Loans

Federal Loan Options

• Federal Direct Subsidized/Unsubsidized Loans

  Federal Direct Subsidized/Unsubsidized Loans are the most widely-used loans for undergraduate students. If you submit the Free Application for Federal Student Aid (FAFSA), you'll have at least one of these loans offered as a part of their financial aid package.

  Eligibility:

  These loans are available to every student in a degree-seeking program who submitted a valid FAFSA. Subsidized loans are offered to students deemed to have financial need, while unsubsidized loans are available for all students.

  Maximum Loan Amount:

  	Class	Maximum Total	Maximum Subsidized
  Dependent Students:	1st-Year Students	$5,500	$3,500
  	2nd-Year Students	$6,500	$4,500
  	3rd- and 4th-Year Students	$7,500	$5,500
  Independent Students:	1st-Year Students	$9,500	$3,500
  	2nd-Year Students	$10,500	$4,500
  	3rd- and 4th-Year Students	$12,500	$5,500

  Video: Federal Direct Student Loan Limits

   
  Interest Rate:

  • For loans borrowed during the 2024-25 academic year: 6.53%

  
  These interest rates are fixed for the life of the loan.

  For subsidized loans, the U.S. Department of Education pays the interest while you're enrolled at least half time (six credits or more). Interest accrues on unsubsidized loans while you are in school and on both types of loans after you leave school. You can pay the interest as it accrues, if you wish. If not paid, interest will be capitalized when repayment begins.

  Origination Fee: 

  A loan origination fee is deducted at disbursement of each installment of the loan. For loans first disbursed on or after Oct. 1, 2020 and before Oct. 1, 2025, the fee is 1.057%.

  Requirements to receive loan:

  You must complete both a Master Promissory Note and Entrance Counseling online at StudentAid.gov and remain enrolled at least half-time (six credits or more).

  Repayment:

  You're not required to make any payments while in school. Repayment begins six months after you graduate, withdraw or drop below half-time enrollment. Payments are made to your Direct Loan servicer each month. The minimum payment is $50, but that amount will likely be higher depending on the total amount borrowed.

  The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan.

   

  Learn More About Direct Loans

• Federal Direct Parent PLUS loan

  The Federal Direct Parent Loan for Undergraduate Students (Parent PLUS loan) is a credit-based loan available to parents of dependent undergraduate students. Students will not have this loan included in their financial aid offer. Parents must apply separately for this loan via StudentAid.gov and may borrow up to the student's total cost of attendance, minus all other financial aid.

  Video Playlist: Parent PLUS Loan Overview

  

   
  Eligibility: 

  The Parent PLUS loan is available to credit-worthy parents of dependent undergraduate students who have submitted a FAFSA, regardless of financial need. To be approved, the parent must not have an adverse credit history.

  Conditions that result in an adverse credit history include:

  • One or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent or that have been placed in collection or charged-off (written off) during the two years preceding the date of the credit report.
  • Having been subject to any of the following conditions during the five years preceding the date of the credit report:
    •  
      • Default determination
      • Discharge of debts in bankruptcy
      • Foreclosure
      • Repossession
      • Tax lien
      • Wage garnishment
      • Write-off of a federal student aid debt

  
  Students are considered to be independent if they are: at least 24 years old; married; have children; a graduate student; a veteran; a member of the armed forces; an orphan, ward of the court, or homeless. If none of those apply, they are considered to be dependent for federal student aid purposes.

  Options if Denied: 

  If you are denied a Parent PLUS loan because of adverse credit, you may...

  • Reapply with a credit-worthy cosigner.
  • Appeal the denial with the Department of Education if there are extenuating circumstances related to your credit history that you can document.
  • Contact us--your student may be eligible for an additional Federal Direct Unsubsidized loan.

  
  Maximum Loan Amount: 

  Up to your total cost of attendance, minus all other financial aid.

  Interest Rate: 

  Parent PLUS loans offer interest rates that remain fixed for the life of the loan.

  • For loans borrowed during the 2024-25 academic year: 9.08%

  
  Interest accrues while the student is in school, during any grace period, and during repayment. You can pay the interest as it accrues if you wish. If not paid, interest will be capitalized when repayment begins.

  Origination Fee: 

  A loan origination fee is deducted at the disbursement of each installment of the loan. For loans with a first disbursement on or after Oct. 1, 2020, and before Oct. 1, 2025, the fee is 4.228%.

  How to Apply: 

  You must sign in to StudentAid.gov using your own FSA ID, request a PLUS loan, and complete a Master Promissory Note (MPN).

  A credit check will be conducted once you begin the loan application process. If you were initially denied the Parent PLUS loan but have since qualified by obtaining an endorser or documenting extenuating circumstances, you will also be required to complete PLUS Counseling. This can be completed through StudentAid.gov as well.

  Once you're approved, the Department of Education will send us confirmation of your loan approval and the details of the requested amount. The loan will be added to your student's financial aid award after processing.

  Repayment: 

  Repayment begins 60 days after the last disbursement of the loan. However, repayment can be deferred while the student is enrolled at least half-time and for an additional six-month grace period after the student graduates. Payments are made to your Direct Loan servicer each month. The minimum payment is $50, but that amount will likely be higher depending on the total amount borrowed.

  The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan.

   

  Learn More About PLUS Loans

Private Education Loans

Many financial institutions offer private student loans, sometimes called alternative loans. These programs may offer interest rates and terms that are competitive with those of federal loans. However, federal student loans are legally required to provide a range of repayment options, including income-based repayment plans and loan forgiveness benefits. Private loans are not required to offer any such flexibility. Since Federal Direct loans are available to all students regardless of financial need, they often represent a preferable funding option. Learn more about federal versus private loans.

• Details and Historical Lender List

  Interest rates, origination fees, and repayment information all vary widely from lender to lender. If you pursue a private education loan, you will need to apply directly through the lender of your choice. Apply early as processing may take several weeks. As part of the application process, you will be required to complete the Private Education Loan Applicant Self-Certification Form, available through each lender's website. Information needed to complete this form, such as cost of attendance, can be obtained from either your financial aid offer or via My4D.

  Eligibility: Private education loans are available to all credit-worthy students (no FAFSA needed). Eligibility for private loans varies among lenders, but a credit check and/or debt-to-income ratio is usually required. A co-borrower may also be required.

  Maximum Loan Amount: Up to your total cost of attendance, less all other financial aid.

  Historical Lenders: We maintain a historical list of institutions that have provided loans to DU borrowers. Lenders included on this list have issued loans to at least five unique DU borrowers within the last five years. You can view this list through ELMSelect, which allows you to compare lenders by interest rate and repayment benefits.

  We will certify loan requests from all lenders, including those that do not appear on our private loan lender list. Loans will first pay toward your charges. If you have borrowed an amount greater than your bill, the Office of Student Billing will generate a refund to you for the difference.

Historical Lender List