Davidson meets 100% of students' calculated financial need with a combination of grants and student employment. Need-based financial aid packages do not include a loan component. Students and parents have the option of borrowing educational loans as a matter of personal choice.

Davidson adheres to this Student Lending Code of Conduct in assisting students and parents who opt to borrow educational loans.

Davidson College participates in the William D. Ford Federal Direct Loan Program for all federal student and parent loans. This requirement applies to all borrowers, both new and continuing. As a result, all student borrowers and all parent borrowers will be required to complete a Master Promissory Note (MPN), even those who previously completed the MPN for the Federal Stafford Loan and Federal PLUS Loan Programs. 

In addition to the Federal Direct Loan program, Davidson students are also able to borrow private, alternative education loans through numerous sources.

The following questions and answers are designed to assist you with educational borrowing at Davidson College:

Q: How do I apply as a student for a Federal Direct Loan?

A: Students wishing to borrow a Federal Direct Loan (FDL) must have completed the Free Application for Federal Student Aid (FAFSA) for the academic year in which they wish to borrow the FDL. The FAFSA results must be sent to Davidson College (federal FAFSA code: 002918). Davidson will then use your FAFSA results and other financial data to determine your FDL eligibility.

You must complete the Master Promissory Note (MPN) on the federal government web site (StudentLoans.gov). The online MPN needs to be completed only once during your Davidson career. However, you must notify Davidson of the amount of FDL you wish to borrow each year. Please complete this response form to indicate the amount of FDL you wish to borrow, and the loan period this amount will cover.

Borrowers must also complete online loan entrance counseling before loan proceeds can be released.

Q: How much of my loan amount will be subsidized or unsubsidized?

A: Davidson will use your FAFSA results, your cost of attendance, and any aid you are receiving (such as grants, work, outside scholarships, etc.) to determine what portion of your FDL qualifies to be subsidized (interest paid by the federal government while you are enrolled) or will be unsubsidized (the borrower is responsible for the loan's interest while enrolled). Some borrowers qualify to have part of their loan be subsidized and part be unsubsidized.

Q: How much FDL can I borrow in an academic year?

A: Student borrowers can borrow up to the following academic year maximums (These annual limits are set by the federal government):

In those instances where parent borrowers are unable to secure a Federal PLUS Loan, students can apply for up to an additional $4,000 (first-year and sophomores) or $5,000 (juniors and seniors) unsubsidized FDL.

Q: How do I apply as a parent for a Federal Direct PLUS Loan?

A: Parents wishing to borrow only a Federal Direct PLUS Loan (PLUS) are not required to complete loan entrance counseling but must complete a FAFSA. Additionally, they must complete the PLUS MPN on the federal government web site (StudentLoans.gov) as well as a PLUS application (which includes a required credit check) at (StudentLoans.gov). The PLUS MPN needs to be completed only once during the student's Davidson career.

Q: How much PLUS can I borrow in an academic year?

A: Parents can borrow up to the entire cost of attendance for an academic year, minus any financial aid the student is scheduled to receive.

Q: What are the fees and interest rates on both student FDL and PLUS?

A: Fees and interest rates are set annually by the federal government, and specific fee and interest rate information is provided at StudentLoans.gov.

Q: Are there non-federal loan options available if needed?

A: Private, alternative education loans are available to student borrowers if federal loan options are either not available or families feel they need additional financing. These loans typically require the student borrower to secure a creditworthy co-signer. All students and parents should exhaust all federal loan options before utilizing this type of loan to assist with educational expenses.

Q: How do I find private, alternative education lenders?

A: There are numerous lenders of these types of loans. Davidson College will certify any private, alternative loan application presented to it. The Higher Education Opportunity Act of 2008 restricts institutions of higher education from recommending specific lenders of this type of loan. To find a private, alternative education lender, enter "private student loan" or "private educational loan" into any internet search engine.  Numerous options will be presented to choose from.

Q: Are there other funding options I might consider?