Loans

Federal Direct loans are the most widely-used loans for college students and are available to both graduate and undergraduate students. There are two types of federal Direct loans and eligibility for both is determined using your financial aid application.

• Loan Types: (Subsidized, Unsubsidized)

Direct PLUS loans can help pay for education expenses not covered by other financial aid. This program requires a separate application and final eligibility is based on credit.

Parent PLUS Loan

The Direct Parent PLUS Loan is a loan option for parents with dependent students to help pay for their educational costs. Parents can borrow up to the cost of attendance minus any other financial aid the student is receiving. Interest begins accruing after the first disbursement. Parents are not required to start making payments on this loan until sixty (60) days after the loan is fully disbursed. Parents may also defer payment if the student is enrolled at least half-time, or during the six (6) month period after the student has graduated or ceases to be enrolled at least half-time. More information about PLUS Loans is available at studentaid.gov

Graduate PLUS Loan

The Direct PLUS Loan is a loan option for Graduate/Professional students to help pay for their educational costs. Students can borrow up to the cost of attendance minus any other financial aid that the student is receiving. Interest begins accruing upon first disbursements. Students are not required to start making payments on this loan until sixty (60) days after the loan is fully disbursed. Students may also defer payment if the student is enrolled at least half-time, or during the six (6) month period after graduation, or after the student drops below half-time enrollment. More information about PLUS Loans is available at studentaid.gov

How to Apply

Parents and students should complete and submit a Parent PLUS Loan Request Form or Graduate PLUS Loan Request Form available in Student Forms.  All information provided should be printed clearly and legibly. Incomplete Forms and/or forms with information that is un-readable will not be processed. The Financial Aid and Scholarships Office reserves the right to certify the Parent PLUS Loan for the requested amount or up to the student's annual Cost of Attendance (COA) less any other aid the student has been awarded (i.e. grants, loans, scholarships). 
 

PLUS Loan Disbursement

Parents who complete and submit the Parent PLUS Request Form provide authorization for PLUS loan funds to pay any outstanding University charges on the student's account (i.e. registration, housing, etc.) Parent PLUS funds “ in excess” of University charges will be mailed to the parent borrower.  Parents may then use the excess funds to assist the student with his/her other educational and living expenses.

Graduate students who complete and submit the Federal Graduate PLUS Loan Request Form provide authorization for the GRAD PLUS loan funds to pay any outstanding University charges on their account (i.e. registration, housing, etc.). Any GRAD PLUS funds “in excess” of University charges will be mailed to the student borrower by the Disbursement Office. Students may then use the excess funds to assist with his/her other educational and living expenses.

It is important for student borrowers to know loan balance amounts and repayment options both before and after graduation. We encourage students to work with their loan servicers and the U.S. Department of Education to stay informed about their loans. Students should make regular monthly payments on loans in order to maintain a good credit rating. Complete loan repayment information is available at Repay Your Loans.

Repayment calculators

Once a student drops below half-time enrollment, leaves school or graduates, their federal student loans go into repayment.  Loans are automatically placed in a standard repayment plan, but students can contact their loan servicer to choose a different repayment plan that works for them. Available repayment plans are listed below. Use the Federal Loan Simulator Tool to see which repayment plan is best for you.

Repayment Plans

• Standard Plan
• Graduated Plan
• Extended Plan
• Income-Based Plan
• Income-Contingent Plan
• Pay as your Earn Plan

Reaffirmation Process

If you mistakenly received federal student loan funds under the Direct Loan Program in excess of your borrowing limit, you are ineligible for additional federal student aid unless you repay the excess loan amount in full, or agree to repay the excess loan amount in accordance with the terms of the promissory note that you signed. Agreeing to repay the excess loan amount in accordance with the terms of the promissory note is called “reaffirmation.” You can reaffirm an excess loan amount by signing a reaffirmation agreement with your loan servicer. 

To begin the reaffirmation process and re-establish your eligibility for federal student aid, complete the following steps:

1. Download and fill out the Department of Education Reaffirmation Letter 
2. Bring the Reaffirmation Letter to Financial Aid and Scholarships Office in person to complete section 3. 
3. Submit the completed Reaffirmation Letter to your loan servicer and wait for them to send you a confirmation letter acknowledging their receipt of your Reaffirmation Letter.
4. Submit a copy of the Confirmation Letter to Financial Aid and Scholarships via Student Forms. 

In certain situations, student loans can be forgiven, canceled, or discharged. The terms “forgiveness,” “cancellation,” and “discharge” mean essentially the same thing.  Below are descriptions of several forgiveness programs, each with different eligibility requirements. Additional program details available at Federal Student Aid Loan Debt Relief

Teacher Loan Forgiveness

• Borrowers of Direct and FFEL Subsidized/Unsubsidized Loans (Stafford Loans) may be eligible for loan forgiveness based on teaching service. Eligibility requirements for Teacher Loan Forgiveness are available at the Department of Education - Teacher Loan Forgiveness website. 

Public Service Loan Forgiveness

• The PSLF Program was established by Congress in 2007 to allow eligible borrowers to qualify for forgiveness of the remaining balance of their William D. Ford Federal Direct Loan after they have served full-time at a public service organization for at least 10 years, while making 120 qualifying payments.

• Loan Terminology
• Aggregate Loan Limits
• Loan Consolidation Options
• Loan Deferment and Forbearance Options
• Student Loan Default & Obligations

 

What is Total and Permanent Disability?

If you demonstrate that you are totally and permanently disabled, you can apply to have your federal student loans discharged. Eligible loans include:

• Loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program,
• Loans made under the Federal Family Education Loan (FFEL) Program,
• Loans made under the Federal Perkins Loan (Perkins Loan) Program,
• A TEACH Grant, which requires you to complete a service obligation

You must apply for discharge and provide documentation that you are totally and permanently disabled. Full details regarding the TPD Discharge process is available on the Federal Student Aid website.

What happens if I want to return to school and receive new loans after receiving a TPD discharge? 

When you submit the Free Application for Federal Student Aid (FAFSA) after receiving a TPD Discharge, the US Department of Education will notify Financial Aid and Scholarships of the discharge. You will be prompted to log into Student Forms and provide documentation for further review. You may have to repeat this process on an annual basis if your FAFSA indicates you have an active discharge.

If you previously applied for TPD and your TPD discharge was approved, and you wish to borrow a new Direct Loan or TEACH grant, you must submit the following documents to Financial Aid and Scholarships. 

• Discharge Disability Acknowledgement Form
  • Required from all students 
     
• Physician's Statement  (click on link to access the form)
  • Required from student's who wish to borrow additional Federal Loans or TEACH grant. 
     
• Discharge Clearance Letter (click on link to access the form)
  • Required from students whose loans were previously discharged and are past the 3-year post discharge monitoring period. 
     
  • Required from students whose loans were previously discharged and are not past the 3-year discharge monitoring period. 

Please note:  if you are approved for TPD discharge based on SSA documentation or a licensed medical professional’s certification, and you request a new Direct Loan, Perkins Loan, or TEACH Grant during your 3-year post-discharge monitoring period, you must resume repayment on the previously discharged loans or acknowledge that you are once again subject to the terms of your TEACH Grant service obligation before you can receive the new loan or TEACH Grant.