ArtCenter participates in the Federal Direct Loan Program.

Eligible students will receive notification of Federal Direct Stafford Loans on their award letter. Graduate students and parents of dependent students may wish to consider borrowing a Federal Direct PLUS Loan.


Federal Direct Loan Program

This program consists of low-interest subsidized and unsubsidized loans financed by the federal government.

Loans are available to undergraduate and graduate students who are U.S. citizens or eligible noncitizens.

All students applying for Federal Loans must have completed a Free Application for Federal Student Aid (FAFSA).

In addition, students must also complete a Master Promissory Note and Loan Entrance Counseling. Applicants must be enrolled at least half-time.

Loan repayment begins six months after graduation, or when enrollment drops below half-time.

Students who leave school or drop below half-time must complete Loan Exit Counseling.

View a sample repayment plan schedule.

For more information about the Federal Direct Loan Program please visit: studentloans.gov.


Federal Direct Subsidized Loans

Funded by the federal government, Federal Subsidized Loans award $3,500 per academic year to first-year undergraduate students; $4,500 to second-year undergraduate students; $5,500 per academic year for years three through five.  The Direct Subsidized Loan is based on financial need for which the federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status. For Direct Subsidized Loans first disbursed between July 1, 2012, and July 1, 2014, the borrower will be responsible for paying any interest that accrues during the grace period. If the interest is not paid during the grace period, the interest will be added to the loan’s principal balance.  The most current information can be found at the Federal Student Aid’s website.

The total amount of Federal Subsidized Loan an undergraduate student may have outstanding is $23,000. More information on Federal Direct Loans can be found at the Federal Student Aid’s website.

Interest Rate*

For undergraduate students with loans first disbursed between July 1, 2016 – June 30, 2017, the interest is fixed at 3.76%.

Origination Fee*

An Origination Fee will be deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you receive.

  • For loans first disbursed between October 1, 2015 – September 30, 2016, the Origination Fee is 1.068%.

  • For loans first disbursed between October 1, 2016 – September 30, 2017, the Origination Fee will be 1.069%

Interest rates and fees are subject to change annually or as mandated by Congress.

Receiving Your Loan

Generally, your loan will cover two terms and will be disbursed (paid out) in at least two payments called disbursements. Loan funds are applied to your student account. If financial aid funds applied to your account for the semester create a credit balance, a refund will be issued by ArtCenter to the student or parent if requested on a PLUS Loan application.

Can I cancel my loan?

You have a right to cancel all or a portion of a loan disbursement within 120 days of the date your school disbursed your loan money (by crediting the loan money to your school, by paying it directly to you, or both). If you choose to cancel, the money you received will have to be returned, but no interest or fees will be charged. If you cancel your loan after funds have been applied to your account, you may owe a balance to ArtCenter.

Repayment

You don’t have to begin repaying most federal student loans until after you leave college or drop below half-time enrollment. However, PLUS loans enter repayment once your loan is fully disbursed (paid out). After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date. Payments are usually due monthly. Learn more about repaying your loan.

What’s a grace period?

The grace period is a set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan. The grace period gives you time to get financially settled and to select your repayment plan. Not all federal student loans have a grace period. Note that for most loans, interest will accrue during your grace period.

  • Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, and Unsubsidized Federal Stafford Loans have a six-month grace period before payments are due.
  • PLUS loans have no grace period. They enter repayment once they are fully disbursed but may be eligible for a deferment. Contact your loan servicer for more information.

Loan Forgiveness

There are some circumstances that may result in your no longer having to repay your federal student loan. For instance, some or all of your loan could be forgiven in exchange for your performing certain types of service such as teaching or public service. Or the obligation to make further payments on your loan might be discharged based on specific factors such as your school closing or your becoming totally and permanently disabled. Take a look at all the possibilities: Find out what circumstances qualify your loans for forgiveness, cancellation, or discharge. For more information please refer to the Department of Education

Is there a time limit on how long I can receive loans?

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.  More information can be found at the Federal Student Aid’s website.


