Luther's Financing Philosophy

Students are encouraged to borrow only what they need and to seek outside scholarships and save summer earnings in order to reduce overall indebtedness. The Financial Aid Office works closely with students to achieve this goal. We also work diligently to ensure that our graduates will be able to repay their loans upon graduation—Luther's Stafford Loan default rate of 1.8 percent is evidence of our success.

At Luther College, the following types of loans may be available to you and your family to assist in financing educational costs:

Federal Loan Programs

William D. Ford Federal Direct Stafford Loan Program

Student loan programs awarded based on completion of the Free Application for Federal Student Aid (FAFSA). Subsidized and Unsubsidized loans borrowed under this program in 2021-22 will have a fixed interest rate of 3.73%.

William D. Ford Federal Direct Parent Loan Program (PLUS)

This program allows parents to share the responsibility of financing a college education to help reduce the debt burden of their student. Parents borrow at a fixed rate of 6.28% for the 2021-22 academic year. FAFSA filing is required.

Private Loan Programs

Private Student Loan Programs

Other loan programs are available to allow a student or their parents to finance educational expenses over a longer period of time. These loans offer both fixed and variable interest rates, usually require a co-signor, and should be considered only after federal and institutional loan options have been exhausted.