Student Loans

The annual loan limit will not change, however, there is a significant change to the overall aggregate limit. (*The new aggregate limit does not include undergraduate loans.)

A new lifetime loan limit of $257,00 is set for all Federal Direct student loans borrowed for all levels of study (excluding Parent PLUS loans).

Graduate PLUS Loans will be phased out and will be unavailable to new borrowers beginning July 1, 2026.

If you are currently enrolled in a graduate level program and have borrowed a Federal Direct loan that was disbursed to your student account before July 1, 2026, you are considered a legacy borrower and may still be eligible for the Grad PLUS loan. 

The length of time a legacy borrower can continue to use Grad PLUS loans is limited to the expected time to credential or three academic years, whichever is sooner.

Any break in enrollment, except for an approved leave of absence, will forfeit legacy status. Students who lose legacy status will no longer be able to borrow a Grad PLUS loan upon return and will be subjected to new borrower loan limits.

Beginning with the 2026-2027 academic year, students enrolled less than full-time will have their annual loan limit prorated based on their enrolled credit hours. Students who withdraw from a course after loan disbursements will also see an adjustment of their loan during that term. Please check in with our office prior to withdrawing to see how this may affect you.

All federal loans must be repaid using the same repayment plan. Current borrowers who take out new loans on or after July 1, 2026 will have to repay their loans under a Tiered Standard or RAP plan.

• Interest Rate for the 2025-2026 academic year is fixed at 7.94%
• Interest accrues after the first disbursement and it can either be capitalized or you can choose to pay it while in school.
• Interest rates for loans in subsequent academic years may vary and are determined annually by the Department of Education.
• This loan has an origination fee that is charged by the government and is deducted from the loan before the funds are received by Gordon-Conwell.
  • • Loans that are first disbursed between October 1, 2020 and September 30, 2026 will be assessed at 1.057%.
• Contingent upon eligibility students may receive up to the maximum amount and annual limit of $20,500.

To receive this loan, new borrowers at Gordon-Conwell must complete the following:

• • Master Promissory Note (MPN) – a legal document in which the borrower promises to repay their loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of the loan.
  • Direct Subsidized/Unsubsidized Loan Entrance Counseling – ensures that the borrower understands the responsibilities and obligations they are assuming.

Satisfactory Academic Progress (SAP) Requirements

Students who receive federal student loans must meet the following Satisfactory Academic Progress (SAP) requirements:

• • The student must maintain the minimum GPA required for his or her degree program.
  • The student must successfully complete at least 67% of credits attempted.

For this purpose, successfully completed is defined as having received a passing grade (D or higher or P for passing).  Note that withdrawing (and receiving a W) is not considered successfully completed and such a class would be included in the SAP calculation.

The SAP verification is done for each student prior to the disbursement of loans. If a student does not meet the requirements, the student will be notified by the Financial Aid Office.  A student who does not meet the SAP requirements has the option of an SAP appeal process.  The process is described in the notification letter and in the GCTS Student Handbook.

If a student’s SAP appeal is approved, loan eligibility can be reinstated and the student may be eligible to receive federal student loans. If a student does not use the SAP appeal process or if a student’s SAP appeal is not approved, the Financial Aid Office will not be able to disburse that student’s loan.

Grace Period, Repayment, & Exit Counseling

Once you graduate, drop below a half-time course load, or withdraw from school, your six-month grace period begins. The grace period begins on the last day that you attended on a part or full-time basis. You are not required to make student loan payments during the grace period, but will be required to do so once the six-month grace period ends.

If you return to school on a half or full-time basis before the grace period is over, you will have a new six-month grace period as you graduate, drop below a half-time course load, or withdraw.

The standard repayment term for student loans is ten years, but other options may be available. See Federal Student Aid for more information about repayment plan options.

Also, once you have graduated, drop below half-time, take a leave of absence, or withdraw from school you will be required to complete the Exit Counseling.

*Note that Gordon-Conwell cannot issue a diploma or transcripts until this federal requirement is complete.

The Graduate Plus Loan is another federally funded loan program that allow students to borrow up to the full cost of attendance minus other financial assistance. This loan requires a credit check and is contingent upon approval.

• • Interest Rate for the 2025-2026 academic year is 8.94%
  • Interest accrues after the first disbursement but the first payment is not due until approximately 60 days after the loan is fully disbursed.
  • Interest rates for loans in subsequent academic years may vary and are determined and annually by the Department of Education.
  • This loan has an origination fee that is charged by the government and is deducted from the loan before the funds are received by Gordon-Conwell.
    • Loans that are first disbursed between October 1, 2020 and September 30, 2026 will be assessed at 4.228%.

• • The standard repayment period is ten years, although there are extended and graduated plans available
  • The principal payment may be deferred for up to 4 years while the student is enrolled on at least a half-time basis. Interest will accrue during deferment and can be paid quarterly or capitalized
  • The credit check used to approve the loan is valid for 180 days.

To apply for the Graduate Plus loan complete the following:

• • Direct Plus Loan Application
  • Loan Agreement for a PLUS Loan (MPN)

Once completed, please notify our office of your intent to borrow a Graduate Plus Loan.

*If you are denied a Plus Loan you may appeal the credit decision or find an endorser. For more information on how to appeal or add an endorser please visit Federal Student Aid or contact the Student Loan Support Center at 1-800-577-7394