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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 online entrance interview, loan counseling and the master promissory note must be completed. Students are notified over the summer by the Bursar's 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 for 2017-2018 is 7.00%. There is a 4.276% origination fee deducted from the proceeds of the loan. Therefore, families should be applying for 4.276% more than what they need for the bill to cover this fee. Loan funds are disbursed directly to the College in two 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.

The following charges are not allowed to be included when calculating how much to borrow on a Plus Loan – property damage deposit, parking tickets and parking decals, library fines, lost IDs, summer housing and other miscellaneous charges. These charges will need to be paid out of pocket via cash or check from a checking or savings account.

Under current regulations, a 2017-2018 Free Application for Federal Student Aid (FAFSA) must be on file with the Financial Aid Office in order to utilize this loan program. You may file the FAFSA online at www.fafsa.ed.gov.

Please refer to the Office of Financial Aid web site 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..

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, 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 repaid 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. MEFA loans are disbursed directly to the college in two disbursements, half for the fall bill and half for the spring bill.

The following charges are not allowed to be included when calculating how much to borrow on a MEFA Loan: property damage deposit, parking tickets and parking decals, library fines, lost IDs, and other miscellaneous charges. These charges will need to be paid out of pocket via cash or check from a checking or savings account.

There are five repayment options:

  • Immediate Repayment Option:  10 years – 4.69% Fixed Rate during the anticipated in-school period; 5.54% thereafter (APR 5.82% - 6.21%)
  • Immediate Repayment Option:  15 years – 5.09% Fixed Rate during the anticipated in-school period; 5.94% thereafter (APR 6.11% - 6.42%)
  • Interest Only Option:  6.09% Fixed Rate during the anticipated in-school period; 6.89%  thereafter (APR 7.04% - 7.37%)
  • Deferred Repayment:  6.29% Fixed Rate (APR 6.36% - 6.86%)
  • Student deferred with Co-Borrower Release: 15 years - 7.09% Fixed Rate during the anticipated in-school period (APR 6.36% - 6.86%)

These rates and terms are subject to change at any time. There is a 4% origination fee. More information regarding the MEFA Undergraduate Loan can be found at the MEFA website at www.mefa.org or by contacting MEFA at (800) 449-MEFA (6332).

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.