Student Loans

Loans are borrowed money that must be repaid with interest. Repayment of loans does not begin until a student graduates, withdraws from school, or ceases to maintain enrollment on at least a half-time basis. Students are informed in their financial aid award letter of the Direct Loans they have been offered. If students require additional aid, they can apply for either a Direct Graduate PLUS Loan or Alternative (Private) Loan.

Both the Direct Loans and Direct Graduate PLUS Loans are offered with an upfront fee rebate, reducing the amount in loan fees paid at origination. Students must make the first 12 monthly payments on-time; otherwise the rebate amount will be added to the principal balance.

Direct Loans

Direct Loans are federal student loans awarded to students who have completed the 2010-2011 FAFSA and met all financial aid eligibility requirements. In addition to the Adler School's general financial aid eligibility requirements, students who wish to receive federal financial assistance must also meet the following requirements:

• Be a U.S. citizen or permanent resident.
• Not be in default on any previously awarded federal loan.

Direct Loans disbursed during the 2010-2011 academic year have a fixed interest rate of 6.8%, with a 0.5% origination fee (after the loan fee rebate). Repayment begins 180 days (six months) after the last term a student is enrolled at least half-time.

There are two types of Direct Loans: subsidized and unsubsidized.

• Subsidized Direct Loans are need-based loans. While a student is enrolled at least half-time in an academic institution or during any other period of loan deferment, all interest on subsidized loans is paid by the federal government. Interest on the loan only begins to accrue after the student has graduated, withdrawn, or dropped below half-time enrollment.

The maximum amount per academic year that any student can be awarded in Direct Subsidized loans is $8,500.

• Unsubsidized Direct Loans are available to all students who meet financial aid eligibility requirements, regardless of financial need. Interest begins to accrue on unsubsidized loans immediately upon disbursement.

Limits for Direct Loans 

Direct Graduate PLUS Loans

Direct Graduate PLUS Loans are another federal unsubsidized loan program available to students who need additional aid after accepting their Direct Loans.

Direct Graduate PLUS Loans disbursed during the 2010-2011 academic year have a fixed interest rate of 7.9%, with a 2.5% origination fee (after the loan fee rebate). Repayment begins after the last term a student is enrolled at least half-time.

Direct Graduate PLUS Loans require credit approval. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding 6 months (credit approval is valid for 6 months). If you think you may have one or more of the items outlined in the credit requirements listed below you may want to obtain your credit report in advance of applying for a Direct Graduate PLUS Loan. You should work to correct negative items on your credit report as soon as possible.

Credit Criteria

Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:

• Any current delinquency of 90 days or more
• Any of the following items within the preceding five years of the date of the credit report: Default, Bankruptcy, Discharge, Foreclosure, Repossession, Tax Lien, Wage Garnishment, Write-off of a Title IV Debt, Open Collection

Recent changes in the law that governs the terms and conditions of Direct Graduate PLUS Loans establish a specific extenuating circumstance for certain PLUS loan applicants who would otherwise be considered to have adverse credit history. Specifically, a PLUS loan applicant may qualify for a PLUS loan based on extenuating circumstances if the applicant:

• Has been or is delinquent for 180 days or less on mortgage loan payments, or on medical bill payments for the applicant or the applicant's family, and
• Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to PLUS loan applicants.

Credit Denial Options

• Apply with an endorser. Students with no credit history or poor credit may find an endorser (co-signer) for the loan.
• Correct any invalid information on your credit report that may have led to the denial.
• Appeal the denial (see below for contact information).

Correspondence from the Department of Education will be sent to Direct Graduate PLUS Loan applicants who receive an adverse credit determination. Information will include instructions regarding appealing the denial of a Direct Graduate PLUS Loan Application and securing an endorser for the loan.

Application procedures for the Direct Graduate PLUS are listed on the Graduate PLUS Application form found in the financial aid packet or online through Moodle:

Moodle Home Page ► Student Services ► Resources ► Financial Aid ►
2010-2011_Financial_Aid_Packet_Materials

Alternative Loans

Alternative Loans are private loans that cannot be consolidated with Direct Loans. Alternative Loans are not federal loans and are therefore available to international students and borrowers without a FAFSA. Interest rates on Alternative Loans are not fixed and can vary by lender and borrower's credit rating.

Alternative Loans require credit approval; if credit is denied, an endorser will be required. International students must have a co-signer who is U.S. citizen or permanent resident in order to receive an Alternative Loan.

Scholarships

Scholarships are a form of gift aid and do not have to be repaid. Scholarships vary in amount and can be based on a student's financial need, merit, community involvement, or other criteria.

• Adler School Scholarships: The Adler School funds a limited number of scholarships for both incoming and current students. Students must be enrolled full-time to receive a scholarship from the Adler School. Descriptions of these scholarships and application information can be found on the Scholarship pages of this web site.
• Scholarships from Other Institutions: The Office of Financial Aid posts any information we receive about outside scholarships on Moodle, the Adler School's student online forum:

Moodle Home Page ► Student Services ► Resources ► Financial Aid ► Scholarship_Resources

Federal Work Study Program

Students who have filed a FAFSA, demonstrate financial need, and indicate their interest in federal work study positions will have "Federal Work Study" listed on their financial aid Award Letter. Eligible students may apply for federal work study positions listed on Moodle:

Moodle Home Page ► Student Services ► Forums ►
FWS - Federal Work Study Opportunities

The Office of Financial Aid begins posting work study positions the second week of the fall term with complete application information specific to each position. All work study positions pay $11/hour. Students are limited to working a maximum of 20 hours per week.

Please note that Federal Work Study earnings are factored into a student's financial aid budget. If you are approaching your financial aid budget maximum, you must confirm with the Office of Financial Aid that you are eligible to be hired for a Federal Work Study position.

National Health Service Corps – Federal Loan Forgiveness

For current students and alumni who are considering student debt relief options, the Adler School of Professional Psychology strongly encourages its graduates to consider participation in the National Health Service Corps. This is a program of the U.S. Department of Health and Human Services that was formed to ensure an adequate supply of health professionals to provide primary health services to populations located in designated health professional shortage areas. As an incentive for medical professionals to participate in this program, the NHSC will repay up to $50,000 of federal student loans for participants that commit to a two-year contract. To learn more about the National Health Service Corps, please view our Career and Professional Development site.