Loans

Description: A FAFSA application must be completed before applying for this loan.

Type of Aid: Loan

Amount: Varies

Eligibility: Must be enrolled at least half-time as an undergraduate student. Eligibility based on the FAFSA.

Interest: 4.99% (2022-2023 school year)

Repayment: Repayment begins six months after student graduates, leaves school, or drops below half-time.

External Application: myfa.taylor.edu

Description: The unsubsidized loan is a non-need based loan with eligibility determined through the FAFSA. Interest begins to accrue at the time of disbursement and is the responsibility of the student.

Type of Aid: Loan

Amount: Varies

Eligibility: Must be enrolled at least half-time. Eligibility based on the FAFSA.

Interest: 4.99% for undergraduates and 6.54% for graduate students (2022-2023 school year)

Repayment: Repayment begins six months after student graduates, leaves school, or drops below half-time.

External Application: myfa.taylor.edu

Description: The PLUS (Parent) Direct Loan is a non-need based loan with eligibility determined through the FAFSA. It is available only to parents or step-parents. This loan helps to pay for education expenses up to the cost of attendance minus all other financial assistance. Interest begins immediately. The PLUS loan is in the parent’s name. If the parent is denied the PLUS loan after the credit check performed by the Department of Education, the student is then eligible for an additional Unsubsidized Loan.

Type of Aid: Loan

Amount: Varies

Eligibility: Available only to parents or step-parents of student.

Interest: 7.54% (2022-2023 school year)

Repayment: Repayment begins 60 days after the last disbursement. The payment can be deferred until after graduation if requested.

External Application: studentaid.gov

Description: This is a private student loan through the Questa Foundation. Students must apply and be approved through the Questa Foundation. Scholars could receive up to 75% of their loan forgiven.

Type of Aid: Loan

Amount: Varies

Eligibility: Must be from one of the 11 counties of northeast Indiana (Adams, Allen, DeKalb, Huntington, LaGrange, Kosciusko, Noble, Steuben, Wabash, Wells, and Whitley) and be approved through Questa application process. Must meet Questa Foundation rules for loan forgiveness.

Repayment: Refer to terms of the individual loan.

External Application: Apply through Questa Foundation.

Description: This is a private student loan through the bank of your choice. Students should exhaust all federal aid and direct loan opportunities before applying for this loan. Most alternative loans require a cosigner.

Taylor University has a strict code of conduct for all employees involved in the processing of student and parent loans. This code of conduct prohibits:

• Revenue-sharing arrangements with any lender
• Receiving gifts from a lender, guarantor, or loan servicer
• Contracting arrangement providing financial benefit from any lender or affiliate of a lender
• Directing borrowers to particular lenders, or refusing or delaying loan certifications
• Offers of fund for private loans
• Call center or financial aid office staffing assistance
• Advisory board compensation

Type of Aid: Loan

Amount: Varies

Eligibility: Must be enrolled at least half-time.

Interest: Variable or Fixed

Repayment: Refer to terms of the individual loan.

Application: Alternative Loan Information

External Application: Apply through FASTChoice or apply through InvestED Student Loan Marketplace.

The federal loan is awarded to those students who file the FAFSA form. Repayment of the federal loan begins 6 months after graduation or the student drops below half-time status and the standard repayment period is 10 years. The maximum loan eligibility depends on the student’s grade level. Freshmen can receive up to $3,500, sophomores can receive up to $4,500, and juniors and seniors can receive up to $5,500. This base amount of loan may be split between subsidized and unsubsidized loans based on the financial need of the student. Additionally, all students are eligible to borrow an additional $2,000 unsubsidized federal loan per year.

The federal loan consists of subsidized and unsubsidized loans.

Subsidized Federal Loan: The subsidized loan is available to students with financial need based on the FAFSA calculation. The interest rate for the 21-22 academic year is a fixed rate of 3.73%. The interest rate for the 20-21 academic year has a fixed rate of 2.75%. The 19-20 academic year has a fixed rate of 4.53% and the 18-19 academic year has a fixed rate of 5.05%.

Unsubsidized Federal Loan: The unsubsidized loan is not based on need but a FAFSA is required to determine the student’s need level. The interest rate for the 21-22 academic year is a fixed rate of 3.73%. The interest rate for the 20-21 academic year has a fixed rate of 2.75%. The 19-20 academic year has a fixed rate of 4.53% and the 18-19 academic year has a fixed rate of 5.05%.

