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Loans

To be eligible for a loan, you must be at least a half time student (enrolled in a minimum of 1.5 courses per term) and seeking one of the following degrees: M.Div. (all loan types), M.A. (all loan types), D.Min., M.Th. and Ph.D. (federal loans only).

Graduate Certificate students, Auditors and Non-degree students, including Affiliates, are NOT eligible for student loans.

Luther Seminary participates in the U.S. Dept. of Education Federal Direct Loan Program. The interest rates are fixed (non variable) and are adjusted July 1 of each year. Deferment and forbearance postponement of payment are available along with flexible repayment terms. You are encouraged to meet your financial needs through the Federal Direct Loan Program.

Federal Direct Unsubsidized Loan

  • Federal government is the lender.
  • The individual eligibility is limited to a maximum amount of $20,500 per year. Aggregate limit is $138,500 from all schools minus any subsidized loan funds.
  • Interest rates for loans with first disbursement after 7/1/23 and before 06/30/24 will be 7.05%.  New interest rates are reset each year on July 1 and are fixed for the life of that individual loan.
  • This carries an upfront fee of 1.057%.  This will also be reset each year.
  • All interest that accrues on this loan is the responsibility of the borrower; the government does not pay any interest on this loan. Interest will accrue from the date of disbursement. Interest rates on all federal student loans are determined by federal law.
  • Repayment of the unsubsidized loan begins six months after the student graduates or ceases to be enrolled at least half-time (1.5 courses per term) at Luther Seminary.

Federal Direct Graduate PLUS Loans

  • Federal government is the lender.
  • The individual eligibility is limited to the Cost of Attendance (as determined by the Financial Aid Office) for a year minus any other financial aid.
  • All interest that accrues on this loan is the responsibility of the borrower; the government does not pay any interest on this loan. Interest will accrue from the date of disbursement. Interest rates on all federal student loans are determined by federal law.
  • Interest rates for loans with first disbursement after 7/1/23 and before 06/30/24 will be 8.05%.  New interest rates are reset each year on July 1 and are fixed for the life of that individual loan.
  • This carries an upfront fee of 4.228%.  This will also be reset each year.
  • Repayment of the Grad PLUS loan begins six months after the student graduates or ceases to be enrolled at least half time, 1.5 courses at Luther Seminary.
  • Federal Direct Graduate PLUS loans are available to graduate students if they are creditworthy applicants.  A credit check will be performed.

Mourer Loan

In addition, Luther Seminary offers the Mourer Loan, an institutional loan program for students planning on entering into ministry after graduation.

  • Luther Seminary is the lender.
  • The funding is limited, so this is a first-come, first-served loan. In order to be considered for this loan, you must apply early (Jan-Feb) and check the box on the Luther Seminary Financial Aid Application requesting consideration for the Mourer Loan.
  • This is a fixed-rate 5% loan with all the same deferment and cancellation options available to federal loan borrowers, using the same criteria.
  • The attraction of this loan is that Luther Seminary will cancel up to 50% of the original loan balance for service in ministry. We will cancel 10% of the original balance per year for the first 5 years of ministry. Ministry is defined (but not necessarily limited to) as the following:
    • Ordained ministry: Such ministries may include parish ministry, chaplaincy in specialized settings such as health care chaplaincy and pastoral counseling; campus ministry, spiritual direction, camps, and missionary fields, and in synod, regional, and church-wide offices.
    • Lay ministry: Such ministries may include work within a congregational setting or in a church-sponsored agency including youth ministry, chaplaincy, diaconal service, social work, advocacy, and related efforts.
    • Missionary ministry: Such ministries with the purpose of sharing the Christian faith in international and domestic settings.
    • Non-Profit Employment: Typically these would be social justice, environmental, etc. organizations.
  • NOTE: Because this is a non-federal loan, it is not eligible to be included with a Federal Consolidation Loan.
  • Interest will not be charged during periods of enrollment or during acceptable deferment periods. Repayment will begin on the earlier of (1) the nine-month anniversary of your graduation from the seminary; or (2) if you leave the seminary for any reason other than graduation, the six-month anniversary of the last day you were enrolled at least half-time.
  • Following the completion of each 12 months of creditable service, borrowers should download and complete the Luther Seminary Mourer Cancellation Form and submit to the Financial Aid Office at Luther Seminary.

Application process

If you have not begun the financial aid application process, get started by completing online the Free Application for Federal Student Aid(FAFSA). Enter Luther Seminary’s school code, G02357, on your application and the Office of Financial Aid will automatically receive a copy. (If you know that you will not be applying for student loans, the FAFSA is not required.)  You must have completed and submitted your federal income taxes (or indicate you will not be filing) in order to complete the FAFSA.

Once you have been admitted you must complete the Luther Seminary aid application process online.

All first-time borrowers at Luther Seminary are required to complete an electronic application and promissory note (eMPN) and online Direct Loan program Entrance Counseling before loan proceeds can be disbursed. Visit studentloans.gov to complete these required documents.

You can apply for loans even if you receive grants or scholarships from Luther Seminary. In addition, you are not required to accept the full amount of loans for which you have qualified. If you have questions about this, please contact the Office of Financial Aid.

Track federal loans

You can track all your Title IV/federal loans, both undergraduate- and graduate-level, at the National Student Load Data System (NLSDS).

Track private loans

Private or alternative loans taken out while in undergrad or grad school, and only be identified on a credit report. You are able to obtain a free credit report from each of the three credit bureaus once per year at: www.annualcreditreport.com.

Loan counseling

Luther Seminary recommends current students review outstanding loan balances annually and estimate their eventual loan payments. Visit the Loan Counseling page for more details.