Federal and Private Student Loans

The Federal Direct Loan Program provides low-interest loans for students and parents. Students must be enrolled at least half-time (6 credit hours/term) to receive a loan.  An origination/guarantee fee of 1-4% may be assessed prior to each disbursement.The interest rates are determined annually in June. If the student is financially eligible for the loan, the federal government will pay the interest while the student is in school. If they are not financially eligible, the student is responsible for the interest and may pay it while attending school or have it added to the principal for later repayment. Repayment of principal and interest begins six months after the student ceases to be enrolled at least half-time.

Types of Federal Student Loans

Federal Direct Subsidized Stafford Loan

• Up to $3,500 for the first year of undergraduate study (0-29 hours)
• Up to $4,500 for the second year of undergraduate study (30-59 hours)
• Up to $5,500 per year for subsequent undergraduate years (60+ hours)

Undergraduate students may borrow a maximum of $23,000.

Additional Unsubsidized Stafford Loan

Dependent students may borrow $2,000 per year for four years. Independent students may borrow additional amounts listed. The student is responsible for the interest and may pay it while attending school or have it added to the principal for later repayment.

• Up to $4,000 per year for the first two years of undergraduate study (0-59 hours)
• Up to $5,000 per year thereafter (60+ hours)
• Up to $20,500 per year for graduate study

Dependent students may borrow a maximum of $8,000. Independent students may borrow a maximum of $57,500 for undergraduates and $138,500 for graduates, which includes undergraduate loan amounts.

Federal PLUS Loan

Parents of dependent undergraduate students who are enrolled at least half-time (6 credit hours/term) may borrow up to the amount of the student's cost of education minus other aid annually. The Department of Education conducts a credit check on all Direct PLUS loan applications. The interest rates are determined annually in June, and the borrower begins payment within sixty days of the final loan disbursement for the school year. Graduate students may also borrow under the PLUS loan program. They must meet the same credit history requirements, must apply for federal financial aid, and may borrow up to the cost of attendance, less other financial aid. As with Parent PLUS, the interest rate is determined annually. Some lenders may require in-school deferments each term. Go to https://studentaid.gov/plus-app/ to learn more about Parent and/or Graduate PLUS loans.