Borrow Carefully

Although student loans are a convenient source of funding for your education, it is important to borrow carefully. A better understanding of Federal Student Loan borrowing, interest rates, loan fees, and additional information can be found at Federal Student Aid.

If you borrow a federal student loan, you will be required to complete your Entrance Counseling and complete and sign a Master Promissory Note – MPN agreeing to the terms of the loan. You will need your FSA ID (FSA ID you created when you signed your FAFSA form) to complete the Entrance Counseling and MPN requirements.

Federal Direct Loan (Subsidized and Unsubsidized)

Federal Direct Loan is a fixed interest rate loan providing funds directly from the Federal government to help pay for a student’s education. Subsidized means the government is paying the interest for a student during school. Unsubsidized means that interest is accruing during school and during a six-month grace period after a student graduates or if a student drops below at least half-time enrollment. There are fees associated with this loan.
Eligible students must demonstrate need and be enrolled in at least 6 credits per semester.
Dependent first year students may borrow up to $5,500 per academic year; dependent second year students may borrow up to $6,500 per academic year. Repayment begins six months after the date of graduation or if a student drops below at least half-time enrollment (6 credits).

Federal Direct Parent Loan for Undergraduate Students (PLUS)

Federal Direct Parent Loan for Undergraduate Students (PLUS) is a fixed interest rate loan providing funds directly from the Federal government to help pay for dependent student’s education. There are fees associated with this loan, and the parent is responsible for repayment of this loan. Parents can apply here. Parents applying for this loan will need to login with their (parent, not student) FSA ID information.

Alternative Loans (use as a last resort)

The Alternative Loans are designed to help you fill the gap between your financial aid award, your federal loans, and your total education cost. Interest rates, application requirements, fees, and incentives will vary from lender to lender. Learn more about Alternative Loans.

If you’re struggling financially, you have multiple payment options when payment resumes on May 1, 2022.

If you are worried you won’t be able to make your next payment after the payment suspension ends, you have options. ED offers a variety of income-driven repayment (IDR) plans based on your income. Under an IDR plan, payments may be as low as $0 per month.

If you’re unsure about your next payment amount, you can also contact your loan servicer to confirm your upcoming payment amount. This info may be available to you online by logging in to your loan servicer’ s website. If you don’t know you loan servicer or can’t log in, call us at 1-800-4-FED-AID (1-800-433-3243) for loan servicer info.

Read 6 Ways to Prepare for Student Loan Repayment to Begin May 1, 2022.