Loans are another way to fund your education. There are both Federal and Private Loan options at ARCC. The main difference between Federal and Private Loans is that Federal Loans are government-run programs whereas Private Loans are bank-run programs. 

Federal Loans have finite limits. This means that there is a cap on the amount you are allowed to borrow both annually and for your lifetime. Once you have reached these limits you will no longer be eligible to receive Federal Loans. 

If you are financing your education and/or supplementing your living expenses using loans, PLEASE REMEMBER TO BORROW RESPONSIBLY. 

Federal Loans

The federal loan program requires students and parents (for dependent students) to apply for financial aid with the FAFSA. Students must be enrolled at least half-time -6 credits- at the time their aid is disbursed to qualify for federal loans. This is a federal regulation: there are no exceptions to this rule

There are four types of federal loans:

What is the difference between these two programs? 

  • Subsidized Direct Loan:

No interest is charged on a  while you are in school at least half time and during the six month grace period after you cease half time enrollment. 

  • Unsubsidized Direct Loan:

You may either pay the interest while you are in school or you may choose to have it capitalize. If you choose to have the interest capitalize you are adding the interest charges accruing on your loan to the principal balance. This results in higher interest charges every month. It is in your financial best interest to make interest payments on your Unsubsidized Direct Loan.

  • Terms that apply to BOTH Direct Loan programs:

For undergraduate students, the Subsidized Direct Loan interest rate for the 2013-2014 academic year is fixed at 3.86% and the Unsubsidized Direct Loan interest rate is fixed at 3.86%. A processing fee of 1.051% is applied to each program.

Each of these loan programs have a six-month grace period after dropping below 6 credits (half-time). Please consider this when withdrawing from courses: if you withdraw and are enrolled in less than six credits your grace period will start. You only get one grace period, so if you use it prior to graduation you will be required to start repaying your loans immediately after completing your program. 

Note: A "fixed" interest rate means that the interest rate will not change on your loan for the duration of your education and repayment.


Private Loans

Many banks and credit unions provide educational loan options- commonly referred to as private loans. These loans may have higher interest rates than federal loans and generally should be considered as a borrowing option after you have considered federal loans.

Eligibility for private loans is based on the credit worthiness of the borrower and/or co-signer. There are federal student loan programs that may have more favorable terms and conditions than private educational loans.

Anoka-Ramsey Community College has certified private loans in the past three years for the following lenders. The list order is based on the number of loans certified (highest to lowest) and is updated in February of each year. Anoka-Ramsey Community College does not endorse any one lender. By clicking on the name of a lender you will leave the Anoka-Ramsey Community College web site. Please contact the lender(s) for information regarding terms and conditions or to apply for a loan.

    • Minnesota SELF Loan

*Please note that the SELF loan program requires a credit-worthy cosigner.

    • Wells Fargo 

    • Sallie Mae

Under the Truth-in-Lending Act rules private education loans are subject to self-certification, three consumer disclosures at specific times in the application process, and a three day delay in disbursement. Due to the number of steps involved in the private loan application process, applicants should allow a minimum of 3 weeks for processing.

Neither Anoka-Ramsey Community College nor its employees receive benefits or remuneration as a result of your choice of lender. You may choose a lender other than those appearing on this list.  See our Student Loan Code of Conduct for additional information.

*This information is intended to be accurate but the publisher does not assume liability for errors or omissions.

Loan Links

  • Sponsored by a Minnesota Higher Education Services Office, this site offers on-line SELF loan information and counseling.
  • Minnesota State Colleges and Universities site -designed to help borrowers of Perkins Loans understand and manage loan funds by providing you with deferment, cancellation and payment information.
  • NSLDS (National Student Loan Database System) is the U.S. Department of Education's central database for student aid. Allows student access to account information pertaining to loans and/or grant amounts, outstanding balances, loan statuses, and disbursements.
  • Guide to defaulted student loans sponsored by the U.S. Department of Education.

Financial Aid


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