Loans
Need help understanding the different loans that might be available to you? The information below should give you a good start.
Ready to apply? See how you can apply for a loan.
| What | U.S. government pays interest while in school |
|---|---|
| Amount | $3,500–$5,500; based on financial need and grade level |
| Loan Money Arrives | September and January (half of the loan each semester) |
| Pay Back the Loan | 6 months after graduating, or taking less than 6 units |
| Stay Eligible | Take at least 6 units and maintain satisfactory academic progress (SAP) |
| More Information | studentaid.gov and Plain Language Disclosure for Federal Loans (PDF) |
| 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 |
| Loan Money Arrives | September and January (half of the loan each semester) |
| Pay Back the Loan | 6 months after graduating, or taking less than 6 units |
| Stay Eligible | Take at least 6 units and maintain satisfactory academic progress (SAP) |
| More Information | studentaid.gov and Plain Language Disclosure for Federal Loans (PDF) |
| What | Parent loan to help pay for dependent student’s college costs |
|---|---|
| Amount | Up to Cost of Attendance minus other aid |
| 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) |
| Pay Back the Loan | Early March for most parents (60 days after second disbursement) |
| To Apply | Online at studentloans.gov |
| Stay Eligible | Student takes at least 6 units, and maintain satisfactory academic progress (SAP) |
| More Information | studentaid.gov and Plain Language Disclosure for Federal Loans (PDF) |
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.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?
Learn more about the steps to apply for a loan.
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 have a few options:
- Appeal the decision by contacting Direct Loans.1
- Apply for the PLUS loan with an endorser (co-signer).1
- Have their spouse or the student’s other parent apply
If these options do not work, the student can then take out an additional Direct Unsubsidized Loan (freshmen and sophomores, $4,000; juniors and seniors, $5,000).
Alternative/Private Student Loan
Before applying for a private student loan, we strongly encourage you to first consider applying for federal loans. Federal loans typically offer a better interest rate and repayment/cancellation terms. The terms and conditions of your private loan will vary depending on your private loan lender, but you can find some basic information on private loans below:
| 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 | Maintain satisfactory academic progress (SAP) |
| More Information | elmselect.com |
Footnotes
- 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. ↵