Loan Process

How do I receive the loans listed in my Award Letter?

1.  Return your Award Letter
Your loan(s) will not be processed until you return your signed award letter to the Financial Aid office. Once we receive your award letter and you have indicated you want to borrow a student loan, we will electronically submit your loan request(s).

2.  Complete Student Loan Entrance Counseling -  If you are a first-time Federal Direct Stafford student loan borrower at Franklin University, you must complete the Student Loan Entrance Counseling. This is a one-time requirement at Franklin.

3. Complete a Master Promissory Note (MPN) for Direct Federal Stafford Loans 
If this is your first time borrowing a DIRECT loan, you must complete a DIRECT loan MPN. If you completed a DIRECT loan MPN more than 10 years ago, your MPN is expired and you must complete another one.

4. Student Loan Exit Counseling 
If you borrowed federal student loans, completing loan exit counseling is a federal requirement. You must complete the loan exit counseling if you are graduating with an associate's, bachelor's, or master's degree, or if you cease to be enrolled or are enrolled less than half time (undergraduate - six semester hours; graduate - three semester hours).

Choose the appropriate link to complete your exit counseling:

• FFELP (2008-2009 and prior borrower)   
• DIRECT (2009-2010 and beyond borrower)

When will I receive the proceeds of the loan?
Franklin University will send you a notification (typically by email) when the proceeds are applied to your tuition account at Franklin. If a credit balance is created when the loan funds are applied, a student refund will be issued within 10-14 business days after the date the credit balance occurred. You can view your tuition account at my.franklin.edu. 

Important Facts About Federal Direct Stafford Loans

There are two types of Stafford loans: subsidized and unsubsidized. The Financial Aid office will determine if you qualify for subsidized, unsubsidized, or both.

• Repayment begins 6 months after graduation, stops attending at least half time, or leaves school.
• Standard repayment is 10 years, but there are other options available.
• Interest rates are subject to change every July 1. View current rates and a loan calculator.
• At least half-time attendance is required (undergraduate-6 semester hours; graduate-3 semester hours)
• Franklin University requires student loan funds be applied directly to outstanding balances within the same financial aid year. If this creates a credit balance, a refund will be issued within 10-14 business days.  
• Direct Loans are subject to a loan fee, minus an up-front interest rebate that is contingent upon 12 months of on-time payments when the loan enters repayment. You can find more information about loan fees and interest rebates on the DIRECT Loan Web site.
• Borrowing is a personal choice and should be made after careful consideration of the terms of the loan
• View current maximum loan ceilings per academic year for subsidized and unsubsidized Direct loans.
  
  

Subsidized Stafford loans are awarded to students based on need. The federal government pays the accruing interest on these loans when students are enrolled in school at least half-time, during students' grace period, and during any periods of deferment. The fixed interest rate is 5.6% for undergraduate loans first disbursed between 7.1.09 and 6.30.10. The fixed interest rate is 4.5% for undergraduate loans first disbursed between 7.1.10 and 6.30.11.

Unsubsidized Stafford loans are not based on need, and students are responsible for paying accruing interest. Students can choose to pay the interest while in school, or have it added to their loan balance. The fixed interest rate for undergraduate loans 6.8%.  

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.