Admission & Financial Aid

Loans

Loans are amounts borrowed which must be repaid according to the terms and conditions of the loan program. Federal loans are insured through the US Department of Education, which may provide safeguards to the borrower such as deferment, forbearance, and forgiveness options. Private loans are issued through lending institutions and are generally exempt from those federal benefits.

The following federal student loans are available to students who qualify. These loans are not based on credit approval, but do require submission of a FAFSA every year:

Federal Direct Subsidized Loan

– A low-interest loan available to students who demonstrate financial need

Interest is subsidized (paid by the federal government) while the student is in school. Repayment begins six months after the student borrower ceases to enroll at least half-time. For undergraduate student borrowers, the current interest rate is 3.86% during repayment.

For new student borrowers, there is a limit on the length of time a student can receive subsidized student loans. The maximum time frame is 150% of the student's expected program length. More information on this limitation is available from the Department of Education.

Federal Direct Unsubsidized Loan

– A low-interest loan for students who are not eligible, or only partially eligible, for a Direct Subsidized Loan

Interest begins accruing at the time of the first loan disbursement. Students may choose to pay the interest while in school or let it accrue, to be added to the principal amount of the loan. Repayment of the combined interest and principal begins six months after the student ceases to be enrolled at least half-time. For undergraduate student borrowers, the fixed interest rate is currently 3.86% during repayment.

UNDERGRADUATE FEDERAL STUDENT LOAN LIMITS – BASED ON GRADE LEVEL

 

Freshmen
(1-29 cr hrs)

Sophomore
(30-59 cr hrs)

Junior
(60-89 cr hrs)

Senior
(90-120 cr hrs)

Subsidized Loan

$3,500

$4,500

$5,500

$5,500

Unsubsidized Loan

$2,000

$2,000

$2,000

$2,000

Dependent students whose parent is denied credit approval for a Federal Parent PLUS Loan may be eligible to borrow additional unsubsidized loan funding.

Federal Perkins Loan

 – Awarded to undergraduate students demonstrating exceptional need

The interest rate during repayment is 5%. Loan repayment begins nine months after the student ceases to be enrolled at least half-time. Depending on the principal balance, a borrower may have up to ten years for repayment of the loan. The Perkins loan may be consolidated with other federal student loans. 


 The following additional loan options may be available, subject to credit approval:

Federal Parent Loans for Undergraduate Students (PLUS)

 – Available to credit-approved parents of undergraduate students to cover additional educational expenses

The maximum loan amount is determined by subtracting the total financial assistance received from the total cost of attendance. Repayment (principal and interest) begins 60 days after the second disbursement, but may be deferred while the student is enrolled at least half-time.  The current fixed interest rate for parent borrowers is 6.41%. The student must have a FAFSA on file in order to receive PLUS loan funding.

If a parent is denied credit approval for a PLUS loan, there are a few options:

1.      The parent may appeal the credit decision to the Department of Education,

2.      The parent may add a credit-approved endorser in order to secure the requested PLUS loan amount, OR

3.      The student may be eligible to borrow additional unsubsidized student loan funds.

Parents can begin the PLUS application process here.

Private (or "Alternative") Educational Loans

 –Non-federal loans available to credit-worthy student borrowers and/or cosigners to cover additional educational expenses

The maximum loan amount a student may borrow is determined by subtracting the total financial assistance received from the total cost of attendance.

Interest rate and repayment options vary, based upon the lender and loan program you select. Because these loans vary greatly in their terms and do not carry the same safeguard benefits as the Federal loans, it is strongly recommended that students maximize their Federal funding before pursuing private loan options.