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Federal Direct Unsubsidized Loans
Due to the termination of the federal loans subsidy ("Subsidized Loans") at the graduate level (per the Budget Control Act of 2011) the Federal Direct Unsubsidized Loan program (Title IV) remains the most popular student loan program available for graduate-level students. Unsubsidized loans are available to every student who completes a FAFSA. Interest begins accruing 120 days from the time of disbursement, however the student is not required to make any payments while in deferment status.
Details:
- 6.8% fixed interest rate
- 1.05% origination fee
- Eligibility based on completion of the FAFSA and subject to annual Cost of Attendance budget limitations
- Graduate-level limit of $20,500 per academic year
- Payments deferred while enrolled at least half-time (5 credits/semester)
- No prepayment penalties
- 6-month repayment grace periodupon leaving school or dropping below half-time
How do I apply?
Complete all applicable application steps listed under the Federal Direct Unsubsidized Loans section of the Federal Loan Application page.
Federal Direct PLUS Loans
The Federal PLUS Loan program (Title IV) is a good secondary option for students who have exhausted Direct Unsubsidized Loan eligibility and need additional funding. PLUS loans fall under the unsubsidized loan category, as they accrue interest upon disbursement for the life of the loan.
Details:
- 7.9% fixed interest rate
- 4.2% origination fee
- Eligibility subject to credit check and to annual Cost of Attendance budget limitations
- Payments deferred while enrolled at least half-time (5 credits/semester)
- 6-month repayment grace period upon leaving school or dropping below half-time*
How much am I eligible to take out?
*NOTE: Some PLUS loans may not have a grace period benefit, in which case repayment will occur 30 days after graduation or a drop below half-time status. Please contact your lender(s) directly for details. Your lender(s) and their contact information can be found on the National Student Loan Data System (NSLDS).
How do I apply?
Complete all applicable application steps listed under the Federal Direct PLUS Loans section of the Federal Loan Application page.
- NOTE: Since loan approval is based on a credit check students can also apply with an endorser (AKA "co-signer"), as that may increase the probability of approval. Simply have your endorser complete the "Endorse PLUS Loan" process on the studentloans.gov site. The applicant will need to give the endorser some basic information about the loan (i.e. the loan application number).
Alternative/Private Loans
Alternative loans (also known as private education loans) are typically offered by all major lenders. The terms and conditions of these loans may be less favorable than those of federal Title IV loans. Specifically, interest rates are generally higher and variable (as opposed to fixed).
Note: With a few exceptions,most alternative loans must be certified by the Financial Aid Office. Some students may not be eligible for alternative loans, as the total amount of financial aid must remain within the institution's estimated Cost of Attendance (COA).
How do I apply?
Visit the lender's website and/or contact the lender directly. Some examples of alternative loans include (listed in alphabetical order):
International Student Loans
While International students are not eligible to complete a FAFSA (and therefore not eligible for Title IV loans) there may be alternative loan options available. Many major lenders will lend to International students as long as the student has a U.S. citizen as a co-signer.
The following websites might be useful in discovering loan opportunities:
Estimated expenses and budget worksheets can be found on Step 2 of our International Master's Level Students page.
Definitions & Terms
Cost of Attendance (COA)
Every financial aid applicant is assigned an annual Cost of Attendance (COA), which will be published on the Award Letter. The COA represents the maximum amount of financial aid a student can utilize for an academic year.
A student's COA is calculated by the Financial Aid Office using figures from tuition/fees, estimated books/supplies, and estimated living expenses (as published by the state of Colorado). This amount generally cannot be changed unless the student qualifies for an adjustment. If the adjustment is approved, it will allow the student to utilize additional Financial Aid for that academic year up to the adjusted amount. The student must reapply for the adjustment each academic year, after the FAFSA is complete.
Origination Fees
The Department of Education charges an origination fee of 1.05% for Unsubsidized loans and 4.2% for PLUS loans. Origination fees are withdrawn before the loan funds are sent to the school, which means that net loan amounts are typically 98.95% of gross Unsubsidized loan amounts and 95.8% of gross PLUS loan amounts.
In-School Deferment
Students who are taking at least 5 credits per semester/term (half-time status) are eligible for In-School Deferment. During In-School Deferment the student does not need to make any student loan payments. Previously disbursed Subsidized loans do not accrue interest during this period. Once a student drops below 5 credits the 6-month repayment grace period will begin.
Denver Seminary partners with the National Student Clearinghouse (NSLC) to automatically enter eligible students into deferment status. Enrollment status reports are submitted to the NSLC every two weeks, which is then communicated to the Department of Education.
If you believe the Dept of Ed is not receiving the appropriate communication from the NSLC, an In-School Deferment Request Form can be completed (sections 1-3) and submitted to the Financial Aid Office. The Financial Aid Office will complete section 4 and send it to the Dept of Ed.
For other types of deferment or forbearance, please vist the Repayment Options section on our Loan Management page.
Graduate-Level Aggregate Loan Limits
The following chart lists the most a graduate-level student can accrue in federal Unsubsidized student loan funds:
|
Time Frame |
Totals |
|
Each Year |
$20,500 |
|
Aggregate |
$138,500 |
PLUS loans do not have aggregate limits, meaning that once a student has reached aggregate limits PLUS loans can still be utilized (assuming the student is eligible).
* Assuming the student is eligible, which is determined by the FAFSA. If student is not eligible, amounts will be unsubsidized by default.
Return of Federal Funds Policy
Our Return of Federal Funds Policy is published here.
Debt and Repayment Tools
The tools linked below can also be found on our Loan Management page:
- View our Loan Repayment Table to estimate standard monthly repayment amounts.
- View our Debt-to-Income Ratio Chart for estimated manageable debt levels.
- If you are concerned about having trouble repaying your loans, view some strategies and options at FinAid!'s Repayment Solutions page.
What about consolidation? Deferment? Forbearance?
