At the time of disbursement you must be
Direct Subsidized Loans
Low interest loan that must be repaid and is based on financial need and grade level. Students must be enrolled part-time (6 semester hours for undergraduate students and 5 semester hours for graduate students) . The government pays the interest for the student while they are in school.
Direct Unsubsidized Loans
Not based on need. Unlike the Subsidized loan, students (not the government) are responsible for paying the interest while in school, during the six-month grace period, and during periods of authorized deferment. Loan repayment begins 6 months after you leave school at variable interest rates with up to 10 years to repay.
Direct PLUS Loans
Credit based loans for parents who may borrow up to the cost of attendance per year, for each child who is a dependent undergraduate student and is enrolled at least part-time. With a fixed interest rate of 8.5% accrual begins at disbursement. Repayment starts 60 days after the first loan check has been disbursed. For more information regarding a Direct PLUS Loan, please go to Federal Student Aid's Direct Loans information for Parents website. Before we can originate a PLUS loan, the student must have a completed FAFSA on file.
Direct Graduate PLUS Loans
Credit based loans for graduate students enrolled at least half-time (in at least 5 credit hours a semester). They may borrow up to the cost of attendance minus all other financial aid received. With a fixed interest rate of 8.5% accrual begins at disbursement. Repayment starts 60 days after the first loan check has been disbursed. Before we can originate a Graduate PLUS loan, the student must have a completed FAFSA on file and already applied for the maximum eligibility of Direct Subsidized/Unsubsidized Loans. To apply, you may go to StudentLoans.gov.
Private (Alternative) Loans
Non-need based programs designed to assist in educational and living expenses based on a student's credit history.
When will I receive my loan funds?
Direct PLUS Loan Counseling
Beginning March 29, 2015, the Department of Education will require Direct PLUS Loan Counseling to be completed by applicants (by parent of dependent undergraduate students as well as graduate/professional students) who are determined to have an adverse credit history, but qualify for a Direct PLUS Loan by obtaining an endorser or by documenting extenuating circumstances. The PLUS Counseling module will be added to the StudentLoans.gov web site for applicants to complete online. The PLUS Counseling is intended to help Direct PLUS Loan applicants:
- Understand the costs and obligations that come with borrowing a PLUS Loan.
- Make careful decisions about taking on student loan debt.
While the completion of the new PLUS Counseling is mandatory only for certain Direct PLUS loan applications with an adverse credit history, as explained above, the new PLUS Counseling will also be made available for all Direct PLUS Loan applicants to complete on a voluntary basis.
NOTE: This requirement is only for new PLUS applications completed on or after March 29, 2015.