Loans

Trine University participates in the Federal Direct Stafford Loan program. The lender for this is the U.S. Treasury Department through the Department of Education. There are two types of Stafford Loans through the Federal Direct Loan program: subsidized and unsubsidized. Below is information regarding terms and application instructions for each program.

• Need-based loan with interest paid by the federal government during enrollment period
• Interest rate fixed at 6.8% for 2012-13
• Annual maximum amounts based on eligibility: $3,500 for freshman, $4,500 for sophomores, $5,500 for juniors and seniors
• Origination fee of 1.0%
• Repayment begins six months after the student graduates or is enrolled less than half time, with ten years to repay. Note: Subsidy is not in effect during the 6 month grace period.

• Non-need-based loan with interest paid by the borrower on a monthly basis during the enrollment period or deferred and added to the principal amount when repayment of the principal begins
• Interest rate fixed at 6.8%
• Annual maximum amounts including subsidized and unsubsidized loans, and based on eligibility: $5,500 for freshman, $6,500 for sophomores, $7,500 for juniors and seniors
• Origination fee of 1.0%
• Repayment of the interest may begin upon disbursement of funds and while in-school , or it can be deferred and added to the principal amount when repayment of the principal begins six months after the student graduates or is enrolled less than half time, with 10 years to repay

• Complete the FAFSA (Free Application for Federal Student Aid), online at www.fafsa.gov .
• Provide any documents requested by our office, and accept your federal student loans online (https://mytrinefa.trine.edu ).This gives us permission to transmit your information to the Department of Education.
• All students will need to complete an “Entrance Counseling” Session. We are requiring all borrowers to complete this short session (which is available online) to review your rights and responsibilities under the federal loan programs. You must complete Entrance Counseling even if you have previously borrowed federal loans at another school and are transferring to Trine University.
• ALL students will have to complete a new Master Promissory Note for the Direct Loan program before the Department of Education will electronically disburse your funds to Trine University.

Trine University participates in the Federal Direct PLUS program and the lender is the U.S. Treasury through the Department of Education. Parents can borrow up to the full cost of education, less any other financial aid (see MyTrineFA). Many parents choose to borrow just a portion of the cost to supplement contributions from other family resources, such as income and savings. Eligibility requirements for this loan mandate that the student and parent borrower must be either citizens or permanent residents of the United States.

Federal Direct PLUS Terms

• Approval for this loan is based on a credit check
• Parents may borrow up to the full cost of education, less any other financial aid, including other educational borrowing and federal work-study
• Interest rate fixed at 7.9%
• Interest accrues after the first disbursement, but the first payment is not due until approximately 60 days after the final disbursement
• There is a 4% origination fee
• Repayment of the interest and principal of the Federal Direct PLUS begins 60 days following the final disbursement of the year
• Parents are able to make interest-only payments and defer repayment of the principal of their PLUS while the student continues to be enrolled at least half-time. To request an "in-school deferment" from the Department of Education, parents may contact the Department of Education at 800-848-0979 or may complete and submit the appropriate deferment form to the Department of Education.
• If parents begin repayment 60 days following the final disbursement for the academic year and if they temporarily cannot meet the repayment schedule, they can request forbearance and postpone or reduce the payments on their loan by contacting the Department of Education at 800-848-0979 or by completing and submitting the appropriate forbearance form
• The Federal Direct PLUS is unsubsidized so parents will be charged interest during periods of deferment or forbearance. If they don't pay the interest as it accrues, it will be capitalized (that is, added to the principal amount of the loan) and additional interest will be based on that higher amount
• The repayment period is normally 10 years, not including periods of deferment or forbearance
• If parents are denied the Federal Direct PLUS, they may reapply with an endorser online at studentloans.gov or the student may borrow additional funds through the unsubsidized Federal Direct Stafford Loan program. Before the Financial Aid Office can process the additional Federal Direct Unsubsidized Stafford Loan, the student must accept the additional loan amount on MyTrineFA. The amount a student may borrow will be determined by the Financial Aid Office with a maximum of $4,000 for first- and second-year students and $5,000 for third- and fourth-year students.

• Complete the FAFSA (Free Application for Federal Student Aid), you can complete the FAFSA online at www.fafsa.gov .
• Complete the PLUS Application and MPN by using our "How to Complete a Parent PLUS Loan" on our forms page www.trine.edu/forms.

If you are a graduate student and need to borrow funds beyond the federal direct unsubsidized loan limits, you may be able to participate in the Federal Direct Grad PLUS Loan program. The Grad PLUS Loan will have a fixed 7.9 percent interest rate and a 4% origination fee.

Eligibility

• Must complete a Free Application for Federal Student Aid (FAFSA)
• Must be admitted to a graduate or professional program
• Must be a U.S. citizen or eligible non-citizen
• Must be enrolled at least half-time
• Must not have adverse credit history as determined by federal regulations
• Must not be in default on any student loan

Must have exhausted all Direct Stafford Unsubsidized Loan Limits prior to utilizing this Grad PLUS loan. 

