Financial Aid

Financing Options - Additional Loan Choices

Butler University is pleased to offer several opportunities to help all families maximize the resources they have set aside to invest in a Butler education. Payment options and educational loans allow families to make personal choices regarding the balance that remains after financial aid.  Financing options are available to all families, even those who do not apply for financial aid.

Education Loans

  • Students and parents who wish to borrow from any of the loan programs must determine their borrowing needs for the entire academic year before beginning the application process.
  • Families should exhaust Federal Direct Loan eligibility before borrowing private education loans and Federal Direct PLUS Loans as the terms and conditions are more favorable.
  • Education loans must be applied for each academic year.
  • Educational loans can only be processed by the school in the academic year or semester for which they are intended. Loans will be processed by Butler University up to the last day of classes. For example: Fall 2012, the last day of classes is December 7, 2012; Spring 2013, the last day of classes is April 29, 2013.
  • Once the loans are approved and certified by the Office of Financial Aid, funds will disburse to the student's account after the fifth day of class each semester, as long as, the required documents have been completed and submitted to the appropriate office. Loan funds will be applied to fall and spring semester enrollments, with half of the annual value crediting to the student account each semester.

Federal Direct PLUS Loan

A low-interest loan available to credit-worthy parents of dependent students enrolled at least half-time at Butler University in a degree seeking program. Through this program families may borrow additional funds to meet the educational expenses and maximize family resources.

  • The interest rate on this loan is fixed at 7.9%.
  • A processing fee of 4% will be assessed on all Federal Direct PLUS Loans.
  • Repayment of the loan typically begins 60 days after the loan is fully disbursed. There is no grace period; therefore interest begins to accumulate after the first disbursement is made. Deferment options are available.
  • Families are required to file the FAFSA and apply for the Federal Direct PLUS Loan online at www.studentloans.gov.
  • The Office of Financial Aid will process a Federal Direct PLUS Loan upon notification that the loan application has been approved by the Direct Lending program.
  • The Master Promissory Note (MPN) must be signed by the parent prior to funds being disbursed to the student's account.
  • The parent borrower must use their Federal PIN (same PIN used to sign the FAFSA) to apply for the Federal Direct PLUS Loan.

Using the parent's federal PIN - Apply for the Federal Direct PLUS Loan now

Federal Direct PLUS Loan for Graduate Students

Under the Federal Direct PLUS Loan program, graduate students may borrow up to the difference between the cost of attendance and all other financial aid, including Federal Direct Loans. The loan is not based on need and the graduate student must have a good credit history.

  • The interest rate for the Federal Direct PLUS Loan for Graduate Students is a fixed interest rate of 7.9%.
  • Repayment of the loan typically begins 60 days after the loan is fully disbursed with no grace period.
  • Interest begins to accrue after the first disbursement is made. Students may contact the U.S. Department of Education (DOE) for additional information and deferment options.
  • A processing fee of 4% will be assessed on all Federal Direct PLUS Loans.
  • Students are required to file the Free Application for Federal Student Aid (FAFSA).
  • The student borrower must use their Federal PIN (same PIN used to sign the FAFSA) when applying for the Federal Direct PLUS Loan for Graduate Students at www.studentloans.gov.
  • Students must be enrolled a minimum of 4.5 credit hours to be eligible for the loan, beginning with the Fall of 2012.

Using the student's federal PIN - Apply for the Federal Direct PLUS Loan for Graduate Students now

Private Loans

  • Be sure to exhaust funds from federal aid first.  Additional information regarding the availability of federal student aid is available from the Department of Education publication, Federal Aid First.  You may also view federal aid program limits here.
  • There are a variety of private loan options available for students and parents and most sources require a good credit history and/or a co-borrower.
  • Private loans are based on the borrower's (and co-borrower's if required) credit and financial history.
  • It is typically to the student's advantage to use a co-signer.
  • Loan terms vary and may require the student be enrolled at least half-time (six credit hours) at Butler University in a degree-seeking program.
  • A private loan is not based on financial need, but the combination of all financial aid including the loans may not exceed the cost of attendance for the academic year.
  • The Office of Financial Aid will process a private loan application after it has been approved by the lender. Until the application is complete and approved by the lender, the Office of Financial Aid is not aware of, nor able to certify eligibility for the loan.
  • Terms, conditions and interest rates vary with each lender.
  • New laws now require students to complete the Private Education Loan Applicant Self-Certification Form in order to ensure borrowers understand the risks of private student loans and how to exhaust their federal loan eligibility before borrowing private loans.  This form is available through the lender's website. 
  • Students will need to promptly complete and return any disclosures sent to them by their lender.
  • You are not required to borrow from one of the loan programs listed below.

Sallie Mae (Lender Code: 900905)

Disclosure Statement for the Sallie Mae Smart Option Loan

Wells Fargo for Undergraduates (Lender Code: 807176)

Disclosure Statement for the Wells Fargo Collegiate Loan

Disclosure Statement for the Wells Fargo Education Connection Loan

Wells Fargo for Graduate and Professional Students (Lender Code: 807176)

Disclosure Statement for the Wells Fargo Education Connection Loan

Disclosure Statement for the Wells Fargo Graduate Loan

Eli Lilly Federal Credit Union (Lender Code: 500415)

Disclosure Statement for the Eli Lilly Federal Credit Union Private Education Line of Credit

Chase Bank (Lender Code: 503000) (for the 2011-2012 academic year then only to Chase customers)

Disclosure Statement for the Chase Select Loan

*The Chase Select Loan requires a minimum loan amount for Indiana residents of $3,501. The minimum loan amount for non-Indiana residents is $1,001.

SimpleTuition®

Butler University is pleased to offer students and families the opportunity to compare private education loan programs by lender at www.simpletuition.com/butler. SimpleTuition® is a comparison tool families may use to assist with their lender and private loan program selection. SimpleTuition® will also assist the student and family in better understanding the long term costs of the loan programs being considered.

*Loans are based on the borrower's (and co-borrower's, if required) credit and financial history. While Butler University may recommend these programs, approval of any loan will be based on information each lender has obtained and their specific credit criteria.

Direct-to-Consumer Student Loan Marketing

As you plan for the academic year, we continue to caution you when considering lenders or loan products that market directly to you via the mail or the internet through direct to consumer (DTC) solicitation. With these programs you may not receive the same personal attention or care in the processing of your loans that you would receive should you choose to use a carefully selected lender.  You can view our primary lenders at  www.simpletuition.com/butler to review the terms and benefits of the different loan programs.

Butler University Code of Conduct Statement