Gwynedd Mercy University
AY2021-2022 Undergraduate Academic Catalog
Loans are regarded as “ self-help ” and are made directly to students to help them cover the costs of their education . Loans need to be repaid .
Several types of loans are available to qualified students for all four years of study : Federal Subsidized , Federal Unsubsidized , Parent PLUS , and private student loans .
Loan amounts offered to students are contingent on adequate federal funding .
A loan is a serious responsibility and obligation . Students should exercise discretion when borrowing money for school . The full amount borrowed plus all accrued interest must be repaid whether or not the student borrower completes his / her program of study . Transcripts will not be released for any student whose file reflects default on repayment of a student loan
While the principle of a student ’ s loan may be deferred as long as the student is enrolled at least half-time , students may be responsible for making interest payments while enrolled . Repayment begins 6 months after a student drops below half-time or graduates and can be repaid over a 10-year period . Under certain federally mandated and approved conditions , borrowers may arrange to defer loan repayment and / or qualify to have loans cancelled in whole or part . Borrowers should note both deferment and cancellation provisions when negotiating the loans .
Federal Direct Loans The Federal Direct Loan Program provides annual loans up to $ 5,500 for freshmen , $ 6,500 for sophomores , $ 7,500 for juniors and seniors , and $ 20,500 for graduate students . The aggregate loan limit is $ 31,000 for undergraduate study and $ 138,500 for graduate study ( including any undergraduate Federal Direct Loans ).
Subsidized Federal Direct Loans : All applicants must demonstrate financial need to receive a subsidized Direct Loan . For eligible students , a subsidized Federal Stafford and Direct Loan means the Federal Government will pay applicable interest during the student ’ s enrollment and the six-month grace period . Repayment begins six months after graduation or termination of studies and borrowers are allowed 10 years to repay the loan . The Federal Direct Loan Master Promissory Note can be completed online at
https :// studentaid . gov .
Unsubsidized Federal Direct Loans : Students who do not qualify for the federal interest subsidy because they do not meet the federal financial need analysis standards are eligible to borrow through the unsubsidized Federal Direct Loan program . The unsubsidized loan can be issued for the full amount of eligibility or in combination with a subsidized Federal Direct Loan . However , on any portion of the unsubsidized loan , interest must be paid by the student . Otherwise , all terms and conditions of the loans under the subsidized Federal Direct Loan Program apply to unsubsidized Federal Direct Loans .
Students who meet the federal requirements for independent student * status may be eligible to receive additional funding through the unsubsidized Federal Loan Program . Total Direct Loan borrowing ( including subsidized and unsubsidized loans ) may not exceed the following annual maximums : Freshman $ 9,500 Sophomore $ 10,500 Junior & Senior $ 12,500 Graduate Level $ 20,500
* Independent undergraduate aggregate is $ 57,500
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