Student Loans

Unlike grants or scholarships, money borrowed by students or parents must be repaid with interest, usually after you are finished with your education. Federal student loans are an investment in your future. If you do decide to take out a loan, make sure you understand who is committing to the loan – whether it is you or your parent or guardian - and the terms and conditions of the loan.

By submitting the FAFSA, your college’s financial aid award package is required by the U.S. Department of Education to include an offer of federal student loans. Garrett College does not encourage borrowing, but encourages smart borrowing and additional steps are required for student loan processing.

The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender.

How much can I borrow for college?

Year	Dependent Undergraduate students	Independent Undergraduate students
First Year	$5,500 - no more than $3,500 of this amount may be in subsidized loans.	$9,500 - no more than $3,500 of this amount may be in subsidized loans.
Second Year	$6,500 - no more than $4,500 of this amount may be in subsidized loans.	$10,500 - no more than $4,500 of this amount may be in subsidized loans.

Subsidized vs. Unsubsidized Loans – Know the Difference!

Direct Subsidized Loans are available to eligible undergraduate students who demonstrate financial need to help cover the costs of college. For these loans, the government does pay interest while you are still in school.

Direct Unsubsidized Loans are available to eligible undergraduate, graduate, and professional students. These are non-need based and the government does not pay interest while you are in school.

Direct PLUS Loans are available to parents of dependent undergraduate students to help pay for education expenses not covered by any other form of financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.

Private Educational (Alternative) Loans

Private education loans are non-federal loans you borrow from a lender such as a bank, credit union, or state agency. Private loans require that you apply for and get approved for these loans, unlike Federal Student Loans. Private Loans provide students and family another borrowing option and should be considered as a “last resort” lending option.

The private loan amount you can borrow will depend on your Cost of Attendance and the amount of other aid you’ve been offered. We recommend that you start with federal student loans due to the benefits they offer and compare the difference between federal and private loans.

If would like to add a private loan to your aid award you can visit Credible.

Preferred Lender List

In compliance with the Higher Education Opportunity Act (HEOA), Garrett College (GC) maintains a Preferred Lender List (PLL) of private educational loan providers. The sole purpose of this list is to provide students and their families with information about lenders who have historically offered competitive loan terms, outstanding customer service, and valuable borrower benefits tailored to the needs of the GC student body.

Borrower Rights: Garrett College firmly upholds the principle that students and their families have the absolute right to select any private lender of their choice, regardless of inclusion on this list. GC will process loan certifications for any eligible private lender selected by the borrower without penalty or delay.

Evaluation Criteria: Lenders were selected based on the comprehensive criteria established in the Request for Information (RFI) due December 15, 2025. The final selection prioritizes transparency, borrower support, and favorable loan products.

Based on the evaluation criteria above, the following lenders submitted the strongest overall proposals and aligned with student needs and institutional values.

Lender
SallieMae	Recognized for robust product variety, including loans for continuing education, high borrower benefits (e.g., interest rate reductions), and established customer service infrastructure.
Navy Federal Credit Union	Selected for competitive, member-focused rates and exceptional borrower service, specifically benefiting students affiliated with military families.
Keystone Student Loans	Chosen for strong regional presence, commitment to transparency, and specialized state-based lending options beneficial to our geographic region.
RevlTek	A flexible financial technology solution offering innovative lending products that cater specifically to students not meeting SAP or seeking non-traditional enrollment options.
First United Bank & Trust	Selected for strong local presence, community partnership, and providing personalized financial services and support to Garrett County residents and regional students.

Other lenders on the list either provide their own loan servicing or contract with an external servicing company that is different than the other lenders on the list. Loan servicers for all lenders and other loan disclosure information is located in ELM.

Private Loan Comparison Chart

This chart summarizes the key features of the lenders included on the Garrett College Preferred Lender List (PLL). The information is generalized and is intended only for comparison purposes. Students must contact the lender directly for the most current and specific terms, rates, and eligibility requirements.

Lender	Loan Type/Focus	Fixed/Variable Rates	Origination Fee	Co-signer Release	Borrower Benefits	Repayment Options	Minimum Loan Amount
SallieMae	Undergraduate, Graduate, Career/CEWD	Both Offered	Generally No	Yes, available after meeting criteria	Interest Rate Reductions, Principal Reductions	Deferred, Interest-Only, Full Payments	Varies by Product
Navy Federal Credit Union	Undergraduate, Graduate (Membership Required)	Both Offered	Generally No	Yes, available after meeting criteria	Competitive Member Rates, Loyalty Discounts	Deferred, Interest-Only, Full Payments	Low (often $250+)
Keystone Student Loans	Undergraduate, Regional State-Based	Both Offered	May Apply (Low)	Yes, available after meeting criteria	State/Regional Incentives	Deferred, Interest-Only, Full Payments	Varies
RevlTek	Non-Traditional Enrollment (e.g., SAP, Non-Degree)	Primarily Variable	Generally No	Yes, available after meeting criteria	Flexible Payment Options	Deferred, Immediate Repayment	Low (often $500+)
First United Bank & Trust	Regional Undergraduate, Community-Focused	Primarily Fixed	Generally No	Yes, available after meeting criteria	Local Customer Service, Relationship Banking Discounts	Deferred, Immediate Repayment	Varies

Garrett College does not receive any material benefit, financial or otherwise, from the use of this list. Inclusion is based solely on the historical quality of products and services offered to students.