Federal Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.

You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

For independent students, annual loan limits are $6,000 per academic year for undergraduates in years one and two, and $7,000 per academic year for years three through five, with a total aggregate limit of $57,500, including any Federal Subsidized Loans.

Dependent students are eligible for $2,000 per academic year. The aggregate limit is $31,000, including any subsidized loan received. Additional unsubsidized loans are also available to dependent students who do not qualify for a full Federal Subsidized Loan.

Graduate students may borrow up to $20,500 per academic year, with an aggregate limit of $138,500, including any undergraduate Federal Stafford Loans.

You must repay interest that accumulates during school, but it can be deferred and added to your principal balance.

Undergraduate Student:

Interest Rate*

  • For undergraduate students with loans first disbursed between July 1, 2016 – June 30, 2017, the interest is fixed at 3.76%.
  • For undergraduate students with loans first disbursed between July 1, 2015 – June 30, 2016, the interest is fixed at 4.29%.

Origination Fee*

An Origination Fee will be deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you receive.

For loans first disbursed between October 1, 2016 – September 30, 2017, the Origination Fee is 1.069%

For loans first disbursed between October 1, 2015 – September 30, 2016, the Origination Fee is 1.068%.

Graduate Student:

Interest Rate*

  • For graduate students with loans first disbursed between July 1, 2016 – June 30, 2017, the interest is fixed at 5.31%.
  • For graduate students with loans first disbursed between July 1, 2015 – June 30, 2016, the interest is fixed at 5.84%.

Origination Fee*

An Origination Fee will be deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you receive.

For loans first disbursed between October 1, 2015 – September 30, 2016, the Origination Fee is 1.068%.

  • For loans first disbursed between October 1, 2016 – September 30, 2017, the Origination Fee will be 1.069%
  • * Origination fees and interest rates are subject to change each July 1 or as mandated by Congress.

Receiving Your Loan

Generally, your loan will cover two terms and will be disbursed (paid out) in at least two payments called disbursements. Loan funds are applied to your student account. If financial aid funds applied to your account for the semester create a credit balance, a refund will be issued by ArtCenter to the student or parent if requested on a PLUS Loan application.

Can I cancel my loan?

You have a right to cancel all or a portion of a loan disbursement within 120 days of the date your school disbursed your loan money (by crediting the loan money to your school, by paying it directly to you, or both). If you choose to cancel, the money you received will have to be returned, but no interest or fees will be charged. If you cancel your loan after funds have been applied to your account, you may owe a balance to ArtCenter.

Repayment

You don’t have to begin repaying most federal student loans until after you leave college or drop below half-time enrollment. However, PLUS loans enter repayment once your loan is fully disbursed (paid out). After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date. Payments are usually due monthly. Learn more about repaying your loan.

What’s a grace period?

The grace period is a set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan. The grace period gives you time to get financially settled and to select your repayment plan. Not all federal student loans have a grace period. Note that for most loans, interest will accrue during your grace period.

Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, and Unsubsidized Federal Stafford Loans have a six-month grace period before payments are due.

PLUS loans have no grace period. They enter repayment once they are fully disbursed but may be eligible for a deferment. Contact your loan servicer for more information.

Loan Forgiveness

There are some circumstances that may result in your no longer having to repay your federal student loan. For instance, some or all of your loan could be forgiven in exchange for your performing certain types of service such as teaching or public service. Or the obligation to make further payments on your loan might be discharged based on specific factors such as your school closing or your becoming totally and permanently disabled. Take a look at all the possibilities: Find out what circumstances qualify your loans for forgiveness, cancellation, or discharge. For more information please refer to the Department of Education https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation.

Is there a time limit on how long I can receive loans?

