Federal Direct Stafford Loan Program for Graduate Students
Federal Direct Stafford Student Loan - Subsidized
This program allows graduate students who demonstrate federal financial aid eligibility and who are enrolled for at least 6 credits per term (fall and spring terms) or 3 credits per term (summer sessions) to borrow up to $8,500 per academic grade level. The interest rate is fixed at 6.8 percent. Interest does not accrue, nor does repayment begin on subsidized Stafford Loans until six months after termination of university enrollment on a less than half-time basis. Subsidized Direct Loans carry a 2.0% federal origination fee and an up-front interest rebate equal to 1.5% of the loan amount. Net proceeds will equal approximately 99.5% of the loan amount.
Federal Direct Stafford Student Loan - Unsubsidized
This loan allows all students regardless of federal financial aid eligibility and who are enrolled for at least 6 credits per term (fall and spring) or 3 credits per term (summer sessions) to borrow up to $20,500 per academic grade level including any amount borrowed under the subsidized Stafford Loan Program. The interest rate and origination fee are the same as specified above, however, interest accrual begins immediately during in-school and deferment periods. Interest accruing during those periods may be paid or capitalized.
Already have a Stafford loan? Visit the Direct Loan Servicing site.
Federal Direct Graduate PLUS Loan
This program allows graduate students who do not have an adverse credit history to borrow up to the full cost of attendance, less other financial aid received, including Federal Stafford Loans (subsidized and unsubsidized).
The interest is fixed at 7.9%. Interest accrual begins on the date of the first disbursement; the first payment is due within 60 days after the final disbursement. Direct PLUS Loans carry a 4.0% federal origination fee and an upfront interest rebate equal to 1.5% of the loan amount. Net proceeds will equal approximately 97.5% of the loan amount.
Colleges determine eligibility for the Federal Stafford Loan before determining any remaining eligibility for a Federal Graduate PLUS Loan.
PLUS Loans at Loyola University are processed and serviced through the Federal Direct Graduate PLUS Loan Program. The financial aid office will calculate the maximum a student may borrow through the Graduate PLUS Loan program after completion of the Federal Stafford Loan application process.
Students may apply for a Graduate PLUS Loan online by going to www.StudentLoans.gov.
First time borrowers through the Federal Direct Grad PLUS Loan Program must also complete the Federal Direct Grad PLUS Loan Master Promissory Note (MPN) and Entrance Counseling.
Private Alternative Education Loans
Private educational loan programs are non-federal loans issued by banks, savings and loan associations, and credit unions. These programs allow students to borrow up to the full cost of attendance* minus other forms of financial aid. Private educational loans carry variable interest rates based on the LIBOR rate or the Prime rate and repayment periods may range from 5 to 25 years. Interest rates, origination fees, loan maximums, and repayment terms should be carefully considered when researching and choosing a private loan.
Before obtaining an alternative loan, graduate students should compare the terms of the loan with loan assistance available through the Federal Direct Stafford Loan Program. Most private loan programs are not competitive with the Stafford Loan Program and are intended to provide supplemental educational financing.
Once an application is approved by a lender, the school will receive an electronic certification request. The proceeds of private alternative education loans may not be credited to a student's account until the funds are actually received by the University. Therefore, if the loan proceeds will be used to pay a remaining balance due, the loan application process should be completed well in advance of the bill payment due date.
*A students cost of attendance includes actual tuition and fees and standard allowances for books, supplies, and living expenses.
Student Lending Analytics, an independent loan research and advisory firm, provides a website that contains a list of lenders currently offering private alternative educational loans. This Web site also provides a table that compares each lender's minimum and maximum interest rates, origination fees, repayment terms and benefits, and other loan terms and conditions.
The Project on Student Debt, an initiative of the Institute for College Access & Success, a nonprofit independent research and policy organization, offers sound advice and information to consider when applying for a private alternative educational loan.