Fund your Undergraduate Degree

Federal Direct Loan eligibility requirements differ between students considered independent for federal student aid purposes and students considered dependent for aid eligibility.  

• Independent students may borrow up to $12,500 per academic year under the Federal Direct Loan program. 
• Dependent students may borrow $7,500 under the Federal Direct Loan program. At that point, parents of these students are expected to seek PLUS loans on behalf of the student (see below). However, if a parent is denied a PLUS loan—usually because of financial problems or unemployment—the dependent student is then eligible to borrow up to the $12,500 maximum. 

Most undergraduate Federal Direct loan borrowers qualify on a need basis to have the first $5,500 of their Federal Direct Loan considered as a subsidized loan. The federal government pays the interest on the borrower's behalf during the time the student is in school. 

Any amounts that do not qualify for subsidized loan status become unsubsidized Federal Direct Loans. The borrower can pay the interest on these loans while in school or can choose to let the interest accumulate and add it to the amount borrowed at the beginning of repayment.  

Interest rates on Stafford loans are set each July 1st. A list of current interest rates can be found at studentloans.gov.  There are origination fees that the Department of Education takes out of your loan.  You can find information about them at:  https://studentaid.gov/understand-aid/types/loans/interest-rates. 

This loan enables parents with good credit histories to borrow funds to pay the educational expenses of each child who is a dependent undergraduate student. The yearly limit on a PLUS loan is equal to the student's cost of education minus any other financial aid received. 

Interest rates on PLUS loans are set each July 1st. A list of current interest rates can be found at www.studentloans.gov. A parent may borrow up to the cost of education minus any other financial aid you receive. There are no annual or aggregate borrowing limits set by the federal government. There is a credit check requirement for the Direct PLUS loan.  Direct PLUS loans have higher origination fees than Stafford loans.  

Private educational loans are also available for students who wish to receive additional resources to cover the gap in funding or to replace federal loans. It is the responsibility of the student to seek out a lender and apply for a private student loan. Private loans require a credit check and may require a co-signer. We encourage students to pay attention to interest rates, fees and repayment terms as these may be different than federal student loans.

You are required to complete an online entrance counseling session at www.studentloans.gov prior to receiving any federal loans.  We also strongly encourage you to complete entrance counseling for private loans, but it is not required.  Exit counseling for federal loans is required within 30 days of your graduation date (either 30 days before or 30 days after).  This is also an online session completed at www.studentloans.gov.  There is no exit counseling required for private loans.  You may also, at any time, make an appointment with someone in the financial aid office to discuss either federal or private loans.