Loans

Need help understanding the different loans that might be available to you? The chart below should give you a good start.

Ready to apply? Visit the Apply for a Loan page.

Direct Student Subsidized Loan

What U.S. government pays interest while in school
Amount $3,500–$5,500; based on financial need and grade level
Fee U.S. government takes 1.072% before you get the loan
Loan Money Arrives September and January (half of the loan each semester)
Interest Rate 4.45%
Pay Back the Loan 6 months after graduating, or taking less than 6 units
Stay Eligible Take at least 6 units and get good grades (SAP)
More Information studentaid.gov

Direct Student Unsubsidized Loan

What Student pays interest while in school
Amount $2,000–$7,500; based on Subsidized Loan amount
Additional Amount $4,000–$5,000; if PLUS Loan is denied or independent
FeeU.S. government takes 1.072% before you get the loan
Loan Money Arrives September and January (half of the loan each semester)
Interest Rate 4.45%
Pay Back the Loan 6 months after graduating, or taking less than 6 units
Stay Eligible Take at least 6 units and get good grades (SAP)
More Information studentaid.gov

Direct Parent PLUS Loan

What Parent loan to help pay for dependent student’s college costs
Amount Up to Cost of Attendance minus other aid
Fee U.S. government takes 4.288% before you get the loan
If PLUS Loan is Denied Student receives additional Unsubsidized Loan: $4,000–$5,000
Loan Money Arrives September and January (half of the loan each semester)
Interest Rate 7.00%
Pay Back the Loan Early March for most parents (60 days after second disbursement)
To Apply Online at studentaid.gov
Stay Eligible Student takes at least 6 units, and gets good grades (SAP)
More Information studentaid.gov

What is a Parent PLUS Loan?

Parent PLUS Loans are loans for parents of dependent undergraduate students to borrow up to the cost of attendance, minus all other financial aid.

Parent Borrowers should be aware that Parent PLUS loans are subject to credit approval by the Department of Education. For more information and frequently asked question, please visit studentaid.ed.gov.

What is the maximum PLUS Loan Amount?

The maximum PLUS Loan amount a parent can borrow each academic year is calculated by subtracting other financial aid from the cost of attendance.

Example
Student A is a first-year dependent undergraduate student. Her cost of attendance for Fall and Spring terms is $52,496 and her financial aid (such as grants, scholarships, and student Direct loans) totals $37,399. Her parents would be able to borrow up to $15,097 in a Parent PLUS Loan.

PLUS Loan Eligibility
$52,496 (Cost of Attendance)
-$37,399 (Other Financial Aid)
$15,097 Max PLUS Loan Amount

How do I apply for a Parent PLUS Loan?

  1. Complete a FAFSA (Free Application for Federal Student Aid)
  2. Complete a Direct PLUS Loan Master Promissory Note
  3. Submit an online PLUS Loan Request at StudentLoans.gov

When will I receive the funds from the PLUS Loan?

Once the student’s financial aid file is complete, the PLUS Loan usually disburses into the student’s APU account during the first month of the semester (first half of the loan in fall, the second half in spring), or later depending on when documentation is received.

What if I’m denied a PLUS Loan?

Parents may:

  1. Appeal the decision by contacting Direct Loans.*
  2. Apply for the PLUS loan with an endorser (co-signer).*
  3. The student can then take out an additional Direct Unsubsidized Loan (freshmen and sophomores, $4,000; juniors and seniors, $5,000).

*If the parent borrower was originally denied the PLUS Loan based on adverse credit and was then later approved (or obtained an endorser), the parent must complete PLUS Credit Counseling online. The Parent PLUS Loan will not disburse to the student’s APU account until the credit counseling is completed.

Alternative/Private Student Loan

What Student loan, borrowed from a private bank
Amount Up to Cost of Attendance minus other aid
Fee Check with lender
Loan Money Arrives September and January (half of the loan each semester)
Interest Rate Check with lender
Pay Back the Loan Check with lender
Stay Eligible Get good grades (SAP)
More Information elmselect.com

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