Loans are a form of financial aid that must be repaid with interest.
- The student's financial aid package may include need-based and/or non-need-based loans.
- The student can select which items in the financial aid package to accept; therefore, may choose to decline or reduce the loan amount to better fit the student's needs and reduce the student's loan debt.
- Some types of loans have maximum limits; students are advised to only take out loans that are absolutely necessary to further their education.
- FAFSA results determine eligibility based upon need.
If you borrow federal student loans, entrance counseling and a master promissory note (MPN) must be completed at www.studentaid.gov prior to loans disbursing. Exit counseling will be required upon graduating or dropping below half-time enrollment and is also completed at www.studentaid.gov.
Repayment of Loans:
Some student loans are serviced by Allen College.
- Payment on these student loans is reported to Allen College by various agencies.
- Allen College is required by law to contact and make collection efforts for these student loans incurred while at Allen College.
- Your payments directly relate to the future availability of loans for future students. Therefore, we make every effort to help you keep your loan current.
NOTE: Student loans are NOT dischargeable or forgivable under bankruptcy. Once the bankruptcy has been completed, your loans will be placed into repayment. Your loan will be an outstanding debt until it is paid.