Loans

Beginning with the 2010-2011 academic year, Salem College will participate exclusively in the Federal Direct Loan (subsidized and unsubsidized student loans) and the Federal Direct Parent PLUS Loan programs.

The traditional Federal Family Educational Loan Program (FFELP) loans (i.e., Stafford Loan and Parent PLUS Loan) through banks, credit unions, and other student loan lending companies will no longer be processed at Salem College, as we will stop doing business with these lenders. Under the Direct Loan Program, students and parents borrow from the federal government through Salem College and lenders are eliminated from the picture.

To be eligible for these loans, you must first complete the Free Application for Federal Student Aid ( FAFSA ). After completing the FAFSA and turning in all the necessary documents, you will receive an award letter stating the Direct loan type and amount you are eligible for.

Initial financial aid awards are based on full-time enrollment. If you are not enrolled full time at the end of drop/add, your award will be adjusted. If you are enrolled less than half time, you financial aid will be cancelled.

Dependent Undergraduate students enrolled in a degree-seeking program may borrow up to the following amounts per year:

• $3,500 as a freshman
• $4,500 as a sophomore
• $5,500 as a junior or senior

Dependent students may borrow an additional $2,000 in unsubsidized Direct loan if needed. 

The maximum amount a dependent undergraduate student may borrow is $31,000 ($23,000 of which may be subsidized).

Independent undergraduate students and dependent students whose parents have been denied access to a PLUS Loan may also borrow additional unsubsidized Direct loans. The additional amount that a student may be able to borrow are:

• $6,000 as a freshman or sophomore
• $7,000 as a junior or senior

The maximum amount an independent student may borrow is $57,500 ($23,000 of which may be subsidized).

Graduate Students
Graduate students are generally allowed to borrow up to $20,500 each academic year ($8,500 of this amount may be in subsidized loans). The amount a graduate student is allowed to borrow can not exceed Salem’s graduate cost of attendance.

Parent Plus Loans
Parents of dependent students may apply for a Federal Direct Parent PLUS Loan. This loan can be used to supplement other financial aid awarded to a student, such as the Federal Direct Loan. The student must first complete the Free Application for Federal Student Aid (FAFSA).

Loan Repayment Calculators
The following website offers repayment calculators as well as budget information to help determine what you can afford to borrow in student loans.

National Student Loan Program