Loans are available to provide assistance to students in meeting educational expenses. There are several types of loans that students and/or a parent borrower or sponsor may apply for to help pay for educational expenses. Each loan program may have a different lifetime maximum borrowing amount. Interest rates for Federal loans are reset each July 1st and are fixed for the life of the loan which vary per federal loan type. Private loan terms and rates are subject to the lender. It takes most students at least 10 years to repay a loan after graduation, be sure to invest the time now in deciding which loan is best for you.
Federal Student Loans
Students who are enrolled at least half-time and meet SAP guidelines should be offered a Federal Direct Subsidized and/or Federal Direct Unsubsidized Loan. The subsidized portion of the loan is interest free while the student is enrolled at least half-time. Interest will accrue on the Unsubsidized portion of loan eligibility.
- $5,500 a year during the first year
- $6,500 a year during the second year
- $7,500 a year for students with junior or senior status
More information on these loan programs is available at Federal Student Aid.
Federal Parent Loan for Undergraduate Students (PLUS) – Dependent Students Only
A parent or step-parent of a dependent student may apply for a Federal Parent PLUS loan to assist them in paying for their education. The parent loan has a higher interest rate than the student loan options. Families use this loan program when student loan programs are not enough to fund their education. The student must meet SAP guidelines and be enrolled at least half-time during the semester when the parent borrows this loan. First time borrowers will have to complete loan documentation.
Approval is not guaranteed. If a parent is denied the loan based on their credit check, then the college will be able to offer the student an increase to their Federal Unsubsidized Loan eligibility for the year. More information on the Parent PLUS loan program is available at Federal Student Aid.
Federal Loans for Graduate & Doctorate Students Only
There are two types of federal loans available for graduate and doctorate students, the Federal Direct Unsubsidized Loan and the Federal Graduate PLUS loan. Both loans have interest that accrues on the loan even while you are enrolled. Depending on your eligibility and cost of attendance, a graduate or doctoral student may borrow up to $20,500 a year in the Federal Direct Unsubsidized Loan.
If the student has additional need, then they may apply for a Graduate PLUS Loan for up to the full cost of attendance. The PLUS loan approval is not guaranteed and is instead based on a credit check. If denied a borrower may add a creditworthy co-signer. The student must meet SAP guidelines and be enrolled at least half-time during the semester when borrowing either of these loans. First time borrowers will have to complete loan documentation. More information on these loan programs is available at Federal Student Aid.
Private Student Loans
When funding through federal resources is not enough, families may choose to look at borrowing from a private loan program. These loans are from private lenders and are based on credit with terms similar to federal loan programs. The borrower could be the student or a sponsor. Often student borrowers will need a co-signer due to lack of credit and income history.
We have a list of known lenders available on ELM Select at ELMSelect - Fayetteville State University . Feel free to browse the lenders listed. The site is very interactive and up-to-date with details on the various lenders. You are not required to use any of the lenders listed. You may first want to check with your own bank for options as they often give current customers a discount.
We hope you will carefully review the information and choose a lender that best suits your needs. If you choose a lender not listed in the guide, be sure to ask questions and use the criteria listed to help you evaluate that loan program.