Important Notes for Students Receiving Financial Aid
The College of the Holy Cross participates in the Federal Direct Loan Program. Because the College is now a Direct Lending School, we can no longer process federal student and parent loans through private lenders.
If you’ve been awarded a Stafford Loan..
This loan may be Subsidized, Unsubsidized, or a combination of both. A Subsidized Stafford Loan is awarded based on financial need. Financial need is determined by the Office of Financial Aid. The federal government pays interest that accrues on the Subsidized Stafford Loan while you are in school. The Unsubsidized Stafford Loan is not based on need. The interest that accrues on the Unsubsidized Stafford Loan, while in school, must either be paid monthly or deferred and capitalized (added to the original loan balance).
Stafford Loan funds are disbursed directly to the tuition account in two disbursements, half to the fall semester and half to the spring semester. Students receiving a Stafford Loan will be notified via email when the funds have been disbursed to their tuition account.
Please note: Federal Loan regulations allow students 14 days from the date of notice that the loan was applied to their account to notify the school if they wish to have the loan canceled. Students should notify the Office of Financial Aid of their intent to cancel the loan. Students who request their Federal Stafford Loan be canceled will be responsible for any resulting balance on their billing statement.
Please refer to the Office of Financial Aid web site at for directions on completing the Entrance Interview and Promissory Note which must be completed before the loan can be disbursed.
If you’ve been awarded a Perkins Loan..
The Federal Perkins Loan is a federal student loan with a 5% interest rate during repayment. A Federal Perkins Loan is awarded based on financial need. Financial Need is determined by the Office of Financial Aid. The College of the Holy Cross serves as the lender, and the loan is made with both government funds and College funds. Repayment of the loan is administered by the Office of the Bursar through an outside loan servicer.
Perkins Loan funds are disbursed directly to the tuition account in two disbursements, half to the fall semester and half to the spring semester. Students receiving a Perkins Loan will be notified via email when the funds have been disbursed to their tuition account.
Please note: Federal Loan regulations allow students 14 days from the date of notice that the loan was applied to their account to notify the school if they wish to have the loan canceled. Students should notify the Office of Financial Aid of their intent to cancel the loan. Students who request their Federal Perkins Loan be canceled will be responsible for any resulting balance on their billing statement.
In order for first-time borrowers to receive Perkins Loan funds, an entrance interview must be completed. Students are notified over the summer by the Bursar Office regarding the entrance interview schedule.
Please refer to the section titled “Managing Repayment of your Perkins Loan” at for more information regarding the Perkins Loan Program.
If you will be receiving a Plus Loan..
The Federal Direct Plus loan is a low-interest loan available to the parents of students who are attending college at least half-time. The interest rate is a fixed 7.9%. There is a 2.0% origination fee (which is net of a 1.5% up-front rebate that assumes 12 on-time monthly payments) deducted from the proceeds of the loan. Therefore, families should be applying for 2.0% more than what they need for the bill to cover this fee. Loan funds are disbursed directly to the College in two equal disbursements, half for the fall bill and half for the spring bill. The maximum amount that can be borrowed is the cost of education less any other forms of financial aid.
Please refer to the Office of Financial Aid website at http://www.holycross.edu/admissions/financial-aid/package/financing.html for directions on starting the Plus Loan application process.
Since the Federal Direct Plus Loan will not appear as an anticipated credit on the tuition bill until the Office of Financial Aid has received all of the required paperwork, we strongly recommend that families begin the loan application process early. Students receiving a Plus Loan will be notified via email when the funds have been disbursed to their tuition account.
If you will be receiving a MEFA Loan..
The College of the Holy Cross participates in the MEFA Loan program. The MEFA Loan is a cooperative effort between colleges and universities in Massachusetts with support from the Massachusetts Educational Financing Authority. In order to be eligible for the MEFA Loan is a loan program, students must be enrolled in a Massachusetts college or university or be a Massachusetts resident. Loan amounts range from $2,000 up to the total cost of attendance less other financial aid received. Your loan may be repayed over 15 years with no penalty for early repayment. You may choose to defer payments until six months after the student graduates or separates from the college. However, the maximum deferment is 5 years.
For academic year 2009 – 2010, the fixed interest rate is 7.75% and the variable interest rate is 8.89% There is no application fee but there is a 4% origination fee. If you are interested in the MEFA Loan, please contact the Massachusetts Educational Financing Authority at 1-800-449-6332 or log onto their web site .
Since the MEFA Loan will not appear as an anticipated credit on the tuition bill until MEFA has received all of the required paperwork and the Office of Financial Aid has certified on the application, we strongly recommend that families begin the loan application process early.
If you will be receiving an Outside Loan..
In addition to the college administered loans, there are several private education loans available to students. These loans are not need based; rather they are based on credit worthiness. We encourage all students and their families to pursue federal financial aid before considering private loans. The College is utilizing BorrowSmart (a service provided by Tuition Management Systems) to assist parents with reviewing some alternative loan options. While you may use any private lender of your choice for your non-federal educational loan needs, you may want to consider the College’s list of selected lenders by logging onto the BorrowSmart website.