Loans

Federal loans are available to all students who file a FAFSA (Free Application for Federal Student Aid). Those who file a FAFSA will automatically qualify for federal loans, regardless of need.

Complete the FAFSA for the upcoming school year – as well as the entrance counseling and master promissory note required for borrowers – no later than one month prior to the session start date for which the loan will be used.

• If you need additional funds to cover remaining expenses after you’ve maxed out your federal loans
• If you need additional funds for expenses associated with a study abroad program or aviation flight courses 
• If you are unable to enroll half time to qualify for a federal student loan
• If you are no longer eligible for federal loans due to academic progress

• Disclosure forms – Lenders must provide required disclosures to the student and cosigner, if applicable, at three times during the private loan origination process:
  • Application and Solicitation Disclosure – Provided during the online loan application process or via mail included with the promissory note
  • Approval Disclosure – Provided after the loan is approved and the lender has received the promissory note, the Application and Solicitation Disclosure, the Borrower Self Certification Form and the school certification. The applicant and any cosigner have 30 days to return the Approval Disclosure.
  • Final Disclosure – Provided after the lender receives the Approval Disclosure from the borrower and any cosigner indicating that the loan has been accepted by the student and the cosigner, if applicable. The loan will not disburse (be paid out) until at least 3 business days after this disclosure is received by the borrower and any cosigner.
• Borrower Self-Certification Form – A credit-approved student borrower must submit a completed borrower self-certification form to the lender before a school certification will be requested.
• The Borrower Self-Certification Form requires information on your cost of attendance, as determined by the school you attend. Please refer to our cost of attendance chart.
• Timing requirements – These federal regulations extend the loan processing timeline. Meeting deadlines for specific steps will be critical to the successful and timely disbursement of your loan funds.

• Interest rates on private loans can be variable or fixed
  • Variable – rate can go up or down
  • Fixed – rate is locked in
  A variable rate isn’t bad, but just pay attention to the terms and conditions of how that rate may change over time.

• Check to see how frequently your intended lender compounds interest on private loans. A low interest rate that is compounded daily is usually a more expensive loan.
• Interest on a private student loan begins to accrue upon disbursement (when the loan is paid out), unlike subsidized federal student loans that begin to accrue interest after you graduate, drop below half-time enrollment and/or have used up your grace period. This is another reason to exhaust your eligibility for federal student loans before taking a private student loan.
• Fees charged by some lenders can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees can cost more than a loan with a higher interest rate and no fees. (Lenders that do not charge fees often roll the difference into the interest rate.) A good rule of thumb is that 3% in fees is about the same as a 1% higher interest rate.
• Federal student loans also offer better repayment and forgiveness options – another reason to exhaust your eligibility for federal student loans before taking a private student loan. Some private lenders will let you defer repayment until after graduation; some may not.
• Private loans require that you have a credit history and verifiable income; if you do not meet the qualifying requirements, a co-signer may be required. It is better to apply for a private student loan with a cosigner, even if you could qualify for the loan on your own. Applying with a cosigner usually results in a slightly lower rate, because the loans are not as risky for the lender.
• Keep in mind that private student loans are only available to students whose cost of attendance has not already been met with other aid.

• Research loans. BGSU will process a private loan from any lending institution. However, we have compiled a list of lenders that are most frequently used by Bowling Green State University students. Elm Select is a private loan selection tool that allows you to compare lender rates, terms and benefits. It’s also a good idea to check with your private bank. They sometimes offer better interest rates.
• Apply for the loan. Keep in mind that credit approvals are good for only 120 days. Therefore, do not apply earlier than 30 to 45 days prior to the start of the semester. Apply for funds for the entire school year if you can to avoid going through the application process multiple times throughout the year. When asked to designate the loan period, check our loan period dates to be sure the dates you enter match BGSU's defined loan periods.
• Your lender will send us an electronic certification to complete. At this point, BGSU requires you to complete a Private Loan Questionnaire. This questionnaire must be completed electronically before BGSU will process your private loan certification. Check your MyBGSU To-Do list items for a link to the Private Loan Questionnaire.
• Once the Private Loan Questionnaire has been completed, BGSU will complete the certification and return it electronically to your lender.
• Keep in mind the disclosure requirements will add to the processing time. Depending on your lender, the process can take 3 to 6 weeks from the time you apply until receipt of funds. Your lender will send your loan proceeds to BGSU electronically.

Federal loans are available to all students who file a FAFSA (Free Application for Federal Student Aid). Those who file a FAFSA will automatically qualify for federal loans, regardless of need. 

Complete the FAFSA for the upcoming school year – as well as the entrance counseling and master promissory note required for borrowers – no later than one month prior to the session start date for which the loan will be used.

All graduate students who file a FAFSA will be offered direct unsubsidized loans. No credit check is required.

• Offered to students regardless of need
• Begin accruing interest while you’re in college and once the loan has been disbursed (paid out to BGSU)
• Repayment begins after graduation or when you drop below half-time enrollment (4 credits)
• A 6-month grade period before repayment
• A fixed interest rate (determined annually)
• The maximum amount you can borrow in a year is $20,500.

How to accept or decline loans

It’s important to know that:

• You do not have to accept any loans you are offered
• You can borrow a lower amount than what you are offered

If you accept a loan you will have to complete a master promissory note and entrance counseling at studentaid.gov.

More details about federal direct loans

• If you need additional funds to cover remaining expenses after you’ve maxed out your federal loans
• If you are unable to enroll half time to qualify for a federal student loan