Loans

Loans differ from grants and scholarships in that they must eventually be repaid, often with interest and additional fees.

Loans are an invaluable resource for many students and their families to finance a college education. Borrowing a loan allows students and families to use future income to pay for education today. Repayment of student loans is often deferred until after the student graduates, withdraws or enrolls on a less than half-time basis. Terms of repayment vary depending on the type of the loan, but generally repayment lasts up to 10 years, depending on amounts borrowed.

Federal student loans are available to you and to your parents, regardless of income, and provide a range of flexible repayment options that are not always available from other sources.

NOTE: Acceptance of any loan carries an obligation to repay; before you take out a loan to finance any part of your Scripps College education, you should carefully compare loan programs and consider the total amount of money and the repayment requirement for which you will be responsible after you complete your education. You are not required to borrow the full loan amount you are awarded in your financial aid offer; you should only borrow as much as you feel your unique circumstances require.

Your financial aid package from Scripps may include one or more of the following types of loans:
You may also wish to apply for:

Scripps College Annual Loan Limits

Scripps College invests significant funds in need-based grants to ensure that students do not leave school with overly burdensome debt.  Students entering Scripps College in the 2015-2016 year and beyond will be packaged with following need-based loans over the course of each of their four years at the college.

Year in School Need-Based Loan Amount in Financial Aid Package
 First $3,500
Second $4,500
Third $4,500
Fourth $5,500

Under federal regulations, you may be eligible to borrow additional amounts of Federal Direct Loans that are not included in your initial financial aid award. Please see the chart below to understand your maximum federal student loan eligibility. 

Federal Direct Loans

You may be eligible for one or more of these long-term, low-interest loans to students and parents, which are made by the U.S. Department of Education. Federal Direct Loans are paid directly to Scripps to cover your tuition and fees, as well as any room and board charges billed through the college. Any remaining funds will be delivered to you or your parent (in the case of a Parent PLUS loan) for other educationally related expenses.

Subsidized and Unsubsidized Federal Direct Loans

  • Subsidized Federal Direct Loans are loans on which the federal government pays the interest that accrues as long as you are in school at least half time; during the six-month grace period after you graduate, withdraw, or cease to attend school at least half time; and during approved deferments.
  • Unsubsidized Federal Direct Loans are loans on which interest begins accruing as soon as the loan is taken out and continues to accrue during the six-month grace period after you graduate, withdraw, or cease to attend school at least half time, as well as during any periods of deferment.
Eligibility

Federal Direct Loans are available to US Citizens and eligible non-citizens.  Subsidized Federal Direct Loans are need-based and may not be used to cover your Estimated Family Contribution (EFC). Unsubsidized Federal Direct Loans are available regardless of need and may be used to cover your EFC.

Federal Annual Loam Limits

Under federal regulations, the maximum amount of subsidized and unsubsidized Federal Direct Loan you may receive as a federally dependent student  per academic year is as follows:

Year in School Subsidized Maximum Unsubsidized Maximum Combined Maximum
First $3,500 $2,000 $5,500
Second $4,500 $2,000 $6,500
Third $5,500 $2,000 $7,500
Fourth $5,500 $2,000 $7,500

If you are considered federally independent—or if your parents are ineligible to participate in the Federal Direct Parent PLUS Loan program—you may borrow the following additional amounts:

Year in School Subsidized Maximum Unsubsidized Maximum Combined Maximum
First $3,500 $6,000 $9,500
Second $4,500 $6,000 $10,500
Third $5,500 $7,000 $12,500
Fourth $5,500 $7,000 $12,500

Your financial aid award will include a suggested Federal Direct Loan amount; if you wish to borrow an amount in excess of that number—up to your full combined maximum per year—you should contact the Financial Aid Office for further information. If you are a first-time borrower, you must also complete a Master Promissory Note and Federal Direct Loan Entrance Counseling online at studentloans.gov.

Interest Rates, Fees and Repayment

Each July 1, the federal government establishes a new interest rate for loans made that academic year. Once established, the interest rate is fixed for the life of that loan. An origination fee is deducted from each disbursement—i.e., each time a payment is made to Scripps on your behalf—and withheld from the loan by the federal government to offset the cost of the program.

