A loan, unlike scholarships and grants, must be repaid. There are two types of loans available to students: subsidized and unsubsidized. With a subsidized loan, such as the Subsidized Direct Stafford Loan, the government pays the interest on the loan while the student is in school, during the six-month grace period, and during any deferment periods. Subsidized loans are awarded based on financial need and may not be used to finance the family contribution. With an unsubsidized loan, the borrower is responsible for the interest from the date the loan is disbursed, even while the student is still in school. Unsubsidized loans are not based on financial need and may be used to finance the family contribution.
- Federal Direct Loan Program ($3,500 Freshman, $4,500 Sophomore, $5,500 Junior, $5,500 Senior) includes both subsidized and unsubsidized loans and provides low interest loans to qualified students who need to borrow to help pay for college Eligibility is determined from the processed FAFSA. The required Master Promissory Note (MPN) must be completed online at www.studentloans.gov.
- Federal Parent Loans for Undergraduate Students (PLUS) generally benefit borrowers who require funds in excess of what can be borrowed under the Stafford Loan Program. The borrower will be notified when payments are to begin and is allowed at least 5 years, but no more than 10 years to repay. The borrower must repay the full amount plus interest, which is at a variable rate that cannot exceed 9%. Repayment of PLUS loans must begin 60 days after the last disbursement. Loan amounts may not exceed the total educational expenses less any financial aid awarded. An application request and credit check form may be obtained through the Office of Financial Aid. The required Plus Master Promissory Note (MPN) must be completed at www.studentloans.gov.