Loan Disbursements

General Requirements for Federal Stafford, Parent PLUS and Grad PLUS Loan Disbursements

 


Loan disbursements are made on a scheduled basis.  The loan disbursement dates are provided on the disclosure statement that a loan borrower will receive from the Department of Education Loan Origination Center.  However, the release date of a borrower’s loan funds at the college or university may vary from that.  For Baker College students, please contact the Financial Aid Office at the campus you are enrolled at for any questions.


 

Disbursements for Returning Student Loan Borrowers:

 

  • Students must be attending at least half time (six credit hours for undergraduate and four credit hours for graduate).  Attendance will be taken for each class students are enrolled in.
  • Student loans that are received during fall, winter and/or spring quarters may affect your eligibility to receive loan funds for summer. If you are planning to attend summer quarter, and want to ensure you will have remaining loan funds available, you should borrow conservatively. Contact the Financial Aid Office for further details.
  • One quarter only loans must be paid in two equal disbursements. The second disbursement of a one quarter only loan cannot be paid until after the half way point of the quarter and attendance has been verified.
  • Students registered for online, five-week or other non-traditional class formats:  The disbursing and refunding of loan funds may be delayed due to the various start dates of the registered courses.

 

Disbursements for First-Time Student Loan Borrowers:

 

If a student is in the first-year of an undergraduate program and is a first-time borrower, there is a required delay in making the first disbursement on a loan.

  • Required delay in making disbursements to first-year, first-time borrowers - If a student is in the first year of an undergraduate program and is a first-time Direct Loan borrower, Baker College may not disburse the first installment of the Direct Loan until 30 calendar days AFTER the student’s actual attendance begins.
  • Half-time attendance must be proven after the 30 day time period and could take up to seven additional loan processing days before enrollment can be verified and the loan funds released and posted to the borrower’s account.  Also, along with attendance students must maintain Satisfactory Academic Progress (SAP) to receive loan funds.  Contact the Financial Aid Office if you are unsure of your eligibility.
  • Federal regulations require ALL first time Stafford Loan borrowers to complete entrance loan counseling before loan funds can be disbursed.  Please visit:  Entrance Loan Counseling to complete this requirement. 
  • Student loans that are received during fall, winter and/or spring quarters may affect your eligibility to receive loan funds for summer.  If you are planning to attend summer quarter, and want to ensure you will have remaining loan funds available, you should borrow conservatively.  Contact the Financial Aid Office for further details.
  • One quarter only loans must be paid in two equal disbursements.  The second disbursement of a one quarter only loan cannot be paid until after the half way point of the quarter and attendance has been verified.
  • Students registered in online, five-week or other non-traditional class formats:  The disbursing and refunding of loan funds may be delayed due to the various start dates of the registered courses

 

Disbursements for Parent PLUS Loan Borrowers:

 

  • Only a parent may apply for the Federal PLUS Loan. A parent is defined as a biological, step or adoptive parent whose information is included on the Free Application for Federal Student Aid or a biological parent whose information is not included on the Free Application for Federal Student Aid.
  • The PLUS Loan is a credit-based loan. If the Federal PLUS Loan is denied, the parent should contact the Financial Aid Office for further assistance.
  •  When requesting this loan, the parent authorizes the Department of Education to investigate their credit record and report information about the loan status to persons and organizations permitted by law to receive that information.
  • Students must be attending at least half-time and must maintain Satisfactory Academic Progress (SAP) to receive Federal PLUS Loan funds. The student should contact the Financial Aid Office if they are unsure of their eligibility.
  • One quarter only loans must be paid in two equal disbursements. The second disbursement of a one quarter only loan cannot be paid until after the half way point of the quarter and attendance has been verified.
  • Students registered in online, five-week or other non-traditional class formats: The disbursing and refunding of loan funds may be delayed due to the various start dates of the registered courses.
  • Repayment of principal and interest begins within 60 days after the loan has been fully disbursed. The parent borrower will receive notice from their lender or servicer when the first payment is due and a monthly statement upon entering repayment.
  • The parent can contact the Direct Loan Servicer for additional repayment options.

 

Disbursements for Graduate PLUS Loan Borrowers:

 

  • Students must be attending at least half-time and must maintain Satisfactory Academic Progress (SAP) to receive Federal Graduate PLUS Loan funds. The student should contact the Financial Aid Office if they are unsure of their eligibility.
  • One quarter only loans must be paid in two equal disbursements. The second disbursement of a one quarter only loan cannot be paid until after the half way point of the quarter and attendance has been verified.
  • Students registered in online, five-week or other non-traditional class formats: The disbursing and refunding of loan funds may be delayed due to the various start dates of the registered courses.
  • Repayment of principal and interest begins within 60 days after the loan has been fully disbursed. The borrower will receive notice from their lender or servicer when the first payment is due and a monthly statement upon entering repayment.
  • Students need to contact their lender for additional repayment options.

Note:  For Baker College loan borrowers, please contact your campus Financial Aid Office for any additional requirements.

When all requirements have been met, the school will credit the loan funds to the school charges on the borrower’s account (tuition and fees, room and board and other authorized charges).  If the loan funds exceed the school charges, the school will pay the student the credit balance. 

Caution:  A student loan borrower may use the excess loan funds received only to pay for the borrower’s education expenses.  Education expenses would include:

  • tuition
  • room and board
  • fees
  • books 
  • supplies
  • equipment
  • dependent child care expenses
  • transportation
  • purchase of a personal computer.

Students will be notified by the Business Office when their loan funds have posted to their account.  If a refund occurs, Higher One will notify the student when funds have been applied to their Baker OneCard.  

  • Please direct any loan refund questions to your Baker College campus Business Office.

 

Baker College and Higher One

 

Baker College has partnered with Higher One, a financial services company, to bring new options to our students.  Baker College students will receive a Baker OneCard.  Your card will arrive in the mail at your primary address on file with Baker.  To receive your refund, you must activate your Baker OneCard.  During card activation, you will choose how to receive your refund money.  If you want faster access to your funds, simply choose to have your refunds deposited directly into your OneAccount.  Activate your card and make your refund selection online at www.BakerOneCard.com.  For additional information on the Baker OneCard please visit the following Baker College web page:  Business Office Baker One Card webpage.

 

Loan Cancellations

 

  • Prior to the loan funds being disbursed, the student may cancel all or part of the loan at any time by notifying the school. 
  • Once funds have been disbursed on the loan, the student may return all or part of the loan to a Department of Education Direct Loan Servicing agent within 120 days of the date the school credited the student’s account or paid the excess loan funds. 

For either type of the above loan cancellations, the loan(s) will be adjusted to eliminate any interest or loan fee amount that applies to the cancelled portion of the student’s loan.  This adjustment will be done by the loan servicer.

The Baker College System
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