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog. For more information visit https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized#eligibility-time-limit

Direct Loan Annual Limits

Basic Subsidized:

  • Freshmen: $3,500
  • Sophomores: $4,500
  • Juniors/Seniors: $5,500

Unsubsidized:

  • Dependent Students, All levels: $2,000

Additional Unsubsidized:

Independent students and Dependents whose parents cannot borrow a PLUS Loan:

  • Freshmen: $6,500
  • Sophomores: $6,000
  • Juniors/Seniors: $7,000
  • Graduates (beyond bachelor’s degree): $20,500


Federal Direct Graduate PLUS Loans

These loans are available to graduate students who are enrolled at least half time. Students must complete a Free Application for Federal Student Aid (FAFSA) and have no adverse credit history.  The borrower may request an amount up to the cost of attendance minus other financial aid.  Students should borrow their maximum unsubsidized Stafford eligibility before borrowing a PLUS loan.  For more information visit:  https://studentaid.ed.gov/sa/types/loans/plus#steps-to-receive

If you are eligible for a Direct PLUS Loan, you will be required to sign a Direct PLUS Loan Master Promissory Note (MPN), agreeing to the terms of the loan at https://studentloans.gov.

Graduate or professional students who haven't previously received a PLUS loan will also be required to complete Entrance Counseling.

Both the MPN and the Entrance Counseling may be completed at https://studentloans.gov

Interest Rate*

  • For PLUS loans first disbursed between July 1, 2016 – June 30, 2017, the interest is fixed at 6.31%. 
  • For PLUS loans first disbursed between July 1, 2015 – June 30, 2016, the interest is fixed at 6.84%.

Origination Fee*

An Origination Fee will be deducted proportionately from each loan disbursement you receive.  This means the money you receive will be less than the amount you actually borrow.  You’re responsible for repaying the entire amount you borrowed and not just the amount you receive.

  • For loans first disbursed between October 1, 2016 – September 30, 2017, the Origination Fee is 4.276%
  • For loans first disbursed between October 1, 2015 – September 30, 2016, the Origination Fee is 4.272%.

Receiving Your Loan

Generally, your loan will cover two terms and will be disbursed (paid out) in at least two payments called disbursements. Loan funds are applied to your student account. If financial aid funds applied to your account for the semester create a credit balance, a refund will be issued by ArtCenter to the student.

Can I cancel my loan?

You have a right to cancel all or a portion of a loan disbursement within 120 days of the date your school disbursed your loan money (by crediting the loan money to your school, by paying it directly to you, or both). If you choose to cancel, the money you received will have to be returned, but no interest or fees will be charged. If you cancel your loan after funds have been applied to your account, you may owe a balance to ArtCenter.

Repayment

If you receive a Direct PLUS Loan as a graduate or professional student, you don't have to make any payments while you're enrolled in school at least half-time, and for an additional six months after you graduate, leave school, or drop below half-time enrollment.  However, during any period when you're not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

Repayment Plans

There are several repayment options available that are designed to meet the individual needs of borrowers. Your loan servicer can help you understand which repayment options are available to you. Generally, you'll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn about your repayment options.

What If I Have Difficulty Paying?

If you are unable to make your scheduled loan payments, contact your loan servicer immediately. Your servicer can help you understand your options for keeping your loan in good standing. For example, you may wish to change your repayment plan to lower your monthly payment or request a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan. Learn more about deferment or forbearance options.

Loan Forgiveness

There are some circumstances that may result in your no longer having to repay your federal student loan. For instance, some or all of your loan could be forgiven in exchange for your performing certain types of service such as teaching or public service. Or the obligation to make further payments on your loan might be discharged based on specific factors such as your school closing or your becoming totally and permanently disabled. Take a look at all the possibilities: Find out what circumstances qualify your loans for forgiveness, cancellation, or discharge. For more information please refer to the Department of Education https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation


Federal Direct Parent PLUS Loans

These loans are available to parents of dependent students and designed to help meet the cost of education. Students must complete a Free Application for Federal Student Aid (FAFSA) and be enrolled at least half time. Demonstrated financial need is not a determining factor in receiving a PLUS Loan; however, the parent must undergo a credit check and have no adverse credit history. Parents may be eligible to borrow up to the student cost of attendance less any other financial aid received.