Credit checks

While credit checks are required to be eligible, credit criteria are less restrictive than those for most private student loans. If you do not meet the credit requirements, you may still qualify for the loan if you have someone who does meet the credit requirements endorse the loan.   An endorser, unlike a co-signer, is not liable for your Graduate PLUS loan debt if you become permanently disabled or die.

How does the process begin?

To apply, complete the Free Application for Federal Student Aid (FAFSA). You must first be offered the unsubsidized direct loan. You must accept, reduce, or decline that loan prior to requesting the Direct Grad PLUS Loan.

Master promissory note

Before the loan can be disbursed, you must complete a separate MPN. Read carefully all of the terms and conditions of the Grad PLUS Loan explained in the MPN. By signing the MPN, you promise to repay the loan. You can sign the required MPN electronically with your U. S. Department of Education-issued PIN. If you don't already have their PIN, you can request one on the official PIN site. www.pin.ed.gov

The Grad PLUS MPN can be used for one or more loans in one or more academic years. This means that, in most cases, you may receive additional Direct PLUS loans for up to 10 years without completing a new PLUS MPN.

Entrance counseling

First-time borrowers under this loan program are required to complete entrance counseling. Your loan(s) will not disburse until you have successfully completed the entire entrance counseling process.

Complete the session online at the U.S. Department of Education's site www.studentloans.gov.   

Once at the site, log in and select Entrance Counseling. Make the selection corresponding to your loans:

• If you are new only to the Graduate PLUS loan program, select the middle option.
• If you are a first time borrower to both the Graduate PLUS loan program and the Ford Federal Direct Subsidized/Unsubsidized Loan program, select the third box and you will fulfill the entrance counseling requirement for both loan types.

Make sure to print a copy of the Borrower's Rights and Responsibilities for your records.

Renewal

Awards cannot be automatically renewed. Students must apply annually and continue to meet the eligibility requirements listed above.

Repayment
A Graduate PLUS borrower will receive a deferment while he or she is enrolled at least half-time at an eligible school. Upon dropping to less than half-time enrollment status, the borrower is not entitled to a grace period on his or her PLUS loans and repayment will begin within 45 days. The length of repayment and monthly payment amounts depend on the outstanding loan balance, the interest rate, and repayment policies. Interest on the Federal Direct Graduate PLUS Loan begins to accumulate at the time the first disbursement is made.

Maximum Loan Amounts

The maximum Graduate PLUS Loan you may borrow per academic year is equal to your cost of attendance minus other financial aid (including Federal Direct Subsidized and/or Federal Direct Unsubsidized Loans for which you are eligible). There is no aggregate maximum loan limit for the Graduate PLUS Loan.

Your eligibility for a Graduate PLUS will be reduced accordingly if you borrow a private loan through an outside banking institution.

You may contact the Financial Aid Office at anytime if you wish to cancel all or a portion of any Federal Direct Stafford or PLUS loan.

School Code of Conduct

This code of conduct applies to all employees, officers and agents - particularly to all who have responsibilities with respect to Federal Student Aid and student loans. Trine does not have a preferred lender list.

Trine prohibits the following activities:

• Assigning lenders to first time borrowers.
• Causing unnecessary loan certification delays based on lenders. (Unintentional delays could occur when a lender is selected that does not have suitable technical capabilities with our normal loan processing.)
• All revenue sharing between lenders and this school (loan volume in exchange for money or gifts)
• Financial Aid/Business Office employees and their family members receiving gifts* from lenders or guarantors or servicers
• Contracting between school employees and lenders
• Opportunity pool loans
• Staffing assistance provided by lenders
• Printing costs or services provided by lenders
• Delaying loan certification based on borrower choice of lender
• Trine officers and employees receiving remuneration for service as a member or participant of an advisory board of a guarantor or lending institution involved in higher education loans, with the exception of receiving reasonable travel expense reimbursement.

*Definition of “gifts” - a gift is any gratuity, favor, discount, entertainment, hospitality, loan, or other item having greater than a small monetary value (approximately $10). A gift is not:

• a brochure, workshop, or training using standard materials relating to a loan, default aversion, or financial literacy
• food, training, or informational material provided as part of a training session designed to improve the service of a lender, guarantor, or servicer if the training contributes to the professional development of the institution’s officer, employee or agent
• favorable terms and benefits on an education loan provided to a student employed by the institution if those terms and benefits are comparable to those provided to all students at the institution
• Philanthropic contributions from a lender, guarantor, or servicer that are unrelated to education loans or any contribution that is not made in exchange for advantage related to education loans

If you have specific questions about loans, please contact the Financial Aid Office at 800.347.4878 (option 2) or finaid@trine.edu.