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Loans
Through the Federal Family Education Loan Program, Marymount Manhattan may issue one or a combination of loans to students and their families. The total loan package is based on need and college credits completed. MMC is dedicated to serving our students and parents to ensure they receive vital information on college procedures and practices. At Marymount Manhattan College, we believe that students and parents have the right and ability to select the education provider of their choice. Therefore, the college does not maintain a preferred lender list. Our Financial Aid office works with all lenders and guarantors to ensure the accurate and timely processing of Federal Stafford, Federal PLUS, and private loans on behalf of our students and their parents. Below is a list of loan programs in which MMC participates.
Federal Stafford Loan
Stafford Loans are either subsidized or unsubsidized. A student can receive a subsidized loan and an unsubsidized loan for the same enrollment period. A subsidized loan is awarded on the basis of financial need. A student will not be charged any interest before repayment or during authorized periods of deferment because the federal government "subsidizes" the interest during these periods. Repayment begins six months after graduation or after a student drops below half-time status.
Unlike a subsidized loan, an unsubsidized loan is not based on financial need. Interest is charged from the time the loan is disbursed until it is paid in full. If a student allows the interest to accumulate while in school or during other periods of nonpayment, it will be capitalized – that is, the interest will be added to the principal amount of the loan.
The interest rate for subsidized and unsubsidized Stafford loans made after July 1, 2006 is fixed at 6.8%.
The following schedule shows the annual decreases in the fixed interest rates on undergraduate subsidized Stafford loans:
- 6.0% for loans first disbursed between 7/1/08 – 6/30/09
- 5.6% for loans first disbursed between 7/1/09 – 6/30/10
- 4.5% for loans first disbursed between 7/1/10 – 6/30/11
- 3.4% for loans first disbursed between 7/1/11 – 6/30/12
The rate for loans disbursed prior to July 1, 2006 is variable (subject to change each year) but does not exceed 8.25%. Variable interest rates are adjusted each year on July 1. You will be notified of variable interest rate changes throughout the life of your loan. If you have subsidized loans, you will not be charged interest while enrolled in school at least half time, during a grace period, or during authorized periods of deferment. Interest will begin to accumulate when you enter repayment.
If you have unsubsidized loans, you'll be charged interest from the day the loan is disbursed until it is paid in full, including during in-school, grace, and deferment periods. You can pay interest during these periods or it can be capitalized.
Annual Stafford Loan Limits for Dependent Students
(effective July 1, 2008) |
| Year in School |
Base Subsidized/Unsubsidized Amount |
Additional Unsubsidized Amount |
Total Amount |
Additional Unsubsidized if parent is denied PLUS loan |
Freshman
Sophomore
Junior/Senior
|
$3,500
$4,500
$5,500
|
$2,000
$2,000
$2,000
|
$5,500
$6,500
$7,500
|
$4,000
$4,000
$5,000
|
Parent Loan for Undergraduate Students (PLUS)
The PLUS Loan is available to parents of dependent, undergraduate students enrolled at least half time. Parents may borrow up to the cost of education minus any other estimated financial aid, assuming they meet established criteria. Due to new Federal regulations set by the Department of Education students must file a FAFSA in order to determine eligibility for the PLUS loan program. A dependent student for whom a PLUS Loan is borrowed must meet the general eligibility criteria in 34 CFR 668 Subpart C and a parent borrower must meet the eligibility criteria, such as citizenship, specified in 34 CFR 682.201(c)(1) for the FFEL Program and 34 CFR 685.200(c)(1) for the Direct Loan Program. The current PLUS loan is a fixed rate of 8.5%. Each loan also carries an origination fee of 3% and a federal default fee of 1% of the amount borrowed. The lender deducts these fees from disbursements sent to the college.
To process a credit pre-approval & to E-Sign the Parent MPN go to www.hesc.com, then follow the instructions below:
- Under Students, Families, Borrowers & Counselors
- Select New York Resident or Outside of New York
- Select Complete the e-mpn/Apply for your loan
- Under Parents only click on "Begin the Parent PLUS Loan e-MPN and/or Credit Check Process"
Note: If your parent is denied a PLUS loan, we will automatically process an additional Unsubsidized Federal Stafford loan for you.
Grace Period and Deferment for Parent PLUS Borrowers
Beginning July 1, 2008, parents can choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
In addition a special provision for parents delinquent on Mortgage Payments has been passed. This will allow lenders to consider parents eligible for PLUS loans even if, during the period January 1, 2007, through December 31, 2009, the parents are or were:
- No more than 180 days delinquent on a mortgage payment on their primary residence
- No more than 180 days delinquent on any medical bill payments
- No more than 89 days delinquency on the repayment of "any other debt"
Alternative Loans (Private Loans)
These loans are offered through various lenders. They are private loans and are not subject to federal regulations. Students are the borrowers of these loans but may need a co-signer. Many lenders offer incentives that can reduce your loan balance or lower your interest rate. Select a lender who meets your needs. You need to complete a credit check and apply for the alternative loan through the lenders website or process. Please note it is the responsibility of the borrower to ensure that the Financial Aid Office receives any certification requests from lenders.
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