Federal Direct Loans
Undergraduate students at the University of Findlay are eligible to apply for loans through the William D. Ford Federal Direct Loan Program
. Through this federal program, you can obtain federal funds directly from the U.S. Department of Education.
Federal Loan Programs
Stafford Loan Program
If you file a FAFSA and are enrolled at least half time, you may qualify for a Stafford Loan, which is a long-term, low-interest loan.
As an undergraduate student, you may borrow up to $5,500 in Federal Direct Loans your first year, with the dollar amount increasing as you progress academically. The FAFSA and your cost of education will determine how much you can borrow. Your enrollment level also plays a role in your loan eligibility, but you must be enrolled at least half-time, which requires at least six hours of credit in a term. There is no requirement to demonstrate financial need.
Parent PLUS Loans
Your parents may also have the option of applying for a Parent PLUS loan if you are enrolled at least half-time. The loan is in the parent’s name, but on your behalf, and is credit-based. To learn more about
. View the
current loan interest rates
for federal loans.
Private Loan Options
You may wish to consider one of the alternative loans that are available to undergraduate students in lieu of the Direct Parent PLUS Loan. As the borrower, you must initiate the loan, which must subsequently be certified by the Office of Financial Aid. Generally, you must be credit-worthy, and a cosigner must be credit-worthy as well. While you may be able to borrow without a cosigner, having a cosigner may reduce the fees and/or the interest rate on the loan. A careful review of interest rates and their trends may be of value as you decide whether the Direct Parent PLUS or the alternative loan is the right choice for you. Please visit
to explore some private loan options.
Below is a side-by-side comparison of the components of the Direct PLUS Loan compared to private loans.
Direct PLUS Loans are available to parents or custodial step-parents for dependent undergraduate students attending school at least half-time and to graduate students. PLUS loans are solely the responsibility of the borrower. Direct PLUS Loans are available to parents or custodial step-parents for dependent undergraduate students attending school at least half-time and to graduate students. PLUS loans are solely the responsibility of the borrower.
Private loans are generally available to undergraduate and graduate students enrolled at least half-time. The loan is primarily the responsibility of the student, although a credit-worthy cosigner is usually expected to sign the promissory note as well.
Direct PLUS loans are not dependent on family income or assets, and no collateral or cosigner is required. Borrower must, however, meet certain credit criteria.
Terms vary by lender, most of whom use credit scores or debt-to-income ratios to determine creditworthiness, interest rates, and fees. International students may usually borrow with a creditworthy U.S. citizen cosigner
Fixed at 7%
Variable rate typically adjusted quarterly, based on Prime or LIBOR ** rate, and is not capped.
Up to full cost of education minus any other financial aid received.
Most programs allow borrowing up to cost of education minus any financial aid received.
A 4.27% federal origination fee/insurance premium may be deducted from the loan proceeds prior to disbursement.
Fees vary among lenders and may go up to 9%. Often, fees will be determined in part by measure of creditworthiness.
Repayment Terms and Plan
Repayment typically begins within 60 days after the full disbursement of the loan for the academic year. Repayment term is 10 years, and there are no prepayment penalties. Graduated repayment or extended terms may be available if you qualify.
Repayment plans vary by lender and may begin immediately or be deferred until six months after the student ceases half-time enrollment. Students may select from several repayment plans, and most lenders allow prepayment and early payoff without penalty.
You may qualify for a deferment if legitimate circumstances seriously affect your ability to repay the loan. Loan(s) can be canceled in the event of total disability or death.
Payments may generally defer while a student is enrolled at least half-time. Loan cancellation due to disability or death is generally not available without purchase of an additional option.