Federal Loan Forgiveness
Students and families may have questions about loan forgiveness in the wake of Becker’s closing. The best resource for students/borrowers for Closed School Discharge is https://studentaid.gov/manage-loans/forgiveness-cancellation/closed-school (opens in new window). This site includes loan discharge criteria/eligibility requirements, information regarding the discharge process, and a list of Q&A’s.
Current Becker students who will be transferring to a new program for Summer 2021 or Fall 2021 will not be eligible for loan forgiveness. From the website listed above:
You are not eligible for discharge of your loans if your school closes and any of the following is true:
- You are completing a comparable educational program:
- through a teach-out,
- by transferring academic credits or hours earned at the closed school to another school, or
- by any other comparable means.
We will update this information in the coming weeks as more details are finalized.
Corona Virus Effect on Loan Repayment 2020/2021
Due to the ongoing Covid 19 Pandemic, the government has altered or suspended some loan repayment requirements. As of now, this suspension lasts through September 30, 2021. The most current information can be found on the Financial Literacy section of the site.
Direct Loans: Student
Direct loans are offered to students from the Department of Education for student who have completed a FAFSA. Students are welcome to decline or reduce the loans offered to them by emailing the Financial Aid Department (email@example.com) from their Becker email address.
Federal Direct Subsidized Loans
Federal Direct Subsidized loans are based upon demonstrated financial need and the federal government subsidizes the interest. No interest is charged while the student maintains an enrollment status of at least half-time (six credits). Interest does begin to accrue from the start of the six month grace period and throughout the repayment period. The interest rate for Federal Direct Subsidized Loans for the 2020-2021 academic year, first disbursement made between July 1, 2020 and June 30, 2021, is 2.75%.
Federal Direct Unsubsidized loans
Federal Direct Unsubsidized loans are not awarded on the basis of financial need. The loan accrues interest from the time it’s disbursed until it is paid in full. If you allow the interest to accrue while you are in school or during repayment periods, this interest will be capitalized. Interest that is capitalized will be added to the principal amount of your loan, and additional interest will be based on the higher amount.
The interest rate for Federal Direct Unsubsidized Loans (Undergraduate) for the 2020-2021 academic year, first disbursement made between July 1, 2020 and June 30, 2021, is 2.75%.
The interest rate for Federal Direct Unsubsidized Loans (Graduate) for the 2020-2021 academic year, first disbursement made between July 1, 2020 and June 30, 2021, is 4.30%.
Students are welcome to pay the interest on their Direct Unsubsidized loan while in school and without penalty. Students interested in making payments should contact their lender directly. (Becker Financial Aid can help determine the lender).
Federal Direct Loan Fee
The origination fee is held by the U.S. Department of Education as an expense of assuming a Direct Loan. Loans with a first disbursement date on or after October 1, 2019 and before October 1, 2020, have a 1.059% fee deducted from each loan disbursement. Loans with a first disbursement date on or after October 1, 2020 and before October 1, 2021, have a 1.057% fee deducted from each loan disbursement.
First time borrowers must complete Entrance Counseling and sign the electronic Master Promissory Note (MPN). Students are the borrowers of these loans, so they need to login to studentaid.gov (opens in a new window) using their FSA ID to complete these documents. Loans will not show on the student’s bill until both these requirements are met.
Direct Parent Loans (PLUS)
The Parent Loan for Undergraduate Students (PLUS) enables parents of dependent undergraduates to borrow an amount equal to cost of attendance, less other financial aid. Parent loans differ from student loans in that repayment of the loan begins 60 days after the loan is fully disbursed, however parents can defer these payments while their student is attending college at least half-time (6 credits). The interest rate for Federal Direct Parent PLUS Loan for the 2020-2021 academic year, first disbursement date on or after July 1, 2020 and before June 30, 2021 is 5.30%.
Federal Direct PLUS Loan Fee
The origination fee is held by the U.S. Department of Education as an expense of assuming a Direct Loan. Loans with a first disbursement date on or after October 1, 2020 and before October 1, 2021, have a 4.228% fee deducted from each loan disbursement.
Applying for the PLUS Loan
To apply for a parent plus loan go to studentaid.gov (opens in a new window) and click on “Sign In.” When signing in, use the information of the parent applying for the loan (the parent’s credit will be checked). Click on “Apply for a Parent Plus Loan” and follow the directions. Parents must also sign the electronic Master Promissory Note (MPN). If a parent is denied and they wish to use an endorser, they also must complete Entrance Counseling.
Loan Repayment and Exit Counseling
The first step in repaying loans is to complete required exit counseling through studentaid.gov (opens in a new window). When completing Exit Counseling, students will want to know their current loan balance; this information can be found at the National Student Loan Data System (opens in a new window).
In order to assist student with loan repayment plans, Becker College has partnered with EdAmerica (opens in a new window). Ed Financial will guide students through every step of the loan repayment process at no additional cost.