Bockman Hall in winter

Loan Options

Find loans that fit your profile

To be eligible for a loan, you must be at least a part-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).

Loan programs

Luther Seminary participates in the U.S. Dept. of Education Federal Direct Loan Program which includes the following loans:

Perkins Loan
  • Luther Seminary is the lender.  

  • Individual eligibility is limited to up to $4000 per year/$40,000 aggregate from all schools.

  • This is a fixed-rate, 5% loan.  

  • The government will pay all interest during the in-school period and through the end of the 9-month grace period. 

  • Funding is limited, so this is a first-come, first-served loan.
Unsubsidized Stafford 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.  

  • 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.
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.  

  • 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.

In addition, Luther Seminary offers the Mourer Loan, a program for students planning on entering into ministry after graduation:

Mourer Loan
  • Luther Seminary is 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.

    • 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 period 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.

  • Graduating students and recent alumni should visit the Loan Repayment page for more details.

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.)

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 www.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 and grants

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

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.