Loans
Click here for an important update on student loans
Loans are available for all of our students and families. Some loans will be part of the need-based financial aid package you receive from Concordia, while others are available regardless of your demonstrated financial need. All loans except private require ASA.
Types of Loans
Federal Subsidized Stafford Loan: Need-based
Federal Perkins Loan: Need-based
Federal Unsubsidized Stafford Loan: Non-need-based
Federal PLUS Loan: Non-need-based
SELF Loan: Non-need-based
Private Loans: Non-need-based
Loans must be repaid in full, including interest and fees. Student loans have long repayment periods that generally do not begin until six months after you have left school. Interest rates, origination fees and discounts vary depending on the type of loan and lender.
Selecting a Lender
One important decision you must make when borrowing is selecting a lender. We strongly recommend using the same lender for your entire loan needs whether you are using a federal or alternative loan program.
Getting Started
You will be required to sign a Master Promissory Note (MPN) detailing the terms of repayment for each loan program you use. Generally, MPNs can be signed online and are required for first-time borrowers. In addition to the MPN, most loan programs also require first-time borrowers to complete an online entrance counseling session. These independent sessions take approximately 15 minutes.
Receiving Your Money
Loan proceeds are generally applied to your account in two equal semester disbursements. If your loan funds exceed Concordia charges, excess will be disbursed to you from the Business Office. This is common for students paying off-campus living expenses.
Managing Your Loans
Before you graduate or drop below half-time attendance, you are required by federal regulation to complete an exit counseling session. The Financial Aid Office will notify you of sessions prior to graduation. The sessions help you to learn about managing your student loans after college.
International Students
International students are not eligible for federal loans, but can use SELF or CitiAssist and Bremer private loans to help finance their education.
Important update on student loans
Due to the subprime mortgage credit crisis and lender subsidy cuts included in the College Cost Reduction and Access Act of 2007, some lenders have announced that they will no longer participate in FFELP (Stafford and PLUS) and/or private loans.
What should incoming students and parents do?
Concordia College has created list of Stafford, PLUS and private lenders who are still processing loans. Incoming freshmen can select a lender from these lists for Stafford and private loans. Parents can select a lender from these lists for PLUS (Parent Loans for Undergraduate Students). If you prefer to use another lender, please call that lender to make sure they are still participating and processing loans. If they are, obtain a paper Master Promissory Note and instructions on how to apply.
Information on processing loans is being sent to all students who have completed a FAFSA. Students and parents should process loans (select a lender, sign Master Promissory Note, complete entrance counseling) between June 1 and June 30.
If you haven't done so already, be sure to complete a 2008-09 FAFSA (Free Application for Federal Student Aid) at http://www.fafsa.ed.gov/.
What should returning students and parents do?
If your lender is no longer participating in the student loan program, the Financial Aid Office will be sending you a letter in May outlining your options. You will need to select a new lender and sign a new Master Promissory Note (MPN).
The following lenders have been used by Concordia students and parents in the past and are no longer participating in either Stafford, PLUS or private:
Academic Funding Group (AFG): out of Stafford, PLUS, private
Student Assistance Foundation (SAF): out of Stafford, PLUS, private
College Loan Corporation (CLC): out of Stafford and PLUS
Student Capital Corporation (SCC) - out of Stafford, PLUS, private
Twin City Federal (TCF) - out of Stafford, PLUS and private
There are other lenders who have withdrawn from the loan programs but very few Concordia students or parents have loans with them. If you are one of them, we will be in touch with you in May.
If your lender is still participating in the student loan programs, you don't need to do anything!
If you haven't done so already, be sure to complete a 2008-09 FAFSA (Free Application for Federal Student Aid) at http://www.fafsa.ed.gov/.
What is Concordia doing?
Concordia has identified a group of lenders who haven proven to the college that they provide outstanding customer service and competitive borrower benefits. We have listed these lenders on our website in three different lists: Stafford, PLUS, private. We anticipate that these lenders will remain in the student loan programs so that loan funding options will be readily available to students.
You can choose lenders on this list or lenders who are not on the list - the list is meant as a guide for you.
Stafford eligibility, either subsidized or unsubsidized, is determined by the college and does not include an evaluation of credit-worthiness. Because there are sufficient Stafford lenders, we do not anticipate that students will have any difficulty obtaining Stafford loans for 2008-09. First year students are eligible for $5500, second year students $6500, third and fourth year students $7500. The interest rate is either 6% (subsidized) or 6.8% (unsubsidized).
PLUS and private loan eligibility is based on certification by the college as well as a determination of credit-worthiness by the lender. It is anticipated that because of the subprime mortgage credit crisis that it is possible borrowers may have more difficulty being approved for private loans in 2008-09. Also, if a parent has a foreclosure on their credit report, they will not be eligible for a PLUS loan. If a parent is denied a PLUS loan, the student can take out additional unsubsidized Stafford for either $4000 (first and second year students) or $5000 (third and fourth year students).
