Loans

Your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year.  However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. This first step in applying for any Federal Loan is to complete the FAFSA. 



Federal Direct Subsidized Loans

Direct Subsidized Loans are available to undergraduate students with financial need only. Interest does not accrue on these loans so long as a student is enrolled at least half time.

Federal Direct Loan borrowers taking their first loan on or after July 1, 2013 may qualify for a subsidized Direct Loan for a maximum of 150% of the length of their academic program. Students will be limited to receiving subsidized loans 6 years in a 4 year program. Students reaching this limitation could receive unsubsidized loans if eligible. Additionally, borrowers who reach the 150% limitation will have their interest subsidy end for all outstanding subsidized loans. This loan is commonly referred to as Direct Stafford Loan. This loan requires one time Entrance Loan Counseling and completion of Master Promissory Note.

Top

Federal Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to undergraduate and graduate students; and there is no requirement to demonstrate financial need. The school will determine the amount a student can borrow based on cost of attendance and other financial aid received. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal). This loan is commonly referred to as Direct Stafford Loan. This loan requires one time Entrance Loan Counseling and completion of Master Promissory Note.

Top

Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Federal Direct Parent Loan for Undergraduate Students (PLUS) is not based on financial need and is limited to a parent borrower for a dependent student attending at least half-time. To receive a Direct PLUS Loan, you (or your child, if you are a parent PLUS borrower) must complete the Free Application for Federal Student Aid (FAFSA®), and complete and application at www.studentloans.gov. A parent is currently defined as a person's natural or adoptive mother or father, or the step-parent married to the custodial parent. The annual limit is equal to the student's cost of attendance, minus any other financial aid the student is receiving. Parents are required to pass a credit check. PLUS loans carry a fixed interest rate and an origination fee. 

Top

Federal Graduate PLUS Loan for Graduate Students (Grad PLUS)

The Federal Graduate PLUS Loan for Graduate Students (Grad PLUS) is not based on financial need and is limited to graduate and professional level students attending at least half-time. To receive a Direct Grad PLUS Loan, the student borrower must complete the Free Application for Federal Student Aid (FAFSA®), and complete and application process at www.studentloans.gov. The annual limit is equal to the student's cost of attendance, minus any other financial aid the student is receiving. Direct Lending checks each applicant to ensure he/she has no adverse credit history. Not having established credit is not the same as having adverse credit history. Not having established credit does not prevent one from applying for the Graduate PLUS Loan. PLUS loans carry a fixed interest rate and an origination fee.

Top

Alternative/Private Loans

For Graduate or Undergraduate Students –Students who do not qualify for federal financial aid, or who need additional funds beyond what federal financial aid can provide, have an option of applying for an alternative (private or non-federal) educational loan. Alternative loans are generally more expensive, therefore should only be considered if absolutely necessary. In most cases, the student applicant's credit and/or co-signer's credit must be approved by the lender. The eligible loan amount can be no greater than the Cost of Attendance minus all other Estimated Financial Aid. Completing the FAFSA is not a requirement for the Private Alternative Loans. Click here for information and to apply for an Alternative/Private Loan.

Top