Student Lending Options

Graduate students who are registered for 5 or more credits per semester are eligible to apply for the following federal loans:

Federal Direct Unsubsidized Stafford Student Loan

The Federal Direct Unsubsidized Stafford Student Loan is for students who are US citizens/permanent residents and does not require a credit check. Details on this loan:

• The interest rate on an Unsubsidized Stafford Loan for the 2023-2024 academic year is fixed and will be set July 1st, 2023.
  
• For loans disbursed between before October 1, 2020, the origination fee* is 1.059%
• Interest begins to accrue after the first disbursement and can either be paid quarterly or can be capitalized meaning the interest would be added to the loan amount borrowed.
• Standard repayment begins six months after graduation (or dropping below half time enrollment) and continues for up to ten years, although there are extended repayment plays (up to 25 years) available.
• There are no penalties or fees if you prepay your loan in part or in full.

  As with all Federal loan programs, this loan has an origination fee. This fee is charged by the government and is reduced from the loan before the funds are sent to Simmons.

  To apply for this loan

• Recipients are required to sign a Master Promissory Note (MPN) prior to the Stafford Loan being disbursed each semester.
• In addition, you will need to complete Direct Subsidized/Unsubsidized Loan Entrance Counseling before loan funds can be credited to your account.

Failure to sign both the MPN and Entrance Counseling will result in cancellation of the loan.

Graduate Direct PLUS Loan

The Graduate PLUS Loan is a federally funded loan that enables graduate students to borrow up to the full cost of attendance less any other financial aid received. Here are details about this loan program:

• The interest rate on a PLUS loan for the 2023-2024 academic year is fixed and will be set July 1st 2023.
  
• For loans disbursed after October 1, 2020, the origination fee* is 4.228%
• Disbursements are made in equal installments over the semesters within an academic year
• Interest accrues after the first disbursement, but the first payment is not due until approximately 60 days after the loan fully disburses
• The standard repayment period is ten years, although there are extended and graduated plans available
• The principal payment may be deferred for up to 4 years while the student is enrolled on at least a half- time basis. Interest will accrue during deferment and can be paid quarterly or capitalized
• Loans will not be certified for a partial period of enrollment (i.e., a single semester) unless it is the student's final period of enrollment for that academic year
• The credit check used to approve the loan is valid for 180 days. Please do not apply for your loan more than 90 days before the start of your intended loan period

  To apply for the PLUS Loan

• Please go to the Direct Loan website and follow the steps outlined there. If you need assistance determining the amount to request for the PLUS Loan that would incorporate the origination fee*, please contact your assigned financial aid counselor.

If you are denied a PLUS Loan you will have these options:

1. You can contest the credit decision on your PLUS Loan application by appealing directly to the Direct Loan program. More information is available by logging into the Direct Loan website or by calling Applicant Services at 800.557.7394 (8 AM- 8 PM ET, Mon-Fri).
2. You can choose to add an endorser to your PLUS Loan application in order to get credit approved. To add an endorser, you and your endorser should submit the additional information via the Direct Loan website. For assistance, please contact Applicant Services at 800.577.7394 (8 AM- 8 PM ET, Mon-Fri).

• *The origination fee is a processing fee assessed by the government and reduced from the loan before the funds are sent to Simmons. Please be sure to increase the amount you apply for by the origination fee so that the amount disbursed will account for the fee and still cover your costs.

   

  Canceling Your Federal Student Loan

  • Direct Loan funds that are returned within 120 days of the disbursement by the school or the borrower, for any reason, are treated as a partial or full cancellation, with the appropriate adjustment of the loan fee and interest.
  • If the loan has not yet disbursed to your student account: fill out the Loan Adjustment Request form on our website
  • If the loan has already disbursed to your student account and it is within 120 days since your loan disbursed:
  • If you did not receive a refund from the disbursement, fill out the Loan Adjustment Request form on our website
  • If you did receive a refund from the disbursement, then you are responsible for returning the money directly to your loan servicer
  • Contact the Federal Direct Loan Servicing Center at 1-800-848-0979
  • Always use the term "cancellation" or "cancel." to ensure that the interest and fees are removed as well

Private, Credit-Based Loans

This loan, called an alternative loan, is available through lending agencies such as banks or credit unions. Most of these loans carry a variable interest rate, but there are a few that offer fixed interest rates. While Simmons cannot recommend any particular lender or group of lenders to its students, we do strongly recommend that you compare rates carefully and know what their monthly repayment schedule will be. Elmselect.com is a resource available to begin your research.

