Loans
Federal Direct Subsidized Loan
- Based upon need
- No interest while a student is registered for at least six credit hours
- Repayment on the principal begins six months after completing program of study or dropping below six credit hours
- Student must be accepted to a UC degree-seeking program
- Student must complete the FAFSA (Free Application for Federal Student Aid)
- Student must complete Entrance Counseling
- Student must complete a Master Promissory Note
Federal Direct Unsubsidized Loan
- Non-need based loan
- Interest begins as soon as the loan is disbursed
- The student may choose to make payments on the interest while they are in school or choose to have the interest capitalized
- Repayment on the principal begins six months after completing program of study or dropping below six credit hours
- Student must be accepted to a UC degree-seeking program
- Student must complete Entrance Counseling
- Student must complete a Master Promissory Note
Federal Direct PLUS or Graduate PLUS Loan Program
- Repayment on the principal and interest begins as soon as the loan is disbursed. Parents and Graduate students may also have their loans deferred
- The parent and graduate student must pass a credit check to qualify for a PLUS Loan
- Maximum amount that may be borrowed is the student’s cost of attendance less other estimated financial aid
- Parent must complete the Plus Loan Application
- Parent must complete the Master Promissory Note
- Parents may borrow up to the cost of education, minus any Financial Aid
- Repayment begins 60 days after the loan is fully disbursed, but parent has the ability to defer payments while the student is in school
Federal Graduate PLUS Loan Program
- Student must be enrolled at least half-time (minimum of 6 credit hours)
- Student must have a completed FAFSA on file for the current academic year
- Student must be enrolled at least half-time in a graduate program
- Student borrower must be a U.S citizen or eligible non-citizen
- Student borrower must pass a required credit check
- Student borrower must complete the Graduate PLUS Loan Application or electronic application
- Student borrower must complete the Graduate PLUS Loan Master Promissory Note
Annual and Aggregate Loan Limits
The following chart provides maximum annual and aggregate (total) loan limits for subsidized and unsubsidized Direct Stafford Loans.
| Year | Dependent Undergraduate Student | Independent Undergraduate Student (and dependent students whose parents are unable to obtain the parent plus) |
|---|---|---|
| First Year | $5,500—No more than $3,500 of this amount may be in subsidized loans. | $9,500—No more than $3,500 of this amount may be in subsidized loans. |
| Second Year | $6,500—No more than $4,500 of this amount may be in subsidized loans. | $10,500—No more than $4,500 of this amount may be in subsidized loans. |
| Third Year | $7,500—No more than $5,500 of this amount may be in subsidized loans. | $12,500—No more than $5,500 of this amount may be in subsidized loans. |
| Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits) | $31,000 - Total $23,000 – Is the maximum amount allowable in subsidized loans. | $57,500—No more than $23,000 of this amount may be in subsidized loans. |
Visit https://studentaid.gov/ to learn more about the Federal Direct Loan Programs.
The following steps must be completed to receive your Direct Loans
Federal Direct Loan
- Complete the Loan Entrance Counseling interview
- Complete the Master Promissory Note (MPN) for Federal Direct Loan
- https://studentaid.gov/
Federal Direct PLUS Loan Program for Parents and Graduate Students
- Parents and graduate students complete the PLUS loan credit application at https://studentaid.gov/
- Graduate students and Parents (with adverse credit) will need to complete the loan entrance counseling for the PLUS loan
- Parents and graduate students with approved credit application will need to complete the Master Promissory Note (MPN)
Private Alternative Loan
Private alternative educational loans are available from private lenders for students whose cost of attendance has not been met with other financial aid, including the Federal student loan programs. These loans are in the student’s name and most require the student to have a credit worthy co-borrower. There is a credit scoring process that is completed on the borrower and/or co-borrower.
Alternative loans have a variety of different interest rates, loan fees, grace periods, and repayment terms it is important to research the available loans and choose the one that best fits the borrower’s needs.
To assist you in this process, UC has compiled a comparison list for different alternative loans that we think may best match our student body. You are free to choose ANY lender whether it is on the list or not – without penalty. University of Charleston does not endorse any particular lender.
Listed below are the websites of the lending institutions where you can apply for an alternative loan: