Types of Loans
Loans are the elements of a financial aid package that must be repaid. Some loans are offered by the Federal government, others come from private sources. All Federal Loans require the completion of the Free Application for Federal Student Aid. Each loan program is described below.
Federal Direct Subsidized Loan
Eligibility for the Federal Direct Subsidized Loan is based on financial need. Interest on the loan is paid by the Federal Government as long as the student is enrolled at least half-time (6 credit hours) during the term. The subsidized loan offers a 6 month grace period, before repayment on the loan is expected. The interest rate is determined each year by Federal guidelines. For 2015-16 the Federal Subsidized Direct Loan interest rate is 4.29%. From October 2014-October 2015 a loan fee of 1.073% will be assessed by the Department of Education before disbursement. After October 1, 2015 the loan fee is 1.068%.
Federal Direct Unsubsidized Loan
Eligibility for the Federal Direct Unsubsidized Loan is not based on financial need. The interest accrues on this loan while the student is still enrolled. The student may pay this interest while in school, or they can allow it to accrue and capitalize. Repayment begins six months after the student graduates or ceases to be enrolled at least half-time (6 credit hours) during the term. The interest rate is determined each year by Federal guidelines. For 2015-16 the Federal Unsubsidized Direct Loan interest rate is 4.29%. From October 2014-October 2015 a loan fee of 1.073% will be assessed by the Department of Education before disbursement. After October 1, 2015 the loan fee is 1.068%.
Federal Perkins Loans
The Federal Perkins Loan is based on financial need. Interest on the loan is paid by the Federal Government as long as the student is enrolled at least half-time (6 credit hours) during the term. The Perkins Loan offers a 9 month grace period, before repayment on the loan is expected. The interest rate is 5% fixed. If you have been offered a Federal Perkins Loan on your financial aid award letter, please be sure to complete your master promissory note. Millikin's Perkins Loan is processed by our loan servicer Educational Computer Systems, Inc. (ECSI).
Parent Loans for Undergraduate Students (PLUS)
This federal loan program allows parents to borrow on behalf of their dependent student who is attending at least half-time (6 credit hours). The annual limit for this loan is determined by subtracting the total financial aid received from the student's total cost of attendance. The loan requires successful completion of a credit check. For 2015-16 the interest rate is 6.84%. The Dept of Ed will assess a fee of 4.292% for disbursements before October 1, 2015 and 4.272% after October 1, 2015. Parents can apply online at www.studentloans.gov. Repayment begins 60 days after the loan is fully disbursed. The PLUS loan can be deferred until the student graduates or ceases to be enrolled. The deferment option can be requested through the loan servicer. If a parent is not approved for the PLUS Loan, we will offer up to $4000 additional for Freshmen and Sophomores and up to $5000 additional to Juniors and Seniors, in the Unsubsidized Direct Loan. The parent will receive an immediate response on his/her PLUS Loan and Millikin will be notified electronically.
The private/alternative loans are commercial educational loans that may be used to close the gap between your financial aid and cost of attendance. Interest rates will vary from lender to lender. You can view our historical lender list on our loan program page. You are not limited to the lenders listed. There are many alternative loan options in the lending community. Personal research is up to each individual or family, as Millikin cannot advise on these products.
Possible lenders (listed alphabetical order)
- Anheuser-Busch Credit Union
- Citizens Bank - TruFit Student Loan
- cuStudentLoans - cuScholar Private Student Loan
- Discover Student Loans
- Interra Credit Union
- Iowa Student Loan
- Northwest Federal Credit Union
- PNC Bank
- Regions Bank - Smart Option Loan
- Sallie Mae
- Student Loan Finance - iHelp Loan
- Sun Trust Bank
- University of Illinois Employees Credit Union
- Wells Fargo
Graduate Student Loans
Federal Direct Unsubsidized Direct Loan for Graduate Students: Graduate students must file the FAFSA each year to be considered for the Unsubsidized Direct Loan. The student must maintain at least half time (6 credits) enrollment. First time borrowers, be sure to complete the loan entrance counseling and the master promissory note at www.studentloans.gov.
Federal Direct Graduate PLUS Loan
The Federal Direct Graduate PLUS loan interest rate is 6.84% in 2015-16 and repayment begins 60 days after full disbursement, however, the student can request a deferment. Origination fee assessed on all loans 4.292% until September 30, 2015 and 2.272% on or after October 1, 2015. You will need to complete the FAFSA to be eligible. To apply go to www.studentloans.gov. First time borrowers - complete your MPN - Master Promissory note at www.studentloans.gov.
Maximum annual loan limits
Maximum annual limits for undergraduate and graduate students are monitored by the college based on federal regulations.
Maximum for Subsidized Loans
|Total Subsidized and/or Unsubsidized|
|Third Year and higher||$5,500||$7,500|
|Third Year and higher||$5,500||$12,500|
|Graduate and Professional Students||$20,500|
Steps to Complete for Loan Disbursement
New students or first-time borrowers
You must complete all 3 steps for your loan to disburse:
- Log on to MU Online to accept your loans.
- Sign in at www.studentloans.gov and complete the Direct Loan Master Promissory note. You will also need your FSA ID in order to sign in at the Dept. of Ed. sites. Get your FSA ID now.
- Complete the Loan Entrance Counseling at www.studentloans.gov
If you had a Federal Direct Loan last year, simply accept your loan(s) on MU Online. Your Master Promissory Note (MPN) and Entrance Counseling are on file.
Federal Direct Subsidized/Unsubsidized Loan(s)
In accordance with Federal regulations, when a student ceases enrollment at least half-time or graduates, the institution is required to provide Direct Loan Exit Counseling.
You can complete your exit counseling at studentloans.gov. You will need to create a FSA ID to log in fsaid.ed.gov. You will see the amounts of your loans listed and go through helpful information on loan repayment, including who you owe, when you owe and a monthly expense estimate to help you with budgeting. Learn how to avoid default and what to do if you are having trouble making payments.
If you had a Perkins Loan while at Millikin, our Perkins Loan Servicer will be contacting you to complete the Perkins Loan EXIT Counseling. Our servicer is Heartland ECSI. Your Perkins Loan goes into repayment 9 months after you graduate or cease enrollment at least half time (6 credits). Please watch for correspondence from ECSI and keep track of all of your loans.
If you have any questions, email Nancy Askins.