Work Study & Loans

Work Study

The Federal Work Study (FWS) Program provides funds for part-time employment on campus to assist students with the cost of their education.

  • Need-based program.
  • Eligible students must be enrolled in at least six credit hours.
  • Employment is part-time and Allen College students work an average of 10-15 hours per week.
  • Contact the Student Financial Services Office (FinancialAid@electronic-fittings.com) to determine eligibility and work study job placement opportunities.
Loans

Loans are a form of financial aid that must be repaid with interest.

  • The student's financial aid package may include need-based and/or non-need-based loans. 
  • The student can select which items in the financial aid package to accept; therefore, may choose to decline or reduce the loan amount to better fit the student's needs and reduce the student's loan debt. 
  • Some types of loans have maximum limits; students are advised to only take out loans that are absolutely necessary to further their education. 
  • FAFSA results determine eligibility based upon need.

If you borrow federal student loans, entrance counseling and a master promissory note (MPN) must be completed at www.studentaid.gov prior to loans disbursing. Exit counseling will be required upon graduating or dropping below half-time enrollment and is also completed at www.studentaid.gov.

Repayment of Loans:

Some student loans are serviced by Allen College.

  • Payment on these student loans is reported to Allen College by various agencies.
  • Allen College is required by law to contact and make collection efforts for these student loans incurred while at Allen College.
  • Your payments directly relate to the future availability of loans for future students. Therefore, we make every effort to help you keep your loan current.

NOTE: Student loans are NOT dischargeable or forgivable under bankruptcy. Once the bankruptcy has been completed, your loans will be placed into repayment. Your loan will be an outstanding debt until it is paid.

Types of Loans

Federal Direct Loans

Federal Direct Loans: Subsidized & Unsubsidized

Students who accept a Subsidized and/or Unsubsidized Direct loan must:

Interest and deferment information is available at http://studentaid.ed.gov.

Federal Direct Subsidized Loan

  • Need-based as determined by the FAFSA results.
  • The government pays the interest while the student is attending school at least half-time. The student pays the interest when not attending school at least half-time. 

Federal Direct Unsubsidized Loan

  • Not need-based. 
  • The student is responsible for all interest costs from the time the loan is disbursed.
  • The student has the option of paying or deferring the interest while they are in school at least half-time. 

Maximum Loan Limits

Default Rate

Federal PLUS Loan

Federal PLUS Loans: Parent & Graduate Student

  • Available to graduate or professional degree students or parents of dependent undergraduate students.
  • Not need-based.
  • The borrower is responsible for all interest costs from the time the loan is disbursed.
  • Repayment can be deferred until the student completes school, or it may begin within 60 days after the loan is fully disbursed.
  • If a PLUS Loan is requested, it must be applied for on a separate application. A credit check will be conducted. Go to www.studentaid.gov to complete a PLUS application and master promissory note and obtain interest and repayment information.
Federal Nursing Student Loan (NSL)

Federal Nursing Student Loan (NSL)

  • Need based.
  • Interest free while the student is attending school at least half-time.
  • If a Federal NSL is listed as part of the student's financial aid award package, the student will receive an electronic packet of documents, including an application/promissory note that must be completed and returned to the Financial Aid Office before the loan can be disbursed.
  • NSL needs to be repaid beginning nine (9) months after the student graduates or leaves school.
  • Interest is 5%.
Nurse Faculty Loan Program (NFLP)

Nurse Faculty Loan Program (NFLP)

  • Federal loan cancellation program with a service obligation for recipients.
  • This loan is only available to students in the DNP or EdD programs that intend on teaching full-time in a fully accredited nursing program.
  • To apply for the loan, contact the financial aid team at FinancialAid@electronic-fittings.com.
  • The student will receive an electronic packet of documents, including an application/promissory note that must be completed and returned to the Financial Aid Office before the loan can be disbursed. 

Learn more about NFLP

Alternative Student Loan

Alternative Student Loan

  • These are private loans and are not need-based.
  • Students determine the right lender for their situation.
  • Based on credit worthiness and ability to repay.
  • Available to the student, but many require a credit worthy co-signer.
  • Many lenders offer deferment of principal payments while the student is enrolled.
  • Look at a historical list of alternative student loan providers to review and compare terms and conditions prior to borrowing. 

Lender List Disclosures

Allen College utilizes the FASTChoice tool.

  • Students may borrow from any lender they choose and are not required to use a lender on the FASTChoice site.
  • The lenders on FASTChoice were selected based on historical review of who Allen College students have used in the past two years.
  • Allen College follows the Iowa loan code of conduct for post-secondary institutions.

Maximizing Federal Financial Aid First

Student are encouraged to borrow the maximum amount of federal financial aid first before seeking out an alternative student loan.