Undergraduate Loans
Many undergraduate students choose to fund their education through carefully considered borrowing. When managed correctly, loans can be invaluable tools for financing your education, as many educational loans offer more favorable terms than consumer loans. Of course, since all loans must be repaid, you should explore all of your options and only borrow what you absolutely need.
Federal Loan Options
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Federal Direct Subsidized Loans
Federal Direct Subsidized/Unsubsidized Loans are the most widely-used loans for undergraduate students. If you submit the Free Application for Federal Student Aid (FAFSA), you'll have at least one of these loans offered as a part of their financial aid package.
Eligibility: These loans are available to every student in a degree-seeking program who submitted a valid FAFSA. Subsidized loans are offered to students deemed to have financial need, while unsubsidized loans are available for all students.
Maximum Loan Amount:
Class Maximum Total Maximum Subsidized Dependent Students*: 1st-Year Students $5,500 $3,500 2nd-Year Students $6,500 $4,500 3rd- and 4th-Year Students $7,500 $5,500 Independent Students*: 1st-Year Students $9,500 $3,500 2nd-Year Students $10,500 $4,500 3rd- and 4th-Year Students $12,500 $5,500 *You are considered to be an independent student if you are: at least 24 years old; married; have children; a graduate student; a veteran; a member of the armed forces; an orphan, ward of the court, or homeless. If none of those apply, you are considered to be a dependent student for federal student aid purposes.
For subsidized loans, the U.S. Department of Education pays the interest while you're enrolled at least half time (six credits or more). Interest accrues on unsubsidized loans while you are in school and on both types of loans after you leave school. You can pay the interest as it accrues, if you wish. If not paid, interest will be capitalized when repayment begins.
Requirements to receive loan: You must complete both a Master Promissory Note and Entrance Counseling online at studentaid.gov and remain enrolled at least half-time (six credits or more).Repayment: You're not required to make any payments while in school. Repayment begins six months after you graduate, withdraw or drop below half-time enrollment. Payments are made to your Direct Loan servicer each month. The minimum payment is $50, but that amount will likely be higher depending on the total amount borrowed.
The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan.
Learn more about Federal Student Aid.
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Federal Direct Parent PLUS Loan
The Federal Direct Parent Loan for Undergraduate Students (Parent PLUS loan) is a credit-based loan available to parents of dependent undergraduate students. Students will not have this loan offered on their award letter. Parents must apply separately for this loan via studentaid.gov and may borrow up to the student's total cost of attendance, minus all other financial aid.
Eligibility: The Parent PLUS loan is available to credit-worthy parents of dependent undergraduate students who have submitted a FAFSA, regardless of financial need. To be approved, the parent must not have an adverse credit history.
Conditions that result in an adverse credit history include:
- One or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent or that have been placed in collection or charged off (written off) during the two years preceding the date of the credit report.
- Having been subject to any of the following conditions during the five years preceding the date of the credit report:
- Default determination
- Discharge of debts in bankruptcy
- Foreclosure
- Repossession
- Tax lien
- Wage garnishment
- Write-off of a federal student aid debt
Students are considered to be independent if they are: at least 24 years old; married; have children; a graduate student; a veteran; a member of the armed forces; an orphan, ward of the court, or homeless. If none of those apply, they are considered to be dependent for federal student aid purposes.Options if Denied: If you are denied a Parent PLUS loan because of adverse credit, you may...
- Reapply with a credit-worthy cosigner.
- Appeal the denial with the Department of Education if there are extenuating circumstances related to your credit history that you can document.
- Contact us—your student may be eligible for an additional Federal Direct Unsubsidized loan.
Maximum Loan Amount: Up to your total cost of attendance, minus all other financial aid.
Interest accrues while the student is in school, during any grace period and during repayment. You can pay the interest as it accrues, if you wish. If not paid, interest will be capitalized when repayment begins.
How to Apply: You must sign into studentaid.gov using your own FSA ID, request a PLUS loan and complete a Master Promissory Note (MPN).A credit check will be conducted once you begin the loan application process. If you were initially denied the Parent PLUS loan but have since qualified by obtaining an endorser or documenting extenuating circumstances, you will also be required to complete PLUS Counseling. This can be completed through studentaid.gov as well.
Once you're approved, the Department of Education will send us confirmation of your loan approval and the details of the requested amount. The loan will be added to your student's financial aid award after processing.
Repayment: Repayment begins 60 days after the last disbursement of the loan. However, repayment can be deferred while the student is enrolled at least half-time and for an additional six-month grace period after the student graduates. Payments are made to your Direct Loan servicer each month. The minimum payment is $50, but that amount will likely be higher depending on the total amount borrowed.
The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan.