To reduce the cost of your unsubsidized loan, consider making in-school interest-only payments. If you would like to make in-school interest payments, please contact your loan server. Please note that Scripps does not automatically package students with Direct Unsubsidized Loans. If you are interested in receiving this loan, please contact our office for more information.

Repayment generally lasts 10 years, but may be extended based on amounts borrowed.

Application and Loan Disbursement

If you are a first-time borrower, you must complete a Master Promissory Note (MPN) and Federal Direct Loan Entrance Counseling online at studentloans.gov. In addition, you will need to accept your Federal Direct Loan award in your My Financial Aid portal. Once your award has been accepted on the portal and your MPN and Loan Entrance Counseling have been approved, the financial aid office will originate your loan.

Loans are disbursed in two equal installments not earlier than 10 days before the start of each semester for eligible students.

Federal Direct Parent PLUS Loans

A Federal Direct Parent PLUS Loan is a low-interest, long-term loan that your parent may borrow to pay for up to the full cost of your education, less any financial aid you receive. These funds may be used for tuition, fees, books, room, board or other educational expenses. Funds in excess of these costs will be released either to you or to your parent, as designated by the borrower.

Federal Direct Parent PLUS Loans are available to all families that meet the eligibility requirements, regardless of your financial needs.

Eligibility
  • Federal Direct Parent PLUS Loans are available to parent borrowers (biological parents, adoptive parents, and stepparents).
  • More than one eligible parent may apply.
  • Eligible borrowers must be U.S. citizens or eligible non-citizens, and must not have an adverse credit history as determined by the U.S. Department of Education.
  • Parent borrowers who fail to meet the established credit criteria may appeal the decision or may apply with an endorser (co-borrower) who does meet the credit criteria.
    • Parents who establish eligibility by virtue of an appeal or an endorser must complete online counseling at studentloans.gov.
Interest Rates, Fees and Repayment

Each July 1st, the federal government establishes a new interest rate for loans made that academic year. Once established, the interest rate is fixed for the life of that loan. Interest on the Federal Direct PLUS Loan begins to accrue at disbursement—i.e., each time a payment is made to Scripps on your or your parent’s behalf—and an origination fee is deducted and withheld from the loan by the federal government to offset the cost of the program.

Loans are disbursed in two equal installments not earlier than 10-days before the start of each semester for eligible students. The first scheduled payment is due 60 days after the full disbursement, but may be deferred while you are enrolled in school at least half-time. These loans have a 10-year repayment term, with no prepayment penalty. Repayment periods may be extended based on amounts borrowed.

Application

 To be considered for a Federal Direct Parent PLUS loan, you and your parents must:

Once your loan is approved and your promissory note accepted, the federal government will notify Scripps College electronically and we will originate your loan.

Private Educational Loans

You may also consider taking out a private educational loan for your education. Please note that private or alternative loans are not federally guaranteed and should only be considered after your eligibility for all other types of aid—including Federal Direct Loans and Federal Direct Parent PLUS loans—has been exhausted. In addition, the repayment terms of federal loan programs are generally more favorable than the terms of private loans.

Private student loans may not be included in Federal Direct Consolidation Loans and are not eligible for the Federal Income-Based Repayment Plans or for Federal Economic Hardship Deferments.

The interest rates and origination and repayment fees for private loans vary and are set by the lender. Most private lenders require a co-signer, with interest rates based on the credit-worthiness of the borrower and/or co-borrower. The interest rate may vary on a monthly or quarterly basis and may not have a maximum rate.

Rules for repayment and deferment vary from lender to lender, although repayment generally begins after full disbursement. Some lenders may defer repayment during periods of at least half-time enrollment and economic hardship; however, interest will continue to accrue on the loan from the date it is disbursed.

Scripps College does not recommend or promote any individual lender or loan product. We provide no preferred lender list but, instead, suggest you visit the ELM Select website for more information. ELM Select will provide you with a list of lenders who have made loans to Scripps College students over the past three years.

We encourage you and your family to compare these loan programs carefully before selecting a lender and to borrow only as much as is necessary.