MBBS Interest-Free Loan

Amount

Up to $8000 per year(minimum 9 units)
Up to $4000 per year(minimum 6 units)

Criteria

  • Minimum GPA of 2.5 for returning students
  • Minimum of 6 units per semester
  • Membership in a Mennonite Brethren, Mennonite, or BIC church
  • Demonstration of financial need
  • Reasonable plan for repayment

Description

The Seminary provides interest-free loans for Mennonite Brethren, Mennonite students, and interest- bearing loans for students from other denominations. Qualifying MB or Mennonite students may borrow up to $8,000 per year to a maximum family debt level of $24,000 at graduation, subject to loan funds available. The figure of $24,000 includes a student’s entire non-mortgage debt load. Spouses government loans are not used to determine student eligibility.

Application for a Seminary loan is made through the regular financial aid application procedure. Students from other denominations may borrow up to $4,000 per year, subject to availability. Students must meet the general eligibility criteria. Additionally, the student must have half-time student status (minimum enrollment of 6 units per semester) and a reasonable plan for repayment. Complete qualifying criteria are available from the Financial Aid office. During repayment, if the borrower ceases to be a member of a Mennonite Brethren or Mennonite Church, interest of 8% per annum of the remaining balance will be assessed.

The Seminary loan fund provides interest-free loans for Mennonite Brethren and Mennonite students. Qualifying students may borrow up to $8,000 per year to a maximum family debt level of $24,000 at graduation, subject to loan funds available. The figure of $18,000 includes a student’s entire non-mortgage debt load.

Application for a Seminary loan is made through the regular financial aid application procedure. Students must meet the eligibility criteria. A loan amount of up to $8,000 ($4,000 for less than full-time enrollment) may be approved for the student, subject to credit clearance, and will appear as part of the financial aid package in the student’s award letter. A fee is charged for a credit check. A student may choose to accept any amount up to the approved figure by signing a promissory note in the financial aid office. Funds are disbursed in U.S. dollars and must be repaid in U.S. dollars. An insurance fee of 2% is deducted from the loan amount. Tuition for all terms is first allocated from the loan. The remaining amount can be equally divided and posted to the student’s account in fall and spring, or paid to the student in equal monthly installments for the duration of the school year on the first school day of each month, beginning with the month the loan is taken, through May.

Loan approval may be reduced if the student’s income exceeds the stated expectation so that need level is met through funds outside of the loan. A student who is on academic probation or is taking less than the minimum number of units in Fall or Spring is not eligible for a seminary student loan.

Repayment of the student loan

Repayment begins six-months following graduation or termination of studies at MBBS. A student holding an MBBS loan who drops below 6 units per semester enters the 6-month grace period and then begins repayment. Only 1 grace period is allowed. A repayment schedule and length of time is arranged with the Financial Aid director prior to graduation. The maximum period for repayment is 10 years in cases of maximum loan amounts. At such time as a borrower ceases to be a member in an MB or Mennonite church, or exceeds the original repayment schedule, interest of 8% will be added to the remaining loan payments.