Financial Aid

Additional Loan Options 

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. 

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. The entire process must be repeated if additional borrowing is later desired
  • Families should exhaust all 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.
  • Once the loans are approved and certified by the Office of Financial Aid, funds will be credited to the student's account after the fifth day of class each semester provided all required documents have been completed and the student meets all eligibility requirements. 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 fixed-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 educational expenses and maximize family resources.

  • Interest Rates and Fees for Federal Direct PLUS Loans:
    • Federal Direct PLUS Loans borrowed in the 2013-2014 academic year will have an interest rate fixed at 6.41 percent.
    • Federal Direct PLUS Loans borrowed in the 2014-2015 academic year will have an interest rate fixed at 7.21 percent.
    • An origination fee of 4.288 percent will be assessed by the lender at the time of disbursement for loans with a first disbursement date on or after December 1, 2013 and before September 30, 2014. Loans with a first disbursement date on or after October 1, 2014 and before September 30, 2015 will be assessed an origination fee of 4.292 percent. This fee is subject to change; refer to www.studentloans.gov for updates.
  • Repayment of the loan typically begins 60 days after the loan is fully disbursed. There is no grace period; therefore interest begins to accrue after the first disbursement is made. Deferment options are available.
  • Families are required to file the FAFSA at www.fafsa.gov and apply for the Federal Direct PLUS Loan at www.studentloans.gov.
  • The Office of Financial Aid will process a Federal Direct PLUS Loan upon notification of credit approval.
  • The Master Promissory Note (MPN) must be signed by the parent prior to funds being credited to the student's account.
  • Students must be enrolled in a minimum of 6 credit hours to be eligible for the loan.

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

Federal Direct PLUS Loan for Graduate Students (Grad PLUS)

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.

  • Interest Rates and Fees for Graduate PLUS Loans:
    • Federal Direct Grad PLUS Loans borrowed in the 2013-2014 academic year will have an interest rate fixed at 6.41 percent.
    • Federal Direct Grad PLUS Loans borrowed in the 2014-2015 academic year will have an interest rate fixed at 7.21 percent.
    • An origination fee of 4.288 percent will be assessed by the lender at the time of disbursement for loans with a first disbursement date on or after December 1, 2013 and before September 30, 2014. Loans with a first disbursement date on or after October 1, 2014 and before September 30, 2015 will be assessed an origination fee of 4.292 percent. This fee is subject to change; refer to www.studentloans.gov for updates.
  • 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.
  • 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, for 2013-2014.
  • Beginning Fall 2014, students must be enrolled in a minimum of three credit hours per semester to be eligible for the Federal Direct Grad PLUS Loan program.

Private Loans 

  • Families should exhaust all Federal Direct Loan eligibility before borrowing private education loans as the terms and conditions are more favorable.
  • Private loans are based on the borrower's (and co-borrower's) credit and financial history.
  • Select a lender based on the terms and benefits you find most appealing as terms, conditions and interest rates vary with each lender.
  • A private loan is not based on financial need and the combination of all financial aid including 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.
  • 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.

      Primary Private Loan Lenders for the 2014-2015 academic year:

               Discover Bank (Lender Code:  831312)

                      Disclosure Statement for Discover Bank

               Fifth Third Bank (Lender Code:  508780)

                      Disclosure Statement for Fifth Third Bank

               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 Loans

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

                      Disclosure Statement for the Wells Fargo Loans

FASTChoice™

Butler University is pleased to offer students and families the opportunity to compare private education loan programs by lender at www.fastproducts.org/choice/butlerFASTChoice is a comparison tool families may use to assist with their lender and private loan program selection. FASTChoice 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. 

Butler University Code of Conduct Statement