Loans

Amount

The maximum amount you can borrow depends on your status and the number of credits you have earned.

Credits Earned	Dependent Students	Independent Students
0-29 credits (freshman level)	$5,500 - No more than $3,500 of this amount may be subsidized	$9,500 - No more than $3,500 of this amount may be subsidized
30-59 credits (sophomore level)	$6,500 - No more than $4,500 of this amount may besubsidized	$10,500 - No more than $4,500 of this amount may be subsidized
60+ credits (junior and senior level)	$7,500 - No more than $5,500 of this amount may be subsidized	$12,500 - No more than $5,500 of this amount may be subsidized
Maximum Total When You Graduate	$31,000 - No more than $23,000 of this amount may be in subsidized loans	$57,500 - No more than $23,000 of this amount may be in subsidized loans

Eligibility

You can be eligible for both subsidized and unsubsidized Loans, depending on your financial need as determined after you complete the Free Application for Federal Student Aid (FAFSA). Visit studentaid.ed.gov for more information. 

• Subsidized loans are for students who demonstrate need. The federal government generally pays the interest while you’re enrolled at least half time, pursuing a degree or certificate.

• Unsubsidized loans are not based on need. You are responsible for interest that accrues. You can choose to pay the interest while you’re in school, or have accrued interest added to your loan when you enter repayment.

Interest rate

Direct Subsidized and Direct Unsubsidized Loans have a fixed interest rate for the life of the loan. Rates vary depending on when the loan is disbursed, and whether a loan is subsidized or unsubsidized.

Loans First Disbursed	Subsidized	Unsubsidized
July 1, 2024, to June 30, 2025	6.53%	6.53%

Loan fees

The fee for Direct Subsidized and Direct Unsubsidized Loans is 1.057% for loans first disbursed after October 1, 2020, but before October 1, 2025.

Repayment

Learn more about repayment.

Deadline

Students are encouraged to apply by the following dates in order to ensure that loan funds arrive in time for the start of the semester. Loans can be processed throughout the term as long as the student continues to meet eligibility guidelines.

• July 1—full-year and fall semester loans
• December 1—spring semester loans
• May 1—summer semester loans

How to apply

After you apply for aid, you'll get a financial aid offer letting you know if you qualify for a Direct Subsidized or Direct Unsubsidized Loan.

If you borrow this loan, you must finish these steps at least one month before you start classes.

1. Complete entrance counseling and your master promissory note.

   If you’re a new Bethel borrower, you must complete both loan entrance counseling and a Master Promissory Note (MPN). These are two distinct separate steps on the website. Select Minnesota as the School State when completing these requirements. You will need reference information for two people with different U.S. addresses.

2. Request your loan amount.

   A student borrows a loan for the academic period indicated on the offer letter (e.g. the whole school year). Keep in mind that direct loans are disbursed equally over each eligible term even though your student charges are based on your enrollment per term and may not be equal.

3. Request the amount you’d like to borrow online.

   1. Go to your Financial Aid Requirements channel in MyBethel and click Financial Aid Offer.
   2. Select the appropriate academic year from the drop-down list.
   3. Click the Accept Financial Aid Offer tab. Decide how much of your Direct Subsidized or Direct Unsubsidized Loan you want to borrow for the full year, and follow the instructions.
   4. Click Submit Decision.

Funds are disbursed directly to your Bethel student account and are processed for the entire academic year. Half of the funds (minus any loan fees) are posted at the beginning of fall term; the other half of your loan funds are posted at the beginning of spring term.

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Amount

The maximum amount your parent may borrow through a Parent PLUS Loan or that the student may pursue through a private loan is listed as "PLUS/Private Loan Eligibility" on your financial aid award. You access your financial aid award through the Financial Aid Requirements channel in MyBethel. If you accept this amount online, it indicates to the financial aid office that either your parent will pursue a PLUS loan or that the student will pursue a private loan. Separate steps to apply are required by the lenders. Visit the Student Aid website for more information on the Parent PLUS loan.

Eligibility

• The borrower must be the biological or adoptive parent (or, in some cases, the stepparent) of the student.
• The student must be a dependent student who is enrolled at least half time.
• The borrower must pass a credit check for approval.
• Both the parent borrower and student must be U.S. citizens or eligible noncitizens.

