MBC Financial Aid: Loans

• Loan Information for Students and Parents
• Mary Baldwin College Gift Policy and Related Lender Policies
• The Perkins Loan
• Stafford Loan
• PLUS Loan
• Disbursement of Proceeds (EFT)
• Entrance/Exit Interviews

Financing education is first a family effort, and we encourage students and parents to talk to each other about financial aid and especially the loans you are taking. Loans are an important part of most aid packages. Therefore, it is important that you understand all the aspects of each loan program. The U.S. Dept. of Education provides on on-line version of the Student Guide which describes all federal aid programs, including loans, in depth.

Loan Information for Students and Parents

NOTE: As Stafford or PLUS Loan borrowers, we encourage students and parents to make an informed decision regarding lender selection. Borrowers are encouraged to learn about lenders' products and services by visiting the lenders' websites and contacting the lending agencies. Mary Baldwin College will certify a Stafford, PLUS, or Alternative Loan with any lender or guarantor the borrower chooses to utilize. Please see Mary Baldwin College’s Lender Policy below for more information.

The following is a list of lenders identified by Mary Baldwin College for their borrower benefits and customer service.  There are many other lenders who provide federal and private student loans.  We will work with any lender that you choose.

Mary Baldwin’s loan processing procedure follows the list of lenders.

Please contact the Financial Aid Office if you have any questions.  We look forward to hearing from you.

Lender List & Process (PDF)

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Mary Baldwin College Gift Policy and Related Lender Policies

Staff members in the Office of Admissions and Financial Aid are prohibited from accepting gifts from any lender of student and parent loans or from any loan guarantee agency.  Gifts include but are not limited to travel, hotel or motel lodging, entertainment, restaurant meals, office supplies and event tickets.  Exceptions include such things as newsletters or reprints of articles and presentations designed to inform college officials about relevant issues.

In order to ensure the fair and consistent selection of lenders for student and parent loans, the following additional policies governing the College’s relationship with lenders will apply:

Mary Baldwin College staff members may not serve on lender advisory boards;

Mary Baldwin College and its employees will not engage in financial arrangements with lenders that result in a financial benefit to the College or its employees, including revenue sharing, referral fees or stock options;

Mary Baldwin College and its employees will not accept gifts, including computers or other equipment, from lenders at no cost or at a rate below market price;

Mary Baldwin College and it employees will not accept printing or publication services from lenders at no cost or at a rate below market price.  Brochures and mailings to borrowers as part of the lender’s normal customer service and marketing activities are exempt from this policy;

The use of Mary Baldwin College’s name, emblem or logo by lenders is prohibited;

Mary Baldwin College will not accept staffing assistance of “call center” services from lenders.  Calls to borrowers as part of the lender’s normal customer service activities are exempt from this policy.
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The Perkins Loan

Because of limited funding, the Perkins Loan is awarded based on the student's need for a Pell Grant. The best of all student loans, the Perkins Loan is not subject to origination fees and bears interest at a fixed, 5% interest rate during repayment. Promissory notes are completed at the time of enrollment at the Business Office. Repayment does not occur until six months after leaving school or graduation. For more in-depth information about repayment of this loan please contact the Business Office.
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The Stafford Loan

The Stafford Loan is awarded by the aid office per federal guidelines. To accept the federal subsidized and/or unsubsidized Stafford loans listed on the student's financial aid award letter, the student must sign and return the award letter to the Financial Aid Office.  For more information about the loan process, see the section titled "Lender List and Process" at "Loan Information for Students and Parents".  The subsidized Stafford Loan interest is paid by the government for your period of enrollment in school and any grace periods after graduation, withdrawal, or less than half-time enrollment. The unsubsidized Stafford loan interest is the responsibility of the student from the time of the disbursement. Capitalization of interest can be chosen to defer payment until after graduation. The maximum Stafford interest rate is 8.25%. Repayment is the responsibility of the student. EFT is the recommended method of disbursement of funds.
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PLUS Loan

The PLUS Loan is a loan for parents of undergraduate, dependent students. Loan eligibility is based on college costs, less other aid, subject to a credit check by the lender. The award letter will only show the amount of the PLUS Loan to direct costs of Mary Baldwin College. A parent can increase the loan amount up to the student's cost of attendance less any other financial aid received. The extra funds can be used to cover loan fees, books or other educational expenses. Contact our office for assistance in determining the amount of loan you may need. Parents begin repayment 60 days after the second disbursement of the loan (usually in March of an academic year). The maximum PLUS interest rate is 9%. Again, the recommended method of disbursement is EFT.
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Disbursement of Stafford and PLUS Loans

All family federal education loans are disbursed in at least two payments (usually by semester) and are subject to as much as a 4% origination fee which is withheld by the lender and guarantee agency at the time of disbursement.

We strongly encourage Electronic Funds Transfer (EFT) of loan proceeds. Once funds are received and enrollment status and continued eligibility verified, funds are transferred directly to the student's account like an automatic deposit without the necessity of paper checks. Funds are received no earlier than the week after add-drop period with the first refund checks issued no earlier than two to three weeks after the add-drop period.

If a student's eligibility has changed because of withdrawal or reduced enrollment, funds will be returned to the lender. Credit balances on a student's account must be refunded within 14 days of the credit balance occurring. If any activity occurs on your student account, such as loan disbursements, you will receive updated billing within 30 days. You have the right to cancel any loan up to 14 days after the receipt of the first billing that reflects the disbursement of that loan.
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Entrance Interview Form

The Entrance Interview Form is completed by first-time student borrowers prior to enrollment and/or disbursement of loan proceeds. A personal interview session is the recommended method. Students may also complete entrance counseling at www.mapping-your-future.org. Federal regulations require an entrance interview to be sure students are aware of the scope and nature of loans.

Exit Interview Form

The Exit Interview Form is required when a student graduates, withdraws from classes or drops below half-time enrollment. The interview stresses the importance of repayment of student loans and the impending date that repayment will begin.
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More Information

For more financial aid tips, loan application status, account balances, learning about deferment options, finding repayment options, and learning about loan consolidations please contact the Financial Aid Office.  Your lender will also have information about these topics.  Many lenders also have repayment calculators available at their websites. You may also contact your lender or another lender of your choice about alternative loans.  The Financial Aid Office recommends that you and your family only consider alternative loans as a last resort. 
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Questions? Contact the Admissions Office.