Education loans are usually repaid after graduation, may be deferred until after graduate school, and often have very low interest rates.

Federal Loans

Any student who wishes to apply for federal programs must be a U.S. citizen, permanent resident, or eligible noncitizen.

Federal Direct Stafford Loan

As of the 2009–10 academic year, Azusa Pacific began implementing the Direct Loan Program, requiring students to borrow their Stafford Loans directly from the U.S. government.

The Stafford Loan is a low-interest loan (6.8 percent or less) designed to help students pay for college. Depending on eligibility as determined by the FAFSA, students may be offered a subsidized and/or unsubsidized Stafford Loan. Subsidized means the government will pay the interest on the loan while the student is in school. Unsubsidized means the student is responsible to pay the interest on the loan while in school.

Yearly Amounts

  • Freshmen (0–27 units): $5,500 (up to $3,500 of which may be subsidized)
  • Sophomores (28–59 units): $6,500 (up to $4,500 of which may be subsidized)
  • Juniors and seniors (60+ units): $7,500 (up to $5,500 of which may be subsidized)

If the student is independent or the parent is denied a PLUS loan, the student can take out an additional Stafford unsubsidized loan (freshmen and sophomores, $4,000; juniors and seniors, $5,000).

All students applying for a Stafford Loan must:

  • Complete the FAFSA.
  • Accept their Stafford Loan(s).
  • Complete Direct Stafford Loan entrance counseling online at
  • Complete a Direct Stafford Master Promissory Note (MPN) at

Federal Direct PLUS Loan for Parents

The Federal Direct PLUS Loan is a low-interest (fixed 7.9 percent) educational loan that parents may apply for to help their dependent student pay for college. Parents may borrow any amount up to the student’s Cost of Attendance (COA), minus any other aid he or she is receiving. The COA is a general budget, which factors in typical student costs (tuition, fees, room, board, books, miscellaneous expenses, etc.). For example, if the COA is $28,000 and a student’s grants, scholarships, and loans equal $18,000, then a parent could apply for $10,000.

Unlike the student’s Stafford loan, the PLUS loan is based on credit-worthiness. If a parent applies for a PLUS loan and is denied, his or her student is then eligible to take out an additional unsubsidized Stafford loan ($4,000/year for freshmen and sophomores; $5,000/year for juniors and seniors).

Alternative Loans

Alternative loans involve a separate application, eligibility, and approval process by the lending agency, and require that tuition be paid in full before any refund is given. If you would like further information about loan lenders, eligibility, rates, subsidization, and more, read more about alternative loans and apply online. After the application is complete, contact your program representative directly at (855) 276-8669 or via email.

For more information, contact Student Financial Services at or (626) 857-2461.