Educational Loans

The lenders and loan options presented in FASTChoice were selected for the excellent terms and benefits they provide to borrowers. Our institution has worked with these lenders in the past, and previous borrowers had positive experiences working with them.

To determine which lenders and loan options to present, we use strict criteria based on your interests and not those of our institution. We recognize only those lenders who provide you with exceptional customer service, excellent incentives (e.g., borrower benefits, life of loan servicing), timely processing, and electronic funds transfer capabilities.

All of the information provided on the Loan Options page is reviewed annually to ensure that the benefits that lenders offer continue to adhere to our criteria. Any loan options that no longer adhere to our criteria are removed, and new loan options that meet our criteria are added. At least three lenders will be presented to you at all times.

You are free to select any lender and loan option, including those not presented. If you choose a lender that is not presented, please follow the provided instructions to complete the application process. Application processing will not be delayed unnecessarily if you choose a lender not presented.

We maintain professional relationships with all lenders. Our officials are prohibited from accepting financial or other benefits in exchange for displaying lenders and loan options in FASTChoice. These include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution's financial aid office; allowing lenders to place our institution's name or logo on any of their products; and owning lenders' stock (for those college officials who make loan decisions for our institution).

Students attending at least half-time (6 credit hours for undergraduate students and 4 credit hours for graduate students) are eligible to borrow from the subsidized and/or the unsubsidized Federal Stafford Student Loan Program. The interest rate is fixed at 6.8% for new loans as of July 1, 2006. The interest on a Federal Subsidized Stafford Loan will be paid by the federal government while the student is enrolled at least half-time. In the Unsubsidized Stafford Loan program the interest is paid by the student while attending school, or can be deferred.

The Notification of Financial Aid Award will list the estimated amount the student is eligible to borrow based on enrollment status and academic level. First-time borrowers are required to complete entrance loan counseling before loan funding may be received. First-time borrowers must then sign a Master Promissory Note in order to receive Federal Stafford loan proceeds. Promissory notes are your promise to repay your loan. They are legal documents that describe your rights and obligations when you accept a federal loan.

Click here to begin the process by completing entrance loan counseling. Once completed you may view the lenders using FASTChoice. The lenders display their borrower benefits and students may use the loan calculator to see savings offered by lenders. Once a lender has been selected you may complete your Stafford Master Promissory Note online. Completion of the Master Promissory Note will prompt a request to certify Federal Stafford loan eligibility in the financial aid office.

We maintain professional relationships with all lenders. Our officials are prohibited from accepting financial or other benefits in exchange for displaying lenders and loan options in FASTChoice. These include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution's financial aid office; allowing lenders to place our institution's name or logo on any of their products; and owning lenders' stock (for those college officials who make loan decisions for our institution).

If you have already completed entrance counseling and have not yet selected a lender and completed your online Master Promissory Note please click here to view FASTChoice.

The Total Loan Maximum for Combined Subsidized and Unsubsidized Federal Stafford Loan Programs are as follows: Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized) Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized) Graduate and Professional Students: currently $138,500 (no more than $65,500 of which can be subsidized)

Under certain circumstances, borrowers have the right to defer (postpone) repayment of loans or request a temporary delay or reduction of scheduled loan repayments. The most common deferment occurs while you are enrolled at least half-time at an eligible school. Additional information regarding special repayment arrangements is described in your Master Promissory Note and will be included as part of your required loan exit interview.

Exit counseling is required when Federal loan borrowers drop below half-time enrollment or leave school. Exit counseling may be accomplished over the internet here.

A limited number of students who demonstrate exceptional financial need are awarded the Federal Perkins Loan. The Perkins Loan Program is funded by both Otterbein College and the federal government. Interest is not charged while the student is enrolled at least half-time (6 credit hours per quarter). Repayment at 5% interest begins nine months after graduation or termination of at least half-time enrollment. The completion of all paperwork and the signing of the Master Promissory Note (MPN) can now be completed online, the link below will take you to the online procedure.

Online Federal Perkins Loan Master Promissory Note (MPN)
First-time borrowers must sign a Master Promissory Note in order to receive the Federal Perkins Loan disbursements. Promissory notes are your promise to repay the Federal Perkins Loan to Otterbein College. They are legal documents that describe your right and obligations when you accept a federal loan. You may click here  to complete your MPN and entrance counseling online. This will take you to our Perkins Loan billing service ECSI's secured website. Once you have competed all the paperwork your loan will be disbursed directly to your student account.  You will then receive by email from ECSI the Federal Perkins Loan Disclosure Statement indicating the amount of loan disbursement.   If you have any questions about this process please call Deborah Runyon in the Business Office at 614-823-1949.