Interest rate

Direct PLUS loans have a fixed interest rate of 9.08% for loans first disbursed between July 1, 2024 and June 30, 2025.

Loan fees

The borrower pays the lender to help cover the cost of processing the loan. It’s calculated as a percentage of the amount borrowed.

The fee for a Direct PLUS Loan is 4.228% for loans first disbursed after October 1, 2020 but before October 1, 2025.

Repayment

Parents enter repayment 60 days after the loan is fully disbursed (approximately April 1 for a full-year loan) with a minimum payment of $50 per month. However, your parent may request to delay repayment until 6 months after you graduate or are no longer enrolled at least half time.

To request a deferment, your parent will need to contact the Federal servicer of the PLUS Loan. Servicer contact information is available at the studentaid.gov (by phone: 800.433.3243). Your parent will need his/her FSA ID and password to log in to the studentaid.gov website.

Learn more about repayment and Loan Servicers.

Deadline

Parents are encouraged to apply by the following dates in order to ensure that loan funds arrive in time for the start of the semester. Loans can be processed throughout the term as long as both the student and parent continue to meet eligibility guidelines.

• July 1 - full year and fall semester loans
• December 1 - spring semester loans
• May 1 - summer semester loans

How to apply

The parent of a dependent student may apply for a PLUS loan if the student needs to borrow more than the maximum subsidized and unsubsidized loan amounts. If the student wants to be the borrower instead, he/she must review private loan options (below). 

If eligible, here's what your parent should do to complete the process.

1. Prepare to apply.

   Since the Parent PLUS loan is in the parent borrower’s name, the parent pursuing the loan will need to have an FSA ID. Your parent can create an account on the studentaid.gov website if he/she does not already have one. If your parent does not want a loan in his/her own name, you should review private loans for students. 

2. Determine Amount to Request.

   Your financial aid offer outlines the maximum amount you can request in additional loan funding based on your overall Cost of Attendance. The actual amount you need to pay your bill may be less than your maximum eligibility. Reviewing your estimated bill through your “My Statements and Finances” channel in MyBethel may be helpful with determining an amount to request. When calculating how much to request, make sure to account for the 4.228% origination fee that is deducted up from each disbursement.

3. Select and complete the application.

   Have your parent sign in to the studentaid.gov website. Under the parent tab, your parent should choose Apply for a Parent PLUS loan. Read the information, scroll down and login to start a Direct PLUS Loan Application for Parents. Please note that loan applications are available after April 1^st for the coming fall.

4. Receive loan approval and complete the promissory note.

   Once you’ve completed the application, you’ll receive notice from the Department of Education if you’re approved or denied.

   • If approved, first-time parent borrowers will need to continue the process by selecting Complete Master Promissory Note for the Parent PLUS.
   • If denied, your parent will be presented with several options (e.g., obtain an endorser, appeal the decision, request additional Direct Unsubsidized Loan for student instead of the PLUS loan).
   • If your parent is initially denied the loan he/she may choose to pursue approval through an appeal of the credit decision or by obtaining an endorser.
   • If the parent borrower chooses one of these options he/she will need to complete PLUS Loan credit counseling before funds can be disbursed.

More information

If your parent wants to change the loan amount he/she requested in the application process, the parent who is the borrower of the PLUS loan should send an email to finaid-loans@bethel.edu. Please include your name (student name), Bethel ID#, and the adjusted amount desired. For questions about the PLUS Master Promissory Note or approval status, contact the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

If you accept the PLUS/Private Loan Eligibility that is included in your financial aid award it indicates to the Financial Aid Office that either your parent will be applying for a PLUS loan or the student will be applying for a private loan. We will be waiting for a request to certify a PLUS loan from the Department of Education or a private loan from whatever lender you apply through. If you later decide that neither one of these options is necessary, please e-mail finaid-loans@bethel.edu and we can update your status to decline these loan options for you.

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Amount

The maximum amount that can be pursued is listed as “PLUS/Private Loan Eligibility” on the student’s financial aid award letter. Students can access their financial aid award through the Financial Aid Requirements channel in MyBethel (click Financial Aid Award and select the appropriate year from the dropdown list). All amounts received through these non-federal loans must be reported to the Financial Aid Office. Separate steps to apply are required by the lenders.

