Federal Stafford Loans

Stafford Entrance Counseling

Master Promissory Note (MPN)

Hutchinson Campus Preferred Lender List

Willmar Campus Preferred Lender List

Federal Perkins Loans

Perkins Entrance Counseling

Federal PLUS Loans

Hutchinson Campus Plus Loan Lender Benefits

Willmar Campus Plus Loan Lender Benefits

SELF Loans

SELF Entrance Counseling

Alternative Loans

Consolidated Loans

Important Loan Information

If you intent to apply for a Stafford student loan, you need to read the following instructions, complete the Federal Family Education Loan Worksheet, and return it to the Financial Aid Office. Other types of loans are also available at the Financial Aid Office.

Students who did not have a student loan during the past year at Ridgewater are required to attend an entrance loan counseling session. Your loan application will not be processed and you will be unable to charge against your student loan until you complete entrance counseling.

The third step in receiving a loan disbursement is to complete a MASTER PROMISSORY NOTE (MPN). You can do this online by clicking here, or one will be mailed to you by the guarantee agency for your completion. If you are a returning student and are using the same lender as before, you do not have to complete this step.

Remember that all Students Loans are paid in two (2) disbursements and you must do an "Exit Loan Counseling" session when you are done with your education at Ridgewater College.

Financial Aid Disbursement Dates:

Summer Semester June 6, 2008

It is very important that you are aware of the funds you are expecting to receive for your education. If you are receiving funds other than those applied for on the FAFSA, you need to notify the Financial Aid Office immediately. If these funds cause you to be over funded by the Federal and State guidelines, and you receive the overpayment before your award can be adjusted - you will be required to repay those funds.

The student is responsible for the payment of all expenses, such as payments for tuition and fees, purchases of books and supplies, and other related items when billed. Students that have been permitted to defer payment of certain items until financial aid funds are received are required to pay accounts in full from the first money that comes available.

Federal Family Educational Loan Programs: - What you need to know before you apply!

Federal Stafford Loans

Eligible Borrower
Student enrolled in post-secondary program on at least a half-time basis. School will determine borrower status as either a dependent or independent student.

Interest Rate
Variable rate with 8.25% cap.  As of July 1, 2006 the Stafford Loan programs have a fixed rate of 6.8%.

Loan Limit
Subsidized/Unsubsidized
1st year $3500.00
2nd year $4500.00

As an independent student you may be eligible to borrow up to an additional $4000.00 unsubsidized loan.

Interest Responsibility
Subsidized - Federal government pays interest while student is enrolled at least half-time and during 6 month grace period.

Unsubsidized - Borrower is responsible for all interest costs. Interest may be paid quarterly, annually or capitalized (applied to principal) during period of enrollment.

Standard Repayment
Payments begin 6 months after student withdraws, graduates or drops below half-time status. Minimum monthly payment is $50.00. The loan must be repaid within 10 years. Extended, graduated, or income-sensitive repayment options are available.

To compare the lenders/guarantors click on one of these links:

Preferred Lender
Hutchinson Campus Preferred Lender List
Willmar Campus Preferred Lender List

This ´preferred lender´ lists are in regard to Federal Family Loan Programs only! (For PLUS information see the PLUS ´preferred lender´ list in the PLUS Loan section below)

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Federal PLUS Loan

To see if you qualify for a Federal Plus Loan click here:
EAC Parent Plus Loan Pre-Approval Site
or here:
Great Lakes Parent PLUS Loan Pre-Approval Site

Eligible Borrower
Parent of a dependent student enrolled in post-secondary program on at least a half-time basis. School determines PLUS Loan eligibility. Borrower credit review required.

Interest Rate
Loans processed after July 1st, 2006 are a fixed rate of 8.5%

Loan Limit
No annual maximum. Parent may borrow up to full cost of students education less any other financial aid the student receives.

Interest Responsibility
Borrower is responsible for all interest costs.

Standard Repayment
Payments begin 30 to 60 days after full loan disbursement. (An In-School Deferment can be requested each year while the student is still attending, up to a maximum of 4 years.) Minimum monthly payment is $50.00. Loan must be repaid in 10 years.

Preferred Lender
Hutchinson Campus Plus Loan Lender Benefits
Willmar Campus Plus Loan Lender Benefits

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SELF Loan

Eligible Borrower
Student must be enrolled at least half-time in an eligible Minnesota school or be a Minnesota resident enrolled in an eligible school. The student must also have a credit worthy co-signer.

Interest Rate - variable
Approximately 7%

Loan Limits
Minimum - $500
Maximum: $7500 for grade levels 1 and 2.

Interest Responsibility
Borrower is responsible for all interest costs.

Interest must be paid quarterly while in school.

Standard Repayment
The standard plan requires the monthly payment of principal and interest starting on the 13th month after graduation or when enrollment drops below half-time.

Applications are available at the Financial Aid Office or online at SELF Loan.

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Federal Perkins Loan

Perkins Loan Information

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Alternative Loans

Ridgewater College recognizes that not all students will be able to meet the financial requirements of paying for an education on their own, even with the assistance of traditional financial aid resources. We cannot recommend a loan program or lender for you if you need to borrow additional funding, however, we can provide you with the information you will need to borrower wisely.

Each borrower's wants and needs are unique. You should evaluate each loan program to determine the best loan for you and your educational plans.

DO NOT BORROW MORE THAN YOU CAN AFFORD TO REPAY!

Tips on Private Loans

Do your homework before submitting an application. The interest rates are usually determined by the applicants and/or co-signers credit history or score. Be sure you ask what your interest rate is going to be, and if there are any upfront fees or fees added later when repayment starts. Be sure you also know the consequences of withdrawing from school early, making a late interest payment or making a late principal payment once you start repayment.

You should know at least the following about a loan program before completing an application:

• Interest rate and how it is calculated
• The amount of application or origination fees (upfront fees or repayment fees)
• When payments are required (interest and principal)
• If a cosigner is required

Here are a couple of good links:

FinAid: Private Student Loans

WASFAA: Private Loan Information

U.S. Department of Education: Student Aid on the Web

To check the current interest rates according to the Wall Street Journal, click here:

Wall Street Journal's Prime Rate Bank Survey

LIBOR: London Interbank Offered Rate

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Information to Help You Consolidate Your Federal Student Loans

There are lots of reasons why borrowers should consolidate their student loans. Unfortunately, the process of consolidating is sometimes more complicated than the decision to consolidate. As a result, some borrowers consolidate without taking full advantage of the benefits of consolidation, while others decide not to consolidate at all.

General consolidation information
Tips for in-school consolidation
Consolidation tools on line

FYI - YOU CAN NOT INCLUDE A MINNESOTA SELF LOAN IN THE CONSOLIDATION PROCESS.

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Great Lakes -
Educational Loan Services, Inc.

EAC -
Education Assistance Corporation