Types of Loans

Graduate Federal Loans

NOTE: In accordance with U.S. Department of Education regulations (HEOA 489 amended HEA Sec.485B) a student (or parent) title IV loan information is submitted to National Student Loan Data System (NSLDS). Authorized agencies, lenders, guarantors, servicers and institutions have access to this information. For more loan information student and parent borrowers can visit StudentAid.ed.gov.

Graduate students who are registered for 5 or more credits per semester are eligible to apply for the following federal loans:

Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Loan is for students who are US citizens/permanent residents and does not require a credit check. Details on this loan:

• The interest rate on an Unsubsidized Loan for the 2024-25 year is fixed at 8.08%.
• The interest rate on an Unsubsidized Loan for the 2023-24 year is fixed at 7.05%.
• Interest begins to accrue after the first disbursement and can either be paid quarterly or can be capitalized meaning the interest would be added to the loan amount borrowed.
• This loan has an origination fee charged by the government and collected from the loan before the funds are sent to Simmons.
  • Loans disbursed on or after October 1, 2020 and before October 1, 2025 will have an origination fee of 1.057%.
• Standard repayment begins six months after graduation (or dropping below half time enrollment) and continues for up to ten years, although there are extended repayment plays (up to 25 years) available.
• There are no penalties or fees if you prepay your loan in part or in full.

To apply for this loan

• Students should have completed a FAFSA for the academic year
• Recipients are required to sign a Master Promissory Note (MPN) for Unsubsidized Loans prior to the start of their first semester of borrowing at Simmons.
• In addition, you will need to complete Entrance Counseling before loan funds can be credited to your account.

Failure to sign both the MPN and Entrance Counseling will result in cancelation of the loan.

Graduate Direct PLUS Loan

The Graduate PLUS Loan is a federally funded loan that enables graduate students to borrow up to the full cost of attendance less any other financial aid received. Here are details about this loan program:

• The interest rate on a PLUS loan for the 2024-25 academic year is fixed at 9.08%.
• The interest rate on a PLUS loan for the 2023-24 academic year is fixed at 8.05%.
• This loan has an origination fee charged by the government and collected from the loan before the funds are sent to Simmons.
  • Loans disbursed on or after October 1, 2020 and before October 1, 2025 will have an origination fee of 4.228%.
• Disbursements are made in equal installments over the semesters within an academic year
• Interest accrues after the first disbursement, but the first payment is not due until approximately 60 days after the loan fully disburses.
• The standard repayment period is ten years, although there are extended and graduated plans available
• The principal payment may be deferred for up to 4 years while the student is enrolled on at least a half-time basis. Interest will accrue during deferment and can be paid quarterly or capitalized.
• The credit check used to approve the loan is valid for 180 days. Please do not apply for your loan more than 90 days before the start of your intended loan period.

Determining how much to borrow

Disbursements for federal loans are made in equal installments over the semesters within an academic year. Loans will not be certified for a partial period of enrollment (i.e. a single semester) unless it is the student’s final period of enrollment for that academic year. Therefore, it is important for you to calculate the total amount you will need to borrow for the year when applying for your loan.

If you need assistance calculating the amount you need to cover your tuition bills for the year, please use our Graduate Planning Worksheets and/or contact your assigned financial aid counselor.

Also, keep in mind that you will need to account for the origination fee. To do this, you will need to divide the amount you want to receive (net) by 1 minus the origination fee for the aid year. For example:

Divide the amount you want to net by (1 - origination fee):
$10,000
÷ (1 - 0.04228)
Amount to borrow: $10,441

To apply for the PLUS Loan

1. Complete the FAFSA form for the current year.
2. Complete the Direct PLUS Loan Application for Graduate/Professional Students.
3. Complete the PLUS MPN for Graduate/Professional Students.
4. Complete Entrance Counseling (if not already completed for a Direct Unsubsidized Loan).

If you are denied a PLUS Loan you will have these options:

1. You can contest the credit decision on your PLUS Loan application by appealing directly to the Direct Loan program. More information is available by logging into the Direct Loan website or by calling Applicant Services at 800.557.7394 (8 AM- 8 PM ET, Mon-Fri).
2. You can choose to add an endorser to your PLUS Loan application in order to get credit approved. To add an endorser, you and your endorser should submit the additional information via the Direct Loan website. For assistance, please contact Applicant Services at 800.577.7394 (8 AM- 8 PM ET, Mon-Fri).

Canceling Your Federal Student Loan

Direct Loan funds that are returned within 120 days of the disbursement by the school or the borrower, for any reason, are treated as a partial or full cancellation, with the appropriate adjustment of the loan fee and interest.

If the loan has not yet disbursed to your student account:

• Fill out the Loan Adjustment Request Form available on our forms page.

If the loan has already disbursed to your student account and it is within 120 days since your loan disbursed:

• If you did not receive a refund from the disbursement, fill out the Loan Adjustment Request form on our website.
• If you did receive a refund from the disbursement, then you are responsible for returning the money directly to your loan servicer
  • Contact the Federal Direct Loan Servicing Center at 1-800-848-0979.
  • Always use the term "cancellation" or "cancel." to ensure that the interest and fees are removed as well.

Private, Credit-Based Loans

Private education loans are available to students through lending agencies such as banks, credit unions, state authorities and other lenders.

It is important to understand that each private loan provider has its own set of terms, rates and eligibility requirements that vary, unlike a federal loan. It is very important that you take the time to research your options prior to making a decision on borrowing a private education loan.

Before you decide which education Loan that is right for you:

• Check your credit history at annualcreditreport.com. This will give you the opportunity to check for errors, fix mistakes, or catch up on any past due payments you may not have been aware of. All of these things will impact your credit score which is used to determine the interest rate offered on a private education loan.
• Research. Simmons has compiled a historical list of private loan lenders through which our students have borrowed from over the past 10 years. You can access this list by visiting ElmSelect. Additionally, your state education agency may offer education loans for their residents. We will process a private loan from any lender you choose, even if it is not included on our historical list.
• Compare. Here are some tools you can utilize:
  • Alternative Loan Comparison Chart - Document where you can take notes and compare your loans.
  • Loan Comparison Calculator - Online tool to help you compare monthly and cumulative payment based on loan terms and amount borrowed
• Ask Questions. Don’t be afraid to contact a lender directly. They will be able to answer questions you may have on the terms and conditions of their loans.

When you have decided which loan you would like to use, please submit your application directly to your chosen lender. After you are approved, the lending agency will electronically notify Simmons of your approval and request the loan's certification. It generally takes about a week, but once Simmons has certified the loan you will be able to see it pending on your next award letter and bill.