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Bryn Mawr College
101 N. Merion Ave.
Bryn Mawr. PA 19010-2899
Phone: 610-526-5000
Fax: 610-526-6525
info@brynmawr.edu

Billing, Payment, and Financial Aid

Loan Funds

Federal Direct Loans

The Federal Direct Loan Program enables students who have a citizenship status of U.S. Citizen or U.S. Permanent Resident to borrow directly from the federal government rather than from a bank. Students must complete the Free Application for Federal Student Aid (FAFSA) and be enrolled at least half time (two units). Loans made through this program include the Direct Subsidized and the Direct Unsubsidized Loans.

Repayment begins six months after the student is no longer enrolled at least half-time at an accredited institution. The repayment term ranges from 10 to 25 years depending on the amount borrowed and the repayment plan chosen. The minimum monthly payment is $50. If the student borrows a smaller amount, the student will have shorter payment terms. If the student borrows a larger amount, the student may wish to consolidate the loan to extend the repayment term. The student should review options at www.ed.gov/DirectLoan.

Interest rates on federal student loans are set by Congress. Under the Bipartisan Student Loan Certainty Act of 2013 federal student loan interest rates are tied to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan. Interest rates can be viewed at www2.ed.gov/offices/OSFAP/DirectLoan/student.html.

Loan fees will be deducted proportionately from the gross amount on all Federal Direct Loans. The amount of loan funds the student receives is less than the amount borrowed, but the student is responsible for repaying the entire amount borrowed and not just the amount received. For loans first disbursed on or after December 1, 2013, the loan fee was 1.072%. For loans disbursed after October 1, 2014, the loan fee may be different depending on the across-the-board federal budget cuts known as “sequester” put into place by the Budget Control Act of 2011. The Department of Education will notify borrowers of fee changes.

Additional information on the Federal Direct Loan Program is available from Student Financial Services or the Student Financial Services Handbook.

Perkins Loan

The Perkins Loan Program is administered by the College from allocated federal funds. Eligibility for a Perkins Loan is determined through a federal needs test. The 5% interest rate and repayment of the loan begin nine months after graduation, withdrawal from the College or dropping below half-time status. No interest accrues on the loan until repayment begins. There are no loan fees for Perkins Loans. Cancellation and deferment of loan payments are possible under certain circumstances, which are detailed in the loan promissory note. Awards range from $500 to $4,000 per year and are based on financial eligibility and the availability of funds.

Federal Direct PLUS Loan

The Federal Direct PLUS Loan is a federally subsidized loan program designed to help parents of dependent undergraduates pay for educational expenses. Parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs. Parent PLUS Loan borrowers cannot have an adverse credit history (a credit check will be done).

Repayment begins on the date of the last disbursement. Parent PLUS loan borrowers whose funds were first disbursed on or after July 1, 2013 have the option of delaying their repayment on the PLUS loan either 60 days after the loan is fully disbursed or six months after the dependent student is not enrolled at least half-time. During this time, interest may be paid by the parent or capitalized.

Interest rates on PLUS loans are set by Congress. Under the Bipartisan Student Loan Certainty Act of 2013 federal loan interest rates are tied to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan.

A loan fee that is a percentage of the principal amount of the loan will be deducted from the gross amount on the Federal Direct PLUS Loan. The amount of loan funds the parent receives is less than the amount borrowed, but the parent is responsible for repaying the entire amount borrowed and not just the amount received. For loans first disbursed on or after December 1, 2013, the loan fee was 4.2882%. For loans disbursed after October 1, 2014, the loan fee may be different depending on the across-the-board federal budget cuts known as “sequester” put into place by the Budget Control Act of 2011. The Department of Education will notify borrowers of fee changes.

International Loan

The International Loan Program is administered by the College from institutional funds to students who are not U.S. Citizens or U.S. Permanent Residents, and must be awarded as part of a student’s aid offer. Recipients must remain enrolled at the College at least half time to retain eligibility. The 5% interest rate and repayment of the loan begin 12 months after graduation, withdrawal from the College or dropping below half-time status. No interest accrues on the loan until repayment begins. The maximum repayment period is 10 years. Students who file for bankruptcy may still be required to pay back the loan. Students may not borrow more than the amount offered as part of a financial aid award from year to year.