LOANS
Indebtedness can be a significant burden upon graduation, especially for those preparing to enter full-time vocational ministry. Students may apply for federal direct student loans to help cover the cost of education, though we still urge students to secure adequate funding through payment options other than loans. (Click here for aid options specific to each campus.)
If a loan becomes necessary, we believe students should have as much information as possible to make individual loan choices that are in their best interest. Many different types of student loans exist. Some of these loans are federal loans, meaning the rules and regulations are set by the federal government. The current rate through June 30 is 4.53%, however each year by July 1 a new rate is determined. This rate may be the same, higher, or lower than the prior year rate. The rate does cap at 6.8%.
Remember to borrow only what you need. A loan must be paid back.
The Federal Direct Loan application process works as follows:
- Complete the FAFSA
- Complete entrance counseling online at https://studentaid.gov/
- Complete the Master Promissory (MPN) at https://studentaid.gov/
- We originate your loan once you have completed entrance counseling and your MPN has been linked
Federal Direct Loans for Undergraduate Students
Federal Direct Loans are borrowed money that must be repaid. These low-interest loans are available to eligible dependent and independent undergraduate students enrolled for at least six credits per semester. You may qualify for either:
- A subsidized loan (based on financial need), where the federal government pays the interest while you are in school or in a period of deferment; or
- An unsubsidized loan, where you pay the interest after the loan is disbursed until you can repay the loan in full.
Stafford Loan Limits
If you are a dependent, undergraduate student, your loan limits for the academic year are:
| Subsidized Limit | Additional Unsubsidized Limit | |
|---|---|---|
| Freshman | $3,500 | $2,000 |
| Sophomore | $4,500 | $2,000 |
| Junior & Senior | $5,500 | $2,000 |
If you are an independent, undergraduate student or if you are a dependent, undergraduate student and your parent is not approved for a PLUS Loan, your loan limits for the academic year are:
| Subsidized Limit | Additional Unsubsidized Limit | |
|---|---|---|
| Freshman | $3,500 | $6,000 |
| Sophomore | $4,500 | $6,000 |
| Junior & Senior | $5,500 | $7,000 |
Parent Loan for Undergraduate Students (PLUS)
The Federal Direct PLUS Loan for parents is a government-backed loan with a fixed interest rate. Eligible parents may borrow up to the full annual cost of their child's education, minus other financial aid received. The PLUS Loan may be deferred, including interest, or may be prepaid at anytime, without any penalty. PLUS Loan credit requirements are typically more lenient than consumer credit requirements. In general, any resolved credit problems are disregarded. To apply for a Federal Direct PLUS Loan, please complete and submit a PLUS loan credit check and a Direct PLUS loan Master Promissory Note (MPN) at https://studentaid.gov/
If your parent is denied a PLUS Loan, you may be eligible to borrow additional unsubsidized Federal Direct Stafford Loan funds.
For detailed instructions on applying for the Federal Direct Parent PLUS loan, see https://studentaid.gov/.
Federal Direct Loans for Graduate Students
Federal Direct Unsubsidized Loans are borrowed money that must be repaid. These low-interest loans are available to eligible graduate students enrolled for at least 3 credits per semester. Graduate students may annually borrow up to $20,500 or cost of attendance, whichever is lower.
Direct Graduate PLUS Loans
The Federal Direct PLUS Loan for graduate and professional students (Grad PLUS Loan) can help you cover the full cost of your education, minus other aid received. The Grad PLUS Loan offers flexible credit requirements, a fixed interest rate set by the U.S. government and an easy application process. To apply for a Direct PLUS loan you must complete a PLUS credit check and a PLUS loan Master Promissory Note (MPN) at https://studentaid.gov/.
Alternative or Private Loans
Alternative or Private Loans are not federal student loans. They are consumer loans made available by lenders to assist college students when federal loans are not enough to cover their college expenses. The credit requirements vary by individual lender and most often require a creditworthy co-borrower. Students should always consider taking Federal Direct student loans first before considering any private student loans If you plan to borrower a Private loan, please be aware that you may need to complete a Self-Certification Form for your lender before your loan will be disbursed.
Criteria – Moody Bible Institute Office of Financial Aid seeks lenders that offer favorable loan products as determined through an annual review of the following:
- Loan Terms (e.g., interest rates, fees charged, and front or back end borrower benefits)
- Customer Service (e.g., timeliness of processing and disbursement, ease of application, web-based services)
- The availability of borrower benefits (e.g., rate reduction and/or consolidation options)
- Default Prevention (e.g., standards to help students maintain good account standing)
- Products available (e.g. loans for parents or others to take out on behalf of the students)
Lenders
| Lender Name | Website |
|---|---|
| Ascent Student Loans | https://ascentstudentloans.com/ |
| College Ave Student Loans | https://www.collegeavestudentloans.com/ |
| Sallie Mae | SallieMae.com |
Washington State Residents
For Washington State residents seeking information and resources about student loan repayment or seeking to submit a complaint relating to your student loans or student loan servicer, please visit www.wsac.wa.gov/loan-advocacy or contact the Student Loan Advocate at loanadvocate@wsac.wa.gov.