Loans

Loans

Grinnell awards educational loans primarily from the federal loan programs. These programs provide students and their parents with long-term, low-interest loans. Remember, a loan must be repaid.

Federal Perkins Loan

  • Long-term loan awarded to students who show exceptional financial need
  • Subject to limited annual funding
  • Awarded by the college
  • Interest rate is 5 percent
  • Loan amounts up to $5,500 per academic year
  • Repayment and interest accrual begin nine months after last half-time enrollment for new borrowers
  • Repayment made to Grinnell College through our servicer University Accounting Services (UAS). Contact the Grinnell College Office of the Cashier if you are ready to begin or are currently in repayment.

Federal Subsidized Direct/Stafford Student Loan

  • Need-based long-term loan
  • Requires a Grinnell College Loan Request Form and a Master Promissory Note
  • Annual limits of $3500-$5500 depending on grade level
  • Loans disbursed after July 1, 2006 have a fixed interest rate of 6.8%
  • Loans disbursed after July 1, 2008 have a fixed interest rate of 6.0%
  • Loans disbursed after July 1, 2009 have a fixed interest rate of 5.6%
  • Loans disbursed after July 1, 2010 have a fixed interest rate of 4.5%
  • Loans disbursed after July 1, 2011 have a fixed interest rate of 3.4%
  • Default fee of 1%.
  • *For subsidized loans disbursed prior to July 1, 2012, repayment and interest accrual begin six months after last half-time enrollment.  This is known as the grace period.

*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

Federal Unsubsidized Direct/Stafford Student Loan

  • Non-need-based long-term loan
  • Requires a Grinnell College Loan Request Form and a Master Promissory Note
  • Annual limits of $5500-$7500 (less any subsidized amounts received for the same period) depending on grade level and dependency status
  • Fixed interest rate of 6.8% for loans disbursed after July 1, 2006
  • Default fee of 1%. Currently the Department of Education is giving an interest rebate of .5%, making the net default fee .5%. The rebate is scheduled to end July 1, 2012.
  • The borrower is responsible for accrued interest during in-school and deferment periods

Federal Plus Loan

  • Non-need-based long-term loan for parent borrowers
  • Requires a Grinnell College Loan Request Form and a Master Promissory Note
  • Must be certified by the school
  • Maximum amount is the cost of education minus other aid
  • Interest rate is 7.9 percent and interest accrual begins at disbursement
  • Fee of 4%. Currently the Department of Education is giving an interest rebate of 1.5%, making the net fee 2.5%. The rebate is scheduled to end July 1, 2012.
  • Repayment begins 60 days after disbursement with deferment of principal possible

Grinnell College Loan

  • Long-term, low-interest institutional loan based on financial need
  • Repayment begins six months after the student leaves Grinnell College
  • Ranges from $200 to $4,000 per academic year

Private Loan

  • Long-term private loan used to replace expected family contribution
  • Contact the Office of Student Financial Aid for more information
  • Maximum amount per academic year is cost of attendence minus other aid