Award Information: Loans

Eligibility for grants and scholarship is determined before loans are awarded. Your Award Letter displays the maximum amount of federal and state grants as well as institutional scholarship, all based on financial need as determined by the Free Application for Federal Student Aid (FAFSA). Grants and scholarship do not require repayment.

Federal student loans are awarded as an optional opportunity to assist in meeting your educational costs for the applicable award year. The student loans displayed on your financial aid award letter are generally the maximum amounts of federal student loans which you, may borrow this academic year, based on your annual loan limits and your educational costs.

Please contact us well in advance of registration if you wish to reduce the amount you are borrowing by paying more in cash. Or if you are a dependent student who wishes to further decrease your payment to the University by using the Federal PLUS Parent loan, please contact us right away.

1. To receive these loans, you must learn about your rights and responsibilities by reading the enclosed materials.
2. Go to www.StudentLoans.gov (SIGN IN using your FAFSA ID) to fill out the Master Promissory Note (MPN) for “subsidized/Unsubsidized” federal student loans. You must do this before you will be able to complete your initial semester registration at the University.
3. Undergraduates awarded a Federal Perkins Loan receive a summary of the rights and responsibilities along with the Award Letter. Review this form, add contact information, and bring this form to your initial registration at the University, where the Master Promissory Note (MPN) will be available for your review and approval.
4. Please contact us for any questions or clarifications, at (641) 472-1156 or email
5. Once you begin borrowing, you must notify your lenders within ten days of an address change.
6. Upon departure from the University for any length of time other than a normal summer or winter break, you must visit the financial aid office for a Federal Student Loan Exit Interview to learn more about your repayment options.

These are legal loans that must be repaid. Repayment begins six to nine months after your enrollment status drops below half-time. Except PLUS loans start repayment 45 days after enrollment ceases.

Frequently asked questions

How much am I borrowing? – The amounts you are borrowing are specified on your financial aid award letter each year (Direct Loans also have additional fees – see below). You will also be confirming the loan amount at each semester registration. In addition, when the loan is disbursed you will be notified so that you have the right to cancel the loan, if you choose to pay cash instead. Each loan program has a separate Master Promissory Note (MPN). The MPN will cover all amounts of loans under that loan program during all your years of study while you attend Maharishi International University.

What is the difference between subsidized and unsubsidized loans? – Subsidized loans do not accumulate interest while you are enrolled at least halftime in college. Unsubsidized loans accrue interest while you are in school. Examples of Subsidized loans are Perkins and Direct Subsidized. Unsubsidized loans are PLUS, Direct Unsub, and private educational loans. For Direct Subsidized loans, the interest subsidy lasts a maximum of 150% of your degree pursuit (6 years undergraduate).

How much is the interest? – The interest rate is fixed at 5% for Perkins loans. Federal Direct Loans have interest rates which are set on July 1, for loans borrowed during that new academic year. For 2016-17, undergraduate Subsidized and Unsub Direct loans have an interest rate set at 3.76%, and 5.31% for graduate students. Federal Direct PLUS loans are 6.31% interest for 2015-16.

Do I have to pay the interest on unsubsidized loans while I am in school? – You have the choice whether to pay the interest while you are in school, or to allow the interest to accumulate while you are in school. If you choose not to pay the interest while in school, it is capitalized when you enter repayment.

Are there any loan fees? – The amount listed on your Award Letter and your registration forms are after the fees have been deducted. Direct. Subsidized and Unsubsidized loans disbursed after Oct 1, 2015 and before Oct 1, 2016, have a 1.068% fee and for PLUS loans a 4.272% fee.

What is the source of the loan funds? – Federal student loan funds are authorized by congress and regulated by the US Department of Education. Federal Perkins loans are administered at Maharishi International University’s Perkins Office, while Federal Direct loans are administered by the US Department of Education in conjunction with private agencies who assist with repayment.

What will my payments be? – The amount will vary depending on how much you borrow. Below is a sample chart based on typical federal student loans for a dependent student attending four years (repaying in ten years at about $282/mo):

Federal Perkins Loan (4 yrs at $2,000/yr) $ 8,000
Federal Direct Stafford Subsidized Loan (4 yrs) $19,000
Federal Direct Stafford Unsubidized Loan (4 yrs at $2,000/yr) $ 8,000

Graduate students: (one year of Unsub and PLUS loans) $25,000 (about $288/month repayment)

What other factors influence the repayment amount? – The Federal Perkins loan program is due end after the 2017-18 award year. Independent undergraduate students have additional loan eligibility which could add $18,000 more debt over four years (additional $175 per month repayment). Students may take longer than four years to complete an undergraduate degree or more than one year in graduate programs, or participate in higher cost graduate programs.

When does repayment start? – Federal Student Loans do not begin repayment until after you stop enrollment, and then after your grace period. Perkins has a 9 month grace period, Direct Sub and Unsub loans have a 6 month grace period and Direct PLUS loans have a 45 day grace period. In addition, there are deferments to postpone repayment during periods of low income as well as repayment plans based on your income level, with forgiveness or write off after ten to twenty years. All your federal student loans are itemized at www.StudentLoans.gov along with multiple repayment plan options.

How are Perkins loans unique? – The income based repayment and forgiveness options available to Direct Loan borrowers are available to to Perkins borrowers only if the Perkins loans are consolidated with the Direct Loans after enrollment. The Federal Perkins loan program is due end after the 2017-18 award year.

Maharishi International University maintains a Code of Conduct regarding student loans, which can be viewed here.

Loan disbursement process

1. The loan amounts displayed on your Award Letter is the amount which is disbursed to the school. Some loans have additional fees which are kept by the lender before the loan is disbursed. These fees increase the amount you are borrowing.
2. The amount listed on the award letter is the amount available to be applied toward the University charges. If the total amount of available financial aid exceeds the University charges, your award letter will display the amount of cash you will receive to use toward your educational expenses, such as books, other living expenses.
3. We will provide instructions to you about which loan forms are required and where they are submitted. We will also contact you if any additional information or clarification is required.
4. After you have registered and begun attending classes, we will activate the disbursements (if you have completed all the other financial aid requirements) and credit the funds to Student Accounts, where your University charges and your disbursed financial aid is itemized.
5. If your award letter says “Refund after payment of charges,” this is the amount you are scheduled to receive after all the financial aid has been disbursed. If your award letter says “Payment by student,” then you must make tuition payments, and you will not have loan funds for books or other living expenses.
6. It usually takes two weeks after your initial semester registration for the semester financial aid to be disbursed to Student Accounts, provided you have already met all the financial aid requirements which we have asked of you.
7. If there is a credit balance after the disbursement of all the semester financial aid, you will receive a deposit to your personal checking account, usually in three payments to you (33% of your expected semester refund at the end of three weeks of attendance; 33% at the end of seven weeks of attendance, and 33% at the end of twelve weeks of attendance). See the Financial Aid Refund page for additional information on the process and schedule.
8. Your federal student loans will be listed along with the name of the service company, and repayment estimators individualized to your loan debt at www.StudentLoans.gov

Federal Student Loan Tracking

Your federal student loans records are tracked through all your college enrollment at all the colleges you attend, at one central location which you can access, using the same user ID and password used for your FAFSA.

Also available is a calculator for viewing all the different repayment options. Before you leave Maharishi International University for any extended period of time, you are required to visit the financial aid office for a federal student loans exit interview to go over all this repayment information.