For the subsidized federal loan, the federal government pays the interest on the loan while you are in school or drop below half-time status. You are not responsible for any interest on the loan while in school at least half-time. For the unsubsidized federal loan, you are responsible for the interest on the loan from the date that loan funds are disbursed. While you are in school, you can choose to pay the interest on a quarterly basis or you can choose to have the interest capitalized, or added to the loan principal. If you choose this option, you will pay more overall since you will be paying interest on interest when you begin repayment of the loan principal six months after you graduate or drop below half-time status.

The student may apply for the federal loan in the student’s name by going to myfa.taylor.edu. You will need to complete Step 1, which is a request under the “Apply Online” tab. If you are a first-time borrower, you will need to complete entrance counseling, which is Step 2, as part of the loan application process. First-time borrowers should allow approximately 30-45 minutes to complete the entrance counseling and loan application process. Step 3 is the master promissory note (MPN). It is a legal loan document and must be e-signed by the student borrower. A link to both the entrance counseling and master promissory note can be found under the “Documents” tab.

The Federal PLUS Loan is a parent loan. The parents can take out the PLUS loan in their name and they are responsible for repaying the loan. The PLUS loan has a fixed interest rate of 7.54% for the 22-23 academic year. The PLUS loan interest rate for 21-22 was 6.28%. The interest rate for the 20-21 academic year was 5.30%. The interest rate for the 19-20 academic year was 7.08%, and the interest rate for 18-19 academic year was 7.60%.

Repayment can be deferred until after graduation or can begin within 60 days of the final disbursement for the academic year (typically at the end of March for loans taken at Taylor). The standard repayment period is 10 years. The parent may apply for the Federal PLUS Loan in the parent’s name using the FAFSA PIN and Social Security Number by going to studentaid.gov. After login, click the Request A Direct PLUS Loan link.

If the parent either cannot or does not feel comfortable borrowing the parent loan, students can pursue private student loans through a bank of their choice. Students should exhaust all federal aid and direct loan opportunities before considering this type of loan, and should keep in mind that most alternative loans require a cosigner. We recommend finding a credit-worthy cosigner in order to keep interest rates as low as possible.

Alternative loans are dictated by the terms of the individual loan. They vary in amount, can have either variable or fixed interest rates, and the terms of repayment are decided on a case-by-case basis.

FASTChoice by Great Lakes is an alternative loan application system where students and parents are able to search, compare, and apply for alternative loans. The lenders listed at FASTChoice have offered quality customer service to our students in the past and offer competitive interest rates and lower fees.

The FASTChoice list is not an exhaustive list of lenders offering alternative loans. InvestED Student Loan Marketplace is another resource, and it is your prerogative to seek a loan from any lender that you choose. To apply through a lender of your choice, contact the lender individually and apply through their process.

Be wary of any loan offer that you do not initiate. Direct to Consumer Loans are generally unsolicited loan offers sent directly to the student or parent. These loans have higher fees and higher interest rates than the federal loan programs, and most likely higher than other school certified alternative loans. IMPORTANT NOTE: DTC loans typically do not require school certification; however, once the school is aware of the loan the school is required to include the amount as a resource and this loan will reduce eligibility for more desirable federal, state and institutional aid programs, including the loss of grant aid. It is always wise to contact the Financial Aid Office at 765-998-5358 before pursuing an educational loan such as an alternative loan or a Direct to Consumer Loan.

Taylor University participates in the Direct Loan Program. The Federal Government is your lender. There are several steps you may be required to do for each loan, so make sure you read and follow the instructions associated with each loan.

You may apply by following the link associated with each loan at myfa.taylor.edu. Taylor University electronically transmits loan data and receives your loan disbursements via EFT through the Direct Loan Program. The Student Accounts Office will email a receipt once the funds have been credited to your student account.

Only you can determine how much you can afford to borrow to cover your educational costs. Generally, financial planners recommend that you borrow no more than your anticipated annual first year salary or that your anticipated monthly loan repayment not exceed 8-10% of your anticipated monthly take-home pay. There are loan interest and repayment calculators at studentaid.gov to assist you in your financial planning.

For the class of 2021, 53% of the graduates borrowed from at least one student loan program (Taylor loan, federal loan, and/or alternative student loan) for a total average indebtedness of $24,096.