Loans
Cornell College offers two institutional loans. If you are eligible for one of these loans, it will be reflected on your financial aid offer.
Mabel Sherman loan
The interest rate for the Mabel Sherman loan for the 2024-2025 academic year is 3% fixed rate. Each year the rate will be determined based on the usury rate in accordance with the provisions of the Iowa code section 535.2(3)(a), on July 1.
Principal payments will begin one year from the first day after separation from Cornell College. Interest will also begin to accrue at that time. Repayment shall not exceed ten years.
McElroy loan
The interest rate for the McElroy loan for the 2024-2025 academic year has been set at a fixed 3%. Each year the rate will be determined based on the usury rate in accordance with the provisions of the Iowa code section 535.2(3)(a), on July 1. The set interest rate after July 1 will be below the usury rate at that time.
Payments will begin six months from the first day after separation from Cornell College. Interest will also begin to accrue at that time. Repayment shall not exceed ten years.
Your financial aid will include federal student loans through the Department of Education. More information regarding Federal Direct Loans can be found on their website.
Direct Subsidized Loans
- Interest rate for 2026-2027 is 6.52%; interest rate is adjusted each July for the next year
- There is an origination fee of 1.057%; origination fees adjust annually in October
- No interest is charged as long as you are enrolled at least half-time
- Need-based
- Must fill out the FAFSA to be eligible
Direct Unsubsidized Loans
- Interest rate for 2026-2027 is 6.52%; interest rate is adjusted each July for the next year
- There is an origination fee of 1.057%; origination fees adjust annually in October
- Interest accrues as soon as your loan is disbursed to you
- Principal balance is deferred
- Available to all students regardless of need
- Must fill out the FAFSA to be eligible
Direct Loan Borrowing Limits
The following chart provides maximum annual (fall, spring, and summer) aggregate loan limits for Subsidized and Unsubsidized Direct Loans.
|
Classification |
Dependent Undergraduate Student |
Independent Undergraduate Student (and dependent students whose parents are unable to borrow PLUS Loans) |
|---|---|---|
|
Freshman |
$5,500 ($3,500) * |
$9,500 ($3,500)* |
|
Sophomore |
$6,500 ($4,500)* |
$10,500 ($4,500)* |
|
Junior/Senior |
$7,500 ($5,500)* |
$12,500 ($5,500)* |
|
2nd BA/ Teacher Licensure |
NA |
$12,500 ($5,500)* |
|
Maximum Total Debt from Loans (aggregate loan limits) |
$31,000 ($23,000)* |
$57,500 ($23,000)* |
*The numbers in parentheses represent the maximum amount that may be subsisdized. The loan amounts listed above cannot exceed your cost of attendance minus other financial aid received.
Master Promissory Note for a Subsidized/Unsubsidized Loan (MPN)
You'll need to complete a Master Promissory Note (MPN) the first time you borrow a Federal Direct Loan before you can receive the loan. The MPN will be used for all future federal direct loans you borrow while at Cornell.
Entrance Counseling
You'll also complete an Entrance Counseling before you can borrow a Federal Direct loan for the first time.
Exit Counseling
The Department of Education will also require you to complete exit counseling at the time of graduation or if you were to withdraw from the college. Look for an email from us with your exit counseling online instructions.
Direct Consolidation Loan
Combine one or more of your Federal loans into a new loan.
Direct Parent Loan for Undergraduate Students (PLUS)
Your parents can borrow money from this loan for your education costs. Parents are required to be credit worthy. Please contact our office if you feel that your parent would not qualify for the loan.
- Interest rate for 2026-2027 is 9.07%; the interest rate is adjusted each July for the next year
- There is an origination fee of 4.228%; origination fees adjust annually in October
- Interest accrues as soon as your loan is disbursed to you
- Complete the Apply for a PLUS Loan and Master Promissory Note for a PLUS Loan (MPN) in order to receive the loan.
Changes Effective July 1, 2026.
Do you qualify for a legacy Exception?
You may be allowed to follow the old Parent PLUS loan rule if:
- Your student stays continuously enrolled at Cornell and
- Your student received a Direct Loan before July 1, 2026, or you (the parent) borrowed a Parent PLUS Loan for this student in the past.
If you qualify, you can keep borrowing up to the full cost of attendance for up to three more years, if your student stays continuously enrolled at Cornell College.
If your student graduates or stops attending, the new loan limits will apply
If you do NOT qualify for The Exception
- You can borrow up to $20,000 per year in the Parent PLUS Loan per student (annual limit).
- You can borrow up to $65,000 total for each new student (lifetime limit).
- Parents will not be able to borrow $20,000 every year for four full years.
- Please plan ahead ahead so funding lasts all four years of college. We suggest you may only want to borrow $16,250/ year.
Origination fees
Origination fees are deducted from the amount you borrow before the funds arrive at Cornell. Please take this into consideration if you are trying to borrow an exact amount to cover charges. Repayment begins 60 days after the last disbursement of the loan with up to ten years to repay. Other repayment plans are available. Interest and principal may be deferred in some circumstances.
- Credit-worthiness determines eligibility
- Not need-based
Private education loans are credit-based consumer loans. Always consider your lowest-cost options first. Obviously, scholarships and grants should be used if you are awarded them. Federal student loans typically will be a lower-cost option over a private loan. However, private loans can be an additional funding source. Private loans can be in the students (with a credit worthy co-signer) or parents name.