Student Loan Procedures for Federal Direct Loans
Before Applying for A Loan, Get the Facts
An education loan is a legally-binding contract that must be repaid with interest even if the student does not graduate, drops to less than half-time, or is unable to find a job. A person is not obligated to accept loan funds if they are not needed. However, if money is needed, a student should not hesitate to apply for a loan.
Normally, funds are released in installments to coincide with the academic terms. Loan funds will be issued directly to the school and distributed according to established procedures. A federal origination fee may be deducted from the student's loan proceeds prior to disbursement. Funds can only be used for education-related expenses.
To avoid unnecessary delays, the student's application must be accurate and complete. For additional information and assistance, contact the academic advising office by calling (800) 873-3873 Ext. 5031.
Features and Benefits of Federal Direct Loans
Subsidized and unsubsidized Federal Direct Loans will allow a student to borrow up to the maximum amount available for the student's grade level.
The federal government pays interest on subsidized direct loans while the student is actively enrolled in school and for the six-month grace period afterward. If a student is not fully eligible for the need-based, subsidized funding, he or she may obtain an unsubsidized Direct Loan for any remaining eligibility.
The unsubsidized Direct Loan will accrue interest from the date of disbursement. The student will be responsible for all interest that accrues from this date.
To be eligible for student loans, borrowers must be U.S. citizens or permanent legal residents enrolled in school at least half-time. In addition, male students must satisfy requirements under the Selective Service Act. If a student is in default on a prior loan or owes a refund on grant money, he or she will not be able to borrow until the default or refund has been resolved. Loan awards cannot exceed the cost of education.
Financial Aid Code of Conduct
Nazarene Bible College is committed to providing the best possible customer service to our students and their families. It is our goal to provide information and advice, determined solely by consideration of the best interests of our students and their parents or guardians. To ensure students and their families continue receiving sound and impartial advice from the Nazarene Bible College staff, and to avoid the potential for, or appearance of, conflicts of interest regarding student loans, Nazarene Bible College shall abide by this Code of Conduct in its relationships with lenders, guarantors, and servicers of education loans. It is the intention of Nazarene Bible College that this Code of Conduct complies with the letter and spirit of the Higher Education Act, as amended by the Higher Education Opportunity Act of 2008.
Nazarene Bible College as an institution or any individual, employee, or agent of Nazarene Bible College shall not enter into any revenue-sharing arrangements with any lender. No individual employed by the Nazarene Bible College or who otherwise has responsibilities with respect to education loans, or agent who has responsibilities with respect to education loans, or any of their family members, shall solicit or accept any gift from a lender, guarantor, or servicer of education loans. For purposes of this prohibition, the term "gift" means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount.
An individual employed by the Nazarene Bible College or who otherwise has responsibilities with respect to education loans, or an agent who has responsibilities with respect to education loans, shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.
Nazarene Bible College does not have a preferred lender list (PLL) for alternative loans and, therefore, will not use a preferred lender list (PLL) to:
- Require a prospective borrower to use a lender on a PLL;
- Deny or otherwise impede a borrower's choice of lender;
- Cause unnecessary certification delays for borrowers who use a lender that is not listed on a PLL.
Nazarene Bible College shall not request or accept from any lender any offer of funds to be used for private education loans, including funds for an opportunity pool loan, to students in exchange for the institution providing concessions or promises regarding providing the lender with:
- A specified number of loans made, insured, or guaranteed under Title IV;
- Specified loan volume of such loans; or
- A preferred lender arrangement for such loans.
- An “opportunity pool loan” is defined as a private education loan made by a lender to a student (or the student’s family) that involves a payment by the institution to the lender for extending credit to the student.
Nazarene Bible College shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing.
Any individual who is employed by Nazarene Bible College, or who otherwise has responsibilities with respect to education loans or other student financial aid, and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.