Loans

Student Loans

The Federal William D. Ford Direct Loan Program is designed to help you pay for your educational expenses. Loans should be considered only after you explore all other sources of financial aid.

Oak Point University participates in the Federal William D. Ford Direct Loan Program, so eligible students and parents borrow directly from the U.S. Department of Education. These loans are repaid directly to the U.S. Department of Education.

The Federal Direct Loan Program at Oak Point

  • Students who are accepting the Federal Direct Loans at Oak Point for the first time will have to complete a Master Promissory Note (MPN) and an Entrance Counseling with the Department of Education. Once completed, the school will proceed to certify eligible loans.
  • Students must maintain an enrollment of half-time (6 credit hours) or more per semester to receive undergraduate loans. Enrollment status of half-time is also required to avoid starting the repayment process which includes a 6 month grace period. A graduate student must maintain an enrollment of 3 credit hours or more per semester to keep their eligibility and avoid starting the repayment process. When an enrollment status is less than the required credit hours or 30 days before the student is scheduled to graduate, the Exit Counseling with the Department of Education.

Types of Federal Loans

Undergraduates Only

Federal Direct Subsidized Loan

The subsidized loan program is a need-based program. The amount the student is able to borrow for the academic year depends on their financial need minus any accepted need-based awards and scholarships that are accepted by the student. The government pays the interest on the loan while the student is attending school and during any approved deferment period. Graduate students are not eligible for the subsidized loan program.

Federal Direct Unsubsidized Loan

The unsubsidized loan program is not need-based but combined with the other accepted financial aid awards and scholarships cannot be more than the student’s cost of attendance. The student is responsible for the interest on an unsubsidized loan. The student has the option of paying the interest on the loan while attending school or letting it accumulate and be added to the principal amount of the loan.

Federal Direct Plus Loan

The PLUS loan is money a parent borrows to assist their dependent student with their educational expenses, or a graduate student borrows to assist with their educational expenses. This loan is not need-based but is combined with the other accepted financial aid awards and scholarships and cannot be more than the student’s cost of attendance. The parent’s or graduate student’s credit history will be checked.

Information About Private Loans

Students can also apply for private loans, but Federal loans should be considered first. Federal loans carry a lower fixed interest rate than most private loans and are guaranteed by the government.

The interest rate on an alternative loan varies, as does the repayment period. Applying for this loan type requires a different application than the application for a Federal loan. Most lenders will check the student’s credit history and may ask for a co-signer. The interest rate on the loan may depend on the student’s and the cosigner’s credit history. The student’s required enrollment status varies per loan specifications. It is the student’s choice of the lender they use for the loan. ELMSelect is a free resource that offers information on private student loan lenders.

A private loan is not based on need, but when combined with other accepted financial aid awards and scholarships, it cannot be more than the student’s cost of attendance.

Financing Your Education with Oak Point