Student Loans
Announcement for Chase Bank borrowers
Chase bank has decided to discontinue offering Stafford loans to many colleges and universities, including Davenport. Therefore, we have removed Chase Bank from our list of preferred lenders. Students who already have Chase Bank loans scheduled for disbursement will receive their funds as scheduled. However, for any new or additional loans, students who formerly used Chase as their lender will need to choose a new lender.
To choose a new lender, you will need to complete a new master promissory note.
Step 1 - Go here to choose a new lender
Step 2 - Click on Apply Now to choose a new lender
Step 3 - Login to your account and click on "Start a loan"
Step 4 - Choose either "I am a student" or "I am a parent"
Step 5 - Choose your loan type by clicking on Stafford Loan (for students) or PLUS loan (for parents)
Step 6 - When your information is displayed, choose the option to view additional lenders. At that point you will begin the process of completing a new master promissory note. When choosing lenders, be sure to select one other than Chase Bank or Bank of America. Double check your lender choice prior to clicking the submit button.
Once the application is approved (usually a couple of days), Davenport Financial Aid will receive electronic notification of your new promissory note and will award your loan with that new information.
Options for Borrowers
Through Davenport University, students have excellent options on educational loans. Davenport participates in the Family Federal Educational Loan Program (FFELP). Davenport works directly with various lenders to provide federally-backed educational loans. Lenders provide students with various benefits to assist the students in achieving their educational goals. Choose one of our preferred lenders (below), and you can qualify for additional borrower benefits, such as zero-percent origination fees and a percentage of cash back after you make a certain number of payments.
Preferred Lender Disclosures
The Financial Aid Processing Center has selected five preferred lenders on the following basis: competitive borrower benefits; accuracy and timeliness of processing; and customer support for borrowers and the institution. These five lenders have a history of providing excellent service to students. They also provide competitive benefits to borrowers, such as financial incentives for maintaining on-time payments. Davenport University performs an annual review of all lenders in order to make certain that Davenport students have continued access to excellent benefits.
To ensure a smooth loan process for students, all of our preferred lenders process loans through OpenNet, which is an online loan application run by Sallie Mae. This creates a unified process to best serve students. Of the preferred lenders, LaSalle and Sallie Mae are independently owned and operated. Nellie Mae is a Sallie Mae company, and 5/3 Educational Lending is an independent bank that has contracted with Sallie Mae to offer student loans. All preferred lenders sell their loans on the secondary market to Sallie Mae. This does not alter the borrower benefits offered by the individual lenders, nor does this limit a student’s choice of lender.
We encourage students to choose a preferred lender; however, student and parent borrowers may select any FFEL lender they wish, whether or not the name of the bank or credit union is on the preferred lender list. Davenport cannot guarantee the borrower benefits of the non-preferred lenders. Davenport Financial Aid is dedicated to processing loan requests as quickly as possible for all students. Some smaller lenders may have more manual processes, and this may cause a slight delay in loan processing, approval and disbursement. Students and parents are encouraged to contact an Enrollment Advisor to discuss various lender services and options.
Stafford Loan (Federal aid for student borrowers)
Bank of America
Fifth-Third Bank
Sallie Mae Education Trust
Nellie Mae
Interest is fixed at 6.8% on Federal Subsidized and Unsubsidized Stafford loans first disbursed beginning July 1, 2006. Funds are distributed in multiple disbursements, usually one per semester.
Stafford Loans enter repayment (principal and interest), six months after the student graduates or ceases to be enrolled at least half-time. Standard repayment lasts ten years (alternative repayment plans are also available).
During in-school periods (enrolled at least half-time) and in
grace periods, the Federal government pays the interest on
Subsidized Stafford Loans (this is why subsidized loans are
need-based).
Freshman = $3,500
Sophomore = $4,500
Junior/Senior = $5,500
Graduate Student = $8,500
Repayment of principal on Unsubsidized Stafford Loans also begins six months after the student graduates or ceases to be enrolled at least half time, but there is no interest subsidy (meaning the student is responsible for paying the interest that accrues during in-school and grace periods, as well as in repayment).
Additional unsubsidized funds are available to independent students based on grade level and costs of attendance.
Apply for a Stafford Loan
Applying for a Stafford loan involves three basic steps. Read through them carefully before applying for your loan.
STEP 1 – Entrance Counseling
A. All first-time borrowers must complete loan entrance counseling. This will help you understand your rights and responsibilities as a student loan borrower and must be completed if you are borrowing through Davenport University and Sallie Mae for the first time.
B. Go to Mapping Your Future to complete this process.
C. Choose “Michigan” as your state. Online students also must choose Michigan in order to find the Davenport University link. Click
D. In the list of schools, choose “Davenport University—Grand Rapids, MI” no matter which location you attend.
E. NO LOAN PROCEEDS WILL BE DISBURSED UNTIL THIS COUNSELING HAS BEEN SUCCESSFULLY COMPLETED.
Step 2 – Master Promissory Note
A. After you complete entrance counseling, you will be directed to the Davenport site to complete your master promissory note.
B. Go to the Selected Lender page to choose a lender. (You can use any lender, but to get 'extra borrower benefits,' you must choose one of our preferred lenders.)
C. Log in or register as a new user.
D. Choose 'Student - Start Your Stafford Master Promissory Note'. Complete, sign and submit your loan application (Master Promissory Note/MPN) electronically. Just one MPN is needed to borrow up to ten years from the date the note is signed.
E. Print and read your promissory note thoroughly. This is a legal document and your promise to repay your loan(s). No loans will be disbursed until this document is complete.
STEP 3 – Manage Your Loans
Sign up for Manage Your Loans, Sallie Mae's online account management tool. This is a great resource for helping you manage your loans.
To apply for additional Stafford Loans, download the Loan Request Form.
Parent Loan for Undergraduate Students
(PLUS Loan, Federal aid for parents of dependent students only)
The Parent Loan for Undergraduate Students (PLUS) is available to credit-worthy parents of dependent, undergraduate students. PLUS loans are not subsidized and parents are responsible for all interest that accrues on the loan from the day it is disbursed until the loan is paid-in-full.
Interest is fixed at 8.5% for loans disbursed on or after July 1, 2006. A 3% origination fee is deducted before proceeds are disbursed. Proceeds are normally disbursed electronically to the school in multiple disbursements (usually one per semester). Parent borrowers begin repayment 30 days after the loan is fully disbursed, and standard repayment lasts ten years.
Apply for a PLUS Loan
- Make sure your student has completed the Free Application for Federal Student Aid (FAFSA)
- From the Selected Lender page, click on your chosen lender.
- Follow the instructions to complete your application (MPN).
- Print and read your promissory note thoroughly - this is a legal document and your promise to repay your loan(s).
- Fill out and send a PLUS Loan Request Form to the financial aid office. (Mailing address, email and fax number are on the form).
Parents need only complete one loan application (Master Promissory Note/MPN) to borrow for their dependent student up to ten years from the date the note is signed. (Multiple MPNs are required for multiple students within the same family.)
Alternative Loans (other lending programs, not Federal aid)
Many alternative educational loans are available. These are consumer loans, not federal aid, and may have income requirements and credit checks. Contact Financial Services at the location you wish to attend for more information on alternative loans.
Loan Exit Counseling
Online student loan exit counseling is provided by Mapping Your Future. This program is designed to help you understand your rights and responsibilities as a student loan borrower, and help you successfully meet your repayment obligation. If you have borrowed loans to attend Davenport University, you are required to complete exit counseling. |