Loans, Work-Study & Financing Options

Federal Direct Loans

The Federal Direct Loan is a low-interest, long-term educational loan available to students. Loan capital is supplied directly by the federal government. The federal government also serves as the guarantor. There are two different forms of this loan: the Federal Direct Subsidized Loan and the Federal Direct Unsubsidized Loan. If you show demonstrated financial need based on the information from your FAFSA, your loan may be subsidized — that is, the federal government will pay the interest on the loan as long as you are in school. If you do not qualify for the subsidy on a need basis, you can still borrow up to your maximum eligibility under the Federal Direct Unsubsidized Loan Program. In this program, interest is not subsidized, and will accrue (accumulate) while you are in school. You have the option of paying the interest while in school or deferring the interest and allowing it to add to your principal balance. Repayment of the principal will begin six months after graduation or after you cease to enroll at least half-time.

Interest rate: Interest rates for the 2024-2025 academic year are fixed at 6.53 percent for both Direct Subsidized Loans and Direct Unsubsidized Loans.

Origination fee: For all loans where the first disbursement is made on or after October 1, 2020, and before October 1, 2025, the loan fee is 1.057 percent for Direct Subsidized Loans and for Direct Unsubsidized Loans.  As an example, the loan fee on a $5,500 loan would be $58.13.

Repayment terms: Repayment to the Department of Education, through your assigned Loan Servicer, begins six months after you graduate or leave school. You may extend your repayment period beyond 10 years.

For more information:

• Learn more about the Federal Direct Loan program.
• Sign your Master Promissory Note.
• Complete Entrance Counseling.
• If you have a federal loan and are looking for payment information, visit the Federal Student Aid website.

Federal Direct PLUS Loan

To help cover the gap between what financial aid covers and what is still left to pay, parents of dependent students can apply for the Federal Direct Parent PLUS Loan.  Like the subsidized and unsubsidized federal student loans, the federal government is the lender for the Parent PLUS Loan; unlike the federal student loans, though, the PLUS loan is credit-based, and parents can take out any amount up to the total cost of attendance.  The interest rate for the 2024-2025 academic year is fixed at 9.08 percent, with options to enter immediate repayment (60 days after the full disbursement of the loan) or to defer repayment of interest and principal until after the student graduates or ceases to be enrolled at least half-time.  

The U.S. Department of Education assesses an origination fee on every PLUS loan taken out.  In other words, the Department retains a certain percentage of every disbursement, so the amount that actually disburses to the student's account will be reduced by that percentage.  For all PLUS loans where the first disbursement is made on or after October 1, 2020, and before October 1, 2025, the loan fee is 4.228 percent. 

To apply for the Parent PLUS Loan: 

1. Create an FSA ID (if not already created).
2. Submit the Free Application for Federal Student Aid (FAFSA) (if not already completed).  For a review of what is needed to complete the FAFSA, please go here.
3. Complete the Department of Education's online PLUS Loan application.  To see a preview of the application process, please go here.
   • Please note: when entering the loan amount requested, parents have the option to specify an amount or simply borrow the maximum amount for which they are eligible.  To minimize families' overall debt burden, we STRONGLY recommend families only borrow what is needed and use that as the requested amount, as opposed to simply borrowing up to the maximum eligible amount.
4. Complete the Parent PLUS Loan Master Promissory Note (MPN) (for first-time PLUS Loan borrowers).  To see a preview of the MPN process, please go here.

The Financial Aid office will automatically receive the status of the PLUS Loan request one to two business days after the application is submitted, after which the office will process the loan, if approved.  Please note, the financial aid office will not begin to process PLUS Loans until mid-July.

Private Loan Information

The Office of Financial Aid does not utilize a preferred lender list. Instead, we offer resources, suggestions, and questions that students and their families should consider when researching and selecting private loans.

We suggest that students exhaust all of their federal loan eligibility before applying for a private loan. Also, parents might consider the Federal Direct Parent PLUS Loan before looking into a private loan.

ELM Select

Holy Cross partners with ELM Resources, providing a secure, online platform where students and families can research and compare various loan options, and begin the loan application process.
You can compare loan options via ELM Select:

Student Link
Parent Link
International Student Link

This is a historical list and includes lenders whose products have been used by Holy Cross students and their families within the past five academic years. It does not represent all available private loan options, and the College of the Holy Cross does not endorse or evaluate the terms of any lender listed. You are welcome to select a lender not included in ELM Select, and we will process your loan accordingly.

Private loan terms and conditions vary between lenders, so it’s important to contact them directly to learn more. Carefully compare the details of different loan products to find the best fit, particularly focusing on interest rates, repayment options, and any available incentives or benefits.

Once you've chosen a loan, you can apply through the lender’s website, accessible via ELM Select. After loan approval, the lender will notify the College of the Holy Cross, which will verify your eligibility. Both the lender notification and the school's certification are handled securely through the ELM platform.

Additional Information and Questions to Consider

Private loans may be borrowed yearly or per-semester.  Keep in mind that a loan that is taken out per semester may result in multiple inquiries to the borrower’s credit report. The amount of the loan will need to be reported. If you need assistance planning or have questions, please do not hesitate to contact us.

To reduce students’ overall indebtedness, we suggest considering a private loan in the parent’s name.  If not, then the student will need a creditworthy co-borrower to apply for a private loan. Any co-borrower assumes responsibility for the loan should the borrower fail to repay.

When researching and comparing lenders, we suggest that families consider the following:

• What is the interest rate?
• Is the interest rate fixed or variable?
• When is interest capitalized?
• Do you offer interest rate reductions for auto-debit payments?
• Do you charge any fees?  If yes, are the fees deducted from the disbursements? Are they added to the total loan amount?
• Do you offer flexible repayment options?
• Are in school payments required?
• May I request a deferment or forbearance after I leave school and enter repayment?
• Can I talk to a customer service person, not an automated system?  Can I email customer service questions/concerns? Remember that you will have a long relationship with the lender you choose, so make sure you are comfortable with the level of service they provide.
• Do you have a history of selling the loans?

College of the Holy Cross Loan

An institutional loan program offering a fixed interest rate to students who demonstrate financial need.  The loan is offered by the Office of Financial Aid based on demonstrated financial need, and the program is administered by the College with a limited amount of funds available each year.  

Amount you can borrow: Holy Cross students are offered up to $6,800 over four years.
Interest rate: 6%
Repayment terms: Repayment begins when your three-month grace period — discussed on your Holy Cross Loan Master Promissory Note — ends. You have up to 10 years to repay the loan in full.
For more information: See the College of the Holy Cross Loan Information.

Federal Work Study

Federal Work-Study is a federally subsidized employment program in which eligible students are placed in part-time jobs on campus. If you're offered Federal Work-Study as part of your financial aid, you could earn as much as $2,400 during your first year.

How Does It Work?

You'll be paid directly on a weekly basis for the hours you've worked. These funds are not deposited in your student account to reduce direct charges, tuition, housing, food plan, or fees. They are intended to help defray your indirect costs, such as personal expenses, travel and books.

Although wages from work-study are not deductible from your semester bill, you may arrange with the Bursar to use weekly earnings in partial payment of direct semester charges. You may also arrange for your work-study wages to be deposited directly into your personal checking account. For more information on direct deposit, see the Banking at Holy Cross section on the Student Accounts page.

First-year students eligible for Federal Work-Study are placed in Dining Services.  However, returning students may obtain a work-study position in any number of capacities across campus.  All student employment opportunities are posted on the Human Resources website.  There are also additional opportunities to work in off-campus community service jobs as approved by the Office of Government and Community Relations.