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Loans

By completing the FAFSA, you will be considered for the Federal Stafford Loan program. Direct Loans are funded by the U.S. Department of Education through your college and are managed by a loan servicer. 

There are two types of Federal Stafford Loans: Direct Subsidized Loans and Direct Unsubsidized Loans. Find the details about both programs to make an informed decision about funding your college education.  Approximately 15% of eligible students accept and receive loans.


Direct Subsidized Loans

Your eligibility for the Direct Subsidized Loan is based on your financial need and your undergraduate academic level. Repayment is deferred until six months after you graduate or cease to be enrolled at least half-time. The government pays the interest while you are enrolled in school. Direct Subsidized Loan maximums vary according to academic level and dependency status. In addition, there are lifetime loan limits.


Direct Unsubsidized Loans

Your eligibility for the Direct Unsubsidized Loan is not based on financial need. You may borrow the cost of education minus all other financial aid you receive, up to the Direct Loan maximum for your academic level. Interest on Direct Unsubsidized Loan begins to accrue from the date of disbursement.

You have two choices for paying interest

  1. You may pay it while you are enrolled full-time through your Federal Loan Servicer
  2. The interest can accrue and become part of the principal that you will owe. You begin making payments through your Federal Loan Servicer six months after you graduate or cease to be enrolled at least half time.


Additional Sources of Information:

graduation cap and education fund

More Loan Options

Direct Plus Loans (for Parents)

The Direct PLUS Loan is a federal loan program for parents of dependent undergraduate students. Generally, parents are eligible if they have a good credit history, are not in default on a federal student loan, and meet the other eligibility requirements outlined in the PLUS Loan application. Parents may borrow up to the amount of the cost of education minus other financial aid received, including any other educational loans. The interest rate is fixed and there is an origination fee that is deducted from the loan before disbursement.

Your Direct PLUS Loan enters repayment once your loan is fully disbursed (paid out) unless you request a deferment. Parent Direct PLUS Loan borrowers may choose from several repayment options. Your loan servicer will notify you when your first payment is due.

To submit a Direct PLUS Loan application, please visit Financial Aid Forms and find the Federal Direct Parent PLUS Loan Request for your correct school year.

 

Private Loans

Private loans are non-federal educational loans that are typically offered by private lenders to assist with educational and living expenses not covered by other financial aid. In general, you may borrow up to the cost of education minus all other financial aid you receive. Your eligibility for a private loan is determined by the difference between your total Cost of Attendance and any other financial aid.

For many students and parents, private loans are an important resource to help pay for educational expenses. Private loans can help fill the gap between need-based financial aid and your total educational costs.

Learn More About Private Loans