Online Federal Perkins Loan Exit Interview option
Federal Perkins Loan borrowers are required by Federal Regulations to complete an Exit Interview upon graduation, or withdrawl from Otterbein College, transfer to another school, or if you drop below half-tim (6 hrs). You may call the Business Office at 614-823-1949 to set up an appointment for an Exit Interview or you may complete your Exit Interview online. You may click here to complete the Exit Interview online, if you have difficulty completing your exit online please contact the Business Office at 614-823-1949 or ECSI at 1-800-549-3274.

Federal PLUS Loans are for a student's education, but the loan is made to parents. This loan is available to parents with a good credit history. Since these loans are not subsidized, the parent borrower must repay the amount borrowed plus interest. The annual loan limit is the student's cost of education minus any estimated financial aid received. This loan may be borrowed in addition to the student subsidized or unsubsidized Federal Stafford, but the total amount borrowed cannot be more than the total cost to attend school. For the purposes of determining PLUS loan eligibility, a parent is a student's biological or adoptive mother or father. The spouse of a parent (the student's stepparent) who has remarried is also eligible to borrow a PLUS on the student's behalf. A legal guardian is not considered a parent for student financial aid purposes.

We strongly suggest that you view the borrower benefits listed using FASTChoice to view the potential savings offered by the lenders.  These lenders have been chosen because they deliver superior customer service and outstanding savings. We encourage parent borrowers to research each lender thoroughly.  

The parent borrower must then sign a Master Promissory Note (MPN) in order to receive Federal Plus loan proceeds. Promissory notes are your promise to repay your loan. They are legal documents that describe your rights and obligations when you accept a federal loan.

If the parent is credit approved, a certification request will be sent to the Financial Aid Office.
First time parent borrowers click here to view FASTChoice and complete your Online Master Promissory Note.
Repeat parent borrowers click here to view and print the 2008-2009 Federal Loan Request Form. This form should be completed and mailed to the Financial Aid Office. Receipt of this form indicaties your intent to borrow again through the Plus loan program.

If the Stafford Loan is not enough to met your student’s cost of education, many parents are faced with the question of how to finance the rest of the students’ education. While savings, retirement funds or home equity loans are viable options, many parents prefer to borrow and /or co-sign with their student on a private loan. Private loans may not be the best solution for your family. Before making your decision, please take a moment to consider the compelling differences between applying for a PLUS loan over co-signing for a private loan.
Click here to view our comparision sheet.

The Financial Aid Office maintains information regarding other sources of education loans to undergraduate and graduate students. These loans are consumer-based and credit history is a factor in determining eligibility. Private (alternative) loan programs are designed to bridge the funding gap when savings, grants, federal loans, and other resources are not enough or simply not available. Repayment is simplified by borrowing with the same lender throughout your college career.

When borrowing money for college expenses, you want to get the most out of what you borrow and you want to borrow on the best possible terms. So, when considering a private loan to help finance your education, you probably don't want to just rush into the first one you find. FASTAlt Solutions provides you with information you need to make an informed decision on specific loan programs and various lenders. It is important to find the one that is the right fit for you.

The inclusion of a loan program or lender on this site does not imply endorsement. Although we have narrowed the list to certain lenders, we do not endorse any alternative loan programs or lenders. Note that information is subject to change at any time, and we are not responsible for the content of lender websites. Contact lenders directly to confirm details or get current information.

Please click here to go to FASTAlt Solutions.  Here you can learn more about private  loans, find details about different lenders and loan programs, and select the loan that's right for you.

To apply for a private loan click here to go to FASTChoice.

The United Methodist Loan Program is a churchwide educational service providing scholarships and loans to help supplement the financial needs of today's students. An applicant must be an active, full member of a United Methodist Church for at least one year prior to applying, a citizen or permanent resident of the U.S., admitted to a degree program and maintain at least a C average. Loans of up to $5,000 are made per calendar year (January 1 - December 31) at 5% interest. Students taking at least one half the required number of hours for full-time status may borrow up to one-half the amount available to full-time students. Additional information is available in the Financial Aid Office or at www.gbhem.org.

Consolidation loans are available to borrowers who have completed their education and whose loans are in their grace period or repayment. This loan can help you simplify loan repayment by combining several types of federal student loans with various repayment schedules into one inclusive loan. The repayment process is simpler because you make only one payment a month with an extended repayment (based on the amount consolidated) of up to 30 years. Also, the interest rate on the consolidation loan might be lower than what you're currently paying on with one or more of your loans. Since extended repayment could cause a much longer repayment term, you will likely have significantly higher costs over the life of the loan and you may lose eligibility for certain deferments and borrower benefits. Consolidation of student loans can be an important financial decision, so borrowers should contact their guarantor, where the advantages, disadvantages, and procedure for consolidating can be thoroughly explained. Visit the Great Lakes Educational Loan Services, Inc. site for more information.