What You Need To Know

Federal Direct Student Loans

You must complete the Free Application for Federal Student Aid (FAFSA) to be considered for Federal Direct Loans. Beginning with the 2010/11 academic year, Madonna University will participate in the William D. Ford Federal Direct Loan Program. Students, who previously borrowed Stafford Loans through the Federal Family Education Loan (FFEL) Program, as well as new borrowers, will now receive Federal Subsidized and Unsubsidized Loans through the Direct Loan Program. Under this program, the  U. S. Department of Education lends the money to students through the school.

Loans will no longer be offered through private lenders: banks, credit unions and other lending institutions. When instructed by the Madonna University Financial Aid Office, all new and previous borrowers must complete Entrance Counseling and a Master Promissory Note (MPN). The Entrance Counseling session and the MPN can be completed electronically via the Student Loans website. Please allow 30-45 minutes to complete the Entrance Counseling session and MPN.

You must have an FSA ID to complete the Direct Loan process electronically. To create or edit an FSA ID, visit here. If you created an FSA ID to complete the Free Application for Federal Student Aid (FAFSA) or to access one of the other U.S. Department of Education websites, you will use the same ID to complete the Direct Loan process. For detailed information regarding student loans, visit Applying for Federal Direct Student Loans. 

Private Loan Program

A private loan is a nonfederal, credit-based loan designed to bridge the gap when federal loans and other aid do not cover your cost of attendance.  A private loan when combined with other financial aid cannot exceed the cost of attendance as determined by the University.  To view your estimated cost of attendance, log in to your MY Financial Aid account and select the College Financing Plan from the Menu. 

We encourage all students to apply for federal, state and institutional financial aid by completing the Free Application for Federal Student Aid (FASFA).  You might want to consider a private loan after exhausting all other financial aid options, such as scholarships, grants and Federal Direct Loans.  Learn more about federal loans. 

The lenders included in the ELMSelect Comparison Tool  have recently provided private loans to Madonna University students. You have the right to select any lender for a private loan; the list does not imply endorsement.

There are a number of private loan programs available, and only you can decide which option best fits your financial situation.  Use the ELMSelect Comparison Tool to compare the varying repayment options, terms and conditions. For additional information, please contact the specific lender(s).

Student Loan Consolidation

When considering consolidation of student loans, borrowers should be aware that federal student loan interest rates are subject to change every July 1. You can lock in this low rate for the life of your student loan through consolidation. Of course, rates could go lower and you would be locked out.

Borrowers with federal student loans may choose to consolidate their loans to get a single payment and extend their repayment period. However, borrowers should beware of consolidations that may result in lost benefits. One example is loan forgiveness provision benefits for certain teachers. If a teacher has already consolidated his or her loans, the loan forgiveness provision may not apply. Lower interest rates occur because interest rates on most federal student loans are variable, but the interest rate on a federal consolidated loan is fixed and locked in for the life of the loan. Interest rates on federal Stafford loans are recalculated annually each July 1, and fluctuate with the rate of short-term federal securities.

Federal Regulations state the interest rate on a Federal Consolidation Loan disbursed on or after July 1, 1994 shall be the weighted average of the interest rates on the loans consolidated, rounded upward to the nearest whole percent. If you have student loans that were disbursed before July 1, 1998, your consolidation rate could be higher than 3.37 percent. If the amount of the Federal Consolidation Loan is less than $7,500, the borrower's repayment schedule may not exceed 10 years. If you must consolidate, the best time is during your grace period. This ensures the lowest possible interest rate. To avoid losing any portion of your grace period, enter the grace period end date on the federal consolidation loan application. Don't forget to ask if you will lose any loan forgiveness provisions available to Stafford Loan borrowers.

You can also access your loan history with your federal student aid PIN at Student Access to the National Student Loan Data System (NSLDS). If you don't know who services your loan, contact the U.S. Dept. of Education Student Financial Assistance Ombudsman for help. The U.S. Department of Education offers guidance on student loan consolidation at Federal Stafford Loan Consolidation Information. You can also access your information at Great Lakes Higher Education Corp. 

Exit Counseling

Students who borrowed loans guaranteed through the Federal Family Education Loan Program (FFELP) or the William D. Ford Direct Loan Program must complete Exit Counseling if they graduate, withdraw or attend less than half-time. Exit Counseling is an opportunity for students to review their rights and responsibilities and repayment options. Failure to complete Exit Counseling may result in the withholding of academic records.

You must have an FSA ID to complete Exit Counseling electronically. To create or edit an FSA ID, visit Student Aid. If you created an FSA ID to complete the Free Application for Federal Student Aid (FAFSA) or to access one of the other U. S. Department of Education websites, you will use the same ID to complete Exit Counseling. Start Exit Counseling, go to Student Aid, Sign In, click on Complete Counseling and select Exit Counseling. Please allow 30 minutes to complete Exit Counseling. The results of your counseling session will be forwarded to Madonna University.

Loan History and Repayment

Use this guide for help to understand and manage your student loans.


The Ombudsman Group is dedicated to helping resolve complaints related to the federal student aid programs, including Direct Loans, Federal Family Education Loan (FFEL) Program loans, Perkins Loans, and grant programs. Click here for more information.