Federal Student Loans
Using student loans to help finance your education can be one of the best investments you’ll ever make. However, as with any loan, these are funds that will need to be repaid so be sure to borrow wisely. There are a variety of federal loans that you may qualify for.
Important Information – Undergraduate students are required to earn 24 credits and complete 32 weeks of instruction in order to be eligible to obtain a new loan.
Graduate students are required to earn 18 credits and complete 32 weeks of instruction in order to be eligible to obtain a new loan.
Federal Direct Student Loans
Subsidized loans – The interest for this type of loan is being paid (“subsidized”) by the federal government while you are enrolled at least half-time. The amount you are eligible to receive is determined by a number of factors including; the results of your FAFSA, your grade level and the amount of subsidized loans previously received. First time borrowers must complete an online entrance counseling session as well as a Master Promissory Note using the
Department of Education’s website.
Unsubsidized loans – The interest for this type of loan is either paid by you while you are in school (recommended) or it is “capitalized”. Interest capitalization is simply adding the accrued interest to the loan amount so that you can pay it later. However, since this will result in you paying interest on interest, it is a more expensive option. The amount you are eligible to receive is determined by your dependency status and grade level.
Parent PLUS loans – This loan is credit-based and only available to the parents of a dependent undergraduate student. A credit check will be conducted each time a new loan is requested. A parent who does not pass the credit check may elect to obtain a credit-worthy endorser or the student can receive additional unsubsidized student loan funds in his/her own name. Parents who would like to apply for a Parent PLUS loan need to complete and submit a
credit check authorization, a
Parent PLUS Loan Request Form as well as a
Master Promissory Note.
Graduate PLUS loans – This loan is credit-based and only available to students enrolled in a Graduate program of study. A credit check will be conducted each time a new loan is requested. If you do not pass the credit check you may elect to obtain a credit-worthy endorser. To apply for a Grad PLUS loan you need to complete and submit a
credit check authorization, a
Grad PLUS Loan Request Form, a Grad PLUS Entrance
Counseling session and Master Promissory Note.
Need more information? Access our Student Loan Fact Sheet for more details!
Private, non-Federal Student Loans
Before applying for a private loan, be sure that you have taken full advantage of your eligibility for federal financial aid since private loans are generally more expensive.
Note that in most cases, you will be able to get better loan terms if you apply with a credit-worthy co-signer.
In order to help you “shop” for a Private Loan lender, we are providing a complete list of all of the lenders who made a Private Student Loan to Ottawa University students since January, 2007.
As you work through the process of applying for a Private Student Loan, some of the things you may want to ask about are:
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Interest rates:
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Are they fixed or variable?
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If variable, how often do they change?
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Is there a cap that the interest rate will not exceed?
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Fees:
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Are there front-end fees and if so, how much are they?
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Co-signers:
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What will the loan cost with or without a co-signer?
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How long will it take before the co-signer is released from the obligation?
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Repayment options:
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When does repayment begin?
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Are payments required while still in school?
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Are you allowed to make payments while in school (e.g. interest only)?
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What are the repayment terms (e.g. number of years)
Private Loan Lender List
Types of Grants
Federal Pell Grant: This is the most common type of grant. The application for this is the FAFSA and the results of that application will dictate how much and whether you are eligible to receive these funds.
Federal TEACH Grant: This is a “forgivable loan” available to education students who are in specified majors and who agree to work for four years in a high-need field in a low-income school. All four years of work must be completed within eight years of the student leaving school. If you meet the terms of this agreement you do not need to repay these funds to the federal government. To apply for this program, complete the FAFSA, read and submit the
Teach Grant Eligibility Document, and complete the online Entrance Counseling and Agreement To Serve via the
Department of Education’s website.
State Grants: Many states offer their residents a variety of programs to help encourage higher education. Please contact the state agency in your area to determine what programs, if any, for which you may qualify.
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Arizona state residents: Click here to obtain information about the Arizona grant programs.
Ottawa Univeristy Life of Significance Grant: This is a University Grant awarded to new incoming Freshman and Sophomore students beginning with the Spring, 2013 term. The grant amount is $100 per credit for up to 24 months or until the student has earned 54 or more credits, whichever comes first. To qualify, the student must: 1) have and maintain a minimum 2.0 GPA in all Ottawa courses and 2) submit a 500 word essay on “what a life of significance means to me”. The essay should be submitted to the students Enrollment Advisor during the admissions process.