Loan Products and Definitions
Direct Loans
Interest on Federal Direct Unsubsidized loans begins to accrue upon disbursement. Completion of the Free Application for Federal Student Aid (FAFSA) triggers review of eligibility for Direct Unsubsidized loan. Annual and lifetime loan limits change significantly beginning in the fall of 2026. SeeÌýApply for Financial AidÌýfor a description of the new loan limits. Interest rates and origination processing fees are set annually by the federal government usually in late May or early June. Review the º£½ÇÂÒÂ× Financial Aid Handbook for current year rates.
Federal Direct Grad PLUS loans (for continuing students only) are credit-based and designed to supplement the Direct Unsubsidized Loans for up to the Cost of Attendance. Grad PLUS requires its own application in addition to the FAFSA. See Apply for Financial Aid for the process.
Credit Check and Denials
A credit check is performed during the process of applying for the Grad PLUS loan.Ìý If denied, students may contact the Student Loan Support Center to appeal the credit decision or they may choose to add a loan endorser who co-signs the loan.Ìý You may reach the Student Loan Support Center at 800-433-3243 or online at .
Private Loans
Private loans may not be consolidated (re-financed) with Direct Loans. Variable interest rates plus 3 to 14% additional interest points/fees, dependent on credit score, may apply.
Loan Repayment
Loan repayment plans vary from 10 to 25 years.Ìý Your loan servicer will notify you of the date your first payment is due. If you do not choose a repayment plan, you will be placed on the standard repayment plan, with fixed monthly payments for up to 10 years. While the standard repayment plan is the fastest and least-expensive repayment, alternative payment plans for borrowers with high debt or those who need to make lower payments are available. For further questions about repayment plans, view the links provided and contact your loan servicer.
The federal government offers three :
- Pay As You Earn Repayment Plan (PAYE Plan)
- Income-Based Repayment Plan (IBR Plan)
- Income-Contingent Repayment Plan (ICR Plan)
These plans are designed to make your student loan debt more manageable by reducing your monthly payment amount. If you’d like to repay your federal student loans under an income-driven plan, you need to fill out an application.
Exit Counseling
The Department of Education requires that º£½ÇÂÒÂ× federal loan borrowers complete exit counseling prior to graduation, if enrollment falls below half-time, or if a student ceases to be enrolled (withdraws of skips a semester of enrollment). Exit counseling allows students to update contact information, review various repayment options and serves as consumer awareness. Federal Student Aid wants students to be informed borrowers. The º£½ÇÂÒÂ× Financial Aid Office will send students reminder emails when Direct Loan Exit Counseling should be completed at StudentAid.gov.
