's advantage to apply for the loan amount needed for a full academic year. For example, if a parent applies for a fall only PLUS loan, it is considered fully disbursed in the fall and repayment must begin within 60 days. 

Please contact us about how much PLUS Loan is actually needed to cover your student’s institutional charges, as we do not advise you to borrow more than what you actually need.

Perkins Loan

Perkins Loan

A Federal Perkins Loan is a low-interest loan for students with exceptional financial need and who meet the Student Financial Aid Office’s Priority Packaging Deadline. The program is campus-based meaning that Point Loma awards the loan and takes care of repayment. This loan program is currently available only to returning undergraduates.  

Funds are limited and not all qualified applicants will receive a Perkins loan. If you are awarded a Perkins Loan, it will appear on your award letter. Because of the limited availability of funds, there is no guarantee that you will continue to receive Perkins Loan funding in subsequent years. 

Please contact us to determine if you are eligible to apply.

Perkins Loan Details

  • Loan Amounts: Varies
  • Interest: Fixed at 5%. Interest does not start accruing until nine months after the student graduates or the student's enrolled unit level drops below half-time status.
  • Repayment: Nine months after the student graduates or the student's enrolled unit level drops below half-time status. When a student goes into repayment, he will have up to 10 years to repay the loan. Perkins Loans are considered federal funds and therefore are subject to similar repayment guidelines as other federal loans. Non-repayment of a Perkins Loan must be reported by PLNU to the federal government and will affect your credit score. PLNU is the lender for this loan, so repayment will be to the university or its servicer ECSI.

Entrance and Exit Counseling 

Entrance Counseling is required before Perkins funds can be disbursed to your student account. Exit Counseling is required when you have graduated, withdrawn, or enrolled for less than half time. The purpose of loan counseling is to advise you of your rights and responsibilities for borrowing a Perkins Loan, deferment and forbearance options, and repayment options. Entrance counseling is completed at the time you sign the Perkins MPN at ecsi.net. For Exit Counseling, you will receive an email from PLNU at the time of graduation, withdrawal, or enrolled for less than time, directing you online.

Federal Nursing Student Loan

Federal Nursing Student Loan

The Federal Nursing Loan is a federally subsidized, low-interest rate loan for students accepted and enrolled in the PLNU Nursing program who demonstrate exceptional financial need. Pre-Nursing students are not eligible.

Federal Nursing Student Loan Details

  • Loan Amounts: Varies. Determined by PLNU based on available funding.  
  • Interest: Fixed at 5% and begins accruing nine months after graduation, withdrawal or dropping to less than half-time status.
  • Repayment: Begins nine months after graduation, withdrawal, or dropping less than half-time. 

If you are awarded a nursing loan, you must sign a promissory note at the beginning of each semester before funds can be applied to your account.

Entrance and Exit Counseling

Entrance Counseling is required before Perkins' funds can be disbursed to your student account. Exit Counseling is required when you have graduated, withdrawn, or enrolled for less than half time. The purpose of loan counseling is to advise you of your rights and responsibilities for borrowing a Nursing Loan, deferment and forbearance options, and repayment options. Entrance counseling is completed at the time you sign the Nursing Loan Promissory Note at ecsi.net. For Exit Counseling, you will receive an email from PLNU at the time of graduation, withdrawal, or enrolled for less than time, directing you online.

Please contact us to determine if you are eligible to apply.

Note: funds are limited; not all students who meet the qualifications for a Nursing Loan will receive the Loan. PLNU is the lender for this loan, so repayment will be to the university or its servicer ECSI. 

Caution: Federal Nursing Loans are considered Federal funds and therefore are subject to similar repayment guidelines as other federal loans. Non-repayment of a Federal Nursing Loan must be reported by PLNU to the federal government and will affect your credit score.

Private Loans

Private Loans

A private loan is a loan of last resort. A student should apply for a private loan after all federal loan options have been exhausted including the Parent PLUS loan. It is advisable only if you have no further eligibility for other loan programs and you need more funding. This type of loan is based on your credit. Please be cautious and borrow only what you need for the academic year.
 

View Our Private Loan Lender List
Although we provide a Private Lender List, you can choose any lender that you wish to apply with.


As a faith-based university, we are committed to serving students and parents of Point Loma Nazarene University in a way that brings honor to God and by following business practices that are above reproach. Each lender listed on our current Private Loan Lender List has recently completed an intensive Request for Information (RFI) process. They were selected by a panel of PLNU representatives and scored on the basis of the following:

  • Customer Service
  • Borrower Benefits
  • Technology and Safety of Information
  • Value Added Services

As stated above, borrowers may select any lending institution, including those not listed. The lender list is provided so that our students and parents are aware of which providers have completed the screening process. We do not accept revenue-sharing, compensation agreements, gifts, or trips from any lending institution. Any services provided must have a direct benefit or interest to our students.

Private loans are offered by various lenders who set their own criteria on credit and interest rates.  In most cases the interest rates may be higher than the Federal Direct Loan and PLUS.  To improve your chances of approval and possibly lower your interest rate, you may want to apply with a co-signer. Interest rates are based on PRIME or LIBOR plus a percentage tier that may range from 0% to 12% depending on the borrower’s credit and, if required, co-signer’s credit. Students should research different lenders since the criteria on a Private Loan can vary from lender to lender.

Notes

  • If there are any questions regarding the lender's website or process, please contact the lender.
  • To ensure fully informed borrowing, you should refer directly to each lender's loan application and promissory note for exact information regarding terms, assumptions, conditions, eligibility, definitions, and Annual Percentage Rate (APR) or contact your lender.
  • Most lenders use the Prime Rate or LIBOR: The current Prime Rate is 3.25% and LIBOR ranges from 0.54% is 1.10% (depending on LIBOR period) effective February 2, 2012. Rates change monthly.
  • If possible, please apply with one lender only. Applying with multiple lenders may affect your credit.