When researching your options, contact the lender directly. They will be able to answer questions you may have on the terms and conditions of the loan(s). However, make sure that you do not apply for your loan until you are ready! Each time you apply for a loan, your credit is checked. If the lender is not able to provide an estimated interest rate without processing your credit, please make sure that you've narrowed down your loan options to as few as possible before allowing them to run your credit!

Once you have decided which loan you would like to use, please submit your application directly to your chosen lender. After you are approved, the lending agency will electronically notify Simmons of your approval and request the loan's certification. It generally takes about a week, but once Simmons has certified the loan you will be able to see it pending on your next award letter and bill.

Financial Aid and Credit Balance Refunds

Students will automatically receive a refund for any excess funds (credit balance) on their student account each semester. Simmons University will not hold credit balances to be applied to subsequent semesters. Refunds are processed by Student Financial Services 7-10 business days after the completion of the add/drop period each semester, approximately two to three weeks into the semester, following verification of student enrollment.

Since refunds are not immediately available at the beginning of each semester, students must ensure they have sufficient funds to meet living expenses, including rent for the first two months of each term (for students living off- campus), books, supplies, and personal expenses until refunds become available.

All refunds, regardless of the source, are first applied to any credit card payment(s) that were made toward the student's account during the current fiscal year (July 1—June 30). For instructions on how to set up direct deposit for your refund, please see the section on our website titled "Direct Deposit Student FAQ". If direct deposit is not setup, a refund check will be mailed to the student's home address on file in AARC. Please ensure that your address in AARC is current at all times.

Financial Aid and Withdrawals/Leaves

Return of Title IV Aid

When federal Title IV grant or loan assistance is disbursed, but the recipient does not complete the enrollment period, the law requires that Simmons University calculate the amount that must be returned by the school and/or student to Title IV program accounts.

The date the student initiates the withdrawal is used for calculating the percentage used in the formula for Return of Title IV funds. Students are required to initiate their withdrawal by completing the electronic wufoo form. The data from this form is sent to all of the appropriate offices on campus that play a part in processing a student’s withdrawal. The date the student files the form is used as the date of the withdrawal as it serves as the date the student notified the institution of their intent to withdraw. In addition, the Registrar’s Office sends a weekly report of all leaves and withdrawals and this report captures any withdrawals by a student who did not complete the wufoo form but was determined to no longer be enrolled (in these cases the withdrawal date is the date the institution became aware the student was no longer enrolled).The number of days from the 1st class day to the withdrawal date divided by the number of days in the payment period (semester) equals the percentage of Title IV funds earned. If the withdrawal date is after the 60% point of the semester, the student has earned 100% of the Title IV funds.

If the total amount of Title IV grant and/or loan assistance that the student earned is less than the amount disbursed to or on behalf of the student, the difference between these amounts must be returned to the Title IV programs in the following order of priority (not to exceed the amount originally disbursed):

1. Unsubsidized Stafford Loans
2. Subsidized Stafford Loans
3. Direct PLUS Loans
4. Federal Pell Grant
5. Federal SEOG Grant
6. Iraq Afghanistan Service Grant

The school and the student share the responsibility for returning Title IV aid. The school returns "unearned" Title IV funds that have been paid to the school to cover the student's institutional charges received from Title IV grant and/or loan programs.

The school must return Title IV funds due to the federal programs no later than 30 days after the date the school determines the student withdrew.

If the student owes funds back to the Title IV programs, the institution will advise the student within 45 days of determining that the student withdrew. The student has 45 days from the date of notification from the institution to take action on the over payment. If the student's portion of unearned Title IV funds included a federal grant, the student has to pay no more than 50% of the initial amount that the student is responsible for returning. Immediate repayment of the unearned loan amount is not required because the student repays the loan to the lender according to the terms or conditions in the promissory note. The institution will advise the lender of the student's withdrawal within 45 days of determining the student withdrew.

No additional disbursements may be made to the student for the enrollment period. If the student does not repay the amount owed to the Title IV programs or does not make satisfactory payment arrangements with the U.S. Department of Education, Simmons University will report to the National Student Loan Data System (NSLDS) that the student received an over payment. The student loses eligibility for further Title IV aid until resolved.