Interest rate

Interest rates vary depending on lenders and the credit score of the applicant.  Interest will accrue on these loans from the time of disbursement.  Payments may be required while the student is enrolled in school depending on the specific requirements of the loan program you select.

Loan fees

Fees vary depending on the loan program and the lender you select.

Repayment

Payments may be required while the student is enrolled in school depending on the specific requirements of the loan program you select.

How to apply

If you haven’t applied for financial aid through Bethel, contact a financial aid counselor before applying for a private loan.  The maximum amount that can be pursued is listed as “PLUS/Private Loan eligibility” on the student’s Financial Aid award letter.  If none is listed, contact the Financial Aid Office.

Review, compare and apply for Private Loans for Parents by going to FASTChoice. Remember these are loans that are “Not” in the student’s name.  Please see “Private Loans for Students” if you want to review private loan options which are available to student borrowers.

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Amount

The maximum amount you may request through a private loan is listed as "PLUS/Private Loan Eligibility" on your financial aid award letter. You access your financial aid award through your financial aid requirements channel in MyBethel. If you accept this amount online, it indicates to the Financial Aid Office that Seminary and Graduate students plan to pursue a private or Graduate PLUS loan. If you are a dependent undergraduate student, it indicates that either you plan to pursue a private loan, or your parent plans to pursue a Parent PLUS loan. You must select a lender and apply directly with them to secure a private loan.

Interest rate

Interest rates vary depending on lenders and your credit score. Some lenders require you to pay interest while you’re in school. Others give you the option to add the interest that accrues while you’re in school to your total loan amount when you enter repayment.

Loan fees

Fees vary depending on the loan program and the lender you select.

Repayment

Repayment terms will vary by lender, although repayment typically begins six months after you graduate or drop below half-time enrollment. You won't be penalized for paying off your loan early.

How to apply

If you haven’t applied for financial aid through Bethel, contact a financial aid counselor before applying for a private loan.

It takes a minimum of 30 days from the date of application for a private loan to be processed and the loan funds to be disbursed by the lender.

1. Determine your loan amount.

   The maximum amount you can borrow is listed as "PLUS/Private Loan eligibility" on your Financial Aid award letter. If none is listed, contact the Financial Aid Office.

2. Go to FASTChoice to compare private loans offered by our preferred lenders and apply online.

   Select a lender and complete the lender's online application and promissory note. These lenders may have more than one loan program that you can choose from.

   If you choose not to borrow from a Bethel-preferred lender, please give us the name of the lender, the lender's phone number, the amount you requested, and if the loan is for a particular term. Contact your lender directly for application instructions.

3. Complete the loan process with your lender.

   All lenders will require a self-certification form, which they provide. Some will require proof of identity or income. All requested information must be given to your lender before your loan can be processed. After you have completed the application process with the lender, they will contact Bethel to request the school certification for your loan. After Bethel transmits this information back to the lender they will contact you once more to confirm your acceptance of the loan and/or sign any remaining forms.
   
   It’s important that you’re actively involved in the loan process so your loan funds can be disbursed in a timely manner. Check your junk email to be sure you haven't missed any communication from your lender.

More information

To help you choose a private lender, we evaluate potential lenders each year. Here are our current preferred lenders and the criteria we take into account when recommending lenders.

All of our preferred lenders meet these expectations:

• They’re committed to helping borrowers avoid going into default (e.g., proactively contacting borrowers who are late on payments, providing resources that help borrowers manage their money and avoid borrowing too much).
• They’re committed to providing educational loans for the long term.
• They clearly communicate the terms and conditions of their educational loans.
• They provide a high level of customer service, including, but not limited to, online loan applications, access to loan status online, disbursement of funds through electronic funds transfer, and prompt response to any loan processing issues identified by our borrowers or our staff.

Students are free to select any lender for their educational loans. However, after a thorough review of available lenders, we encourage our students to consider our recommended lenders to ensure they receive the highest level of customer service, avoid delays, and have access to the best borrower benefits available.

Current Preferred Lenders and Disclosures

• Citizens Bank disclosure
• College Avenue Student Loans disclosure
• Earnest disclosure
• Minnesota Office of Higher Education SELF (Student Education Loan Fund) disclosure
• Sallie Mae disclosure
• SoFi disclosure

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