If you are eligible for a Direct PLUS Loan, you will be required to sign a Direct PLUS Loan Master Promissory Note (MPN) at https://studentloans.gov

Interest Rate*

  • For PLUS loans first disbursed between July 1, 2016 – June 30, 2017, the interest is fixed at 6.31%.
  • For PLUS loans first disbursed between July 1, 2015 – June 30, 2016, the interest is fixed at 6.84%.

Origination Fee*

An Origination Fee will be deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you receive.

    • For loans first disbursed between October 1, 2016 – September 30, 2017, the Origination Fee is 4.276%
    • For loans first disbursed between October 1, 2015 – September 30, 2016, the Origination Fee is 4.272%.

* Origination fees and interest rates are subject to change each July 1 or as mandated by Congress.

Receiving Your Loan

Generally, your loan will cover two terms and will be disbursed (paid out) in at least two payments called disbursements. Loan funds are applied to your student account. If financial aid funds applied to your account for the semester create a credit balance, a refund will be issued by ArtCenter to the student or parent if requested on a PLUS Loan application.

Can I cancel my loan?

You have a right to cancel all or a portion of a loan disbursement within 120 days of the date your school disbursed your loan money (by crediting the loan money to your school, by paying it directly to you, or both). If you choose to cancel, the money you received will have to be returned, but no interest or fees will be charged. If you cancel your loan after funds have been applied to your account, you may owe a balance to ArtCenter.

Repayment

If you are a parent borrower, you’ll generally be expected to start making payments on your Direct PLUS Loan once your loan is fully disbursed (paid out). However, you may request a deferment while your child is enrolled at least half-time and for an additional six months after your child graduates, leaves school, or drops below half-time enrollment. You don't have to make any payments while your loan is deferred. You’ll have the option of requesting a deferment as part of the loan request process at https://studentloans.gov. You can also contact your servicer to request a deferment. During any period when you're not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

Repayment Plans

There are several repayment options available that are designed to meet the individual needs of borrowers. Some repayment plans are not available to parent PLUS borrowers. Your loan servicer can help you understand which repayment options are available to you. Generally, you'll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn about your repayment options.

What if I have trouble repaying my loan?

If you are unable to make your scheduled loan payments, contact your loan servicer immediately. Your servicer can help you understand your options for keeping your loan in good standing. For example, you may wish to change your repayment plan to lower your monthly payment or request a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan. Learn more about deferment or forbearance options.

Loan Forgiveness

There are some circumstances that may result in your no longer having to repay your federal student loan. For instance, some or all of your loan could be forgiven in exchange for your performing certain types of service such as teaching or public service. Or the obligation to make further payments on your loan might be discharged based on specific factors such as your school closing or your becoming totally and permanently disabled. Take a look at all the possibilities: Find out what circumstances qualify your loans for forgiveness, cancellation, or discharge. For more information please refer to the Department of Education https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation


Alternative Loan Programs

For students who have received the maximum award amounts under the Federal Family Education Loan Program and require additional funding, other loans are available. Students may request up to the estimated cost of education minus other financial aid received.

These loans are sponsored by banks and private lending institutions. Loan approval is based on the borrower’s creditworthiness and ability to pay the loan rather than calculated need.

Often a co-borrower is required as a co-signer. Interest rates and repayment schedules may vary.

Most lenders offer only variable-rate options with no rate cap. The borrower may pay interest monthly while the student is in school (up to four years).

Some lenders now require interest payments while student is in school. Most lenders require repayment of principal and interest within six months of the student's separation from school.

The term of the loan is up to 25 years from the time principal repayment begins. Guarantee fees of up to six percent of the loan are added directly to the total loan amount. The interest rate varies among lenders.

Students may compare loan programs at Fast Choice.


Consumer Loan Disclosure Notice

In compliance with federal regulations under HEOA Sec. 489 amended Sec. 485B (d) (4) (20 U.S.C. 1092b) the college is required to notify you that approved loans will be submitted to the National Student Loan Data System (NSLDS) by the U. S. Department of Education and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system as determined by the U.S. Department of Education.