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Loans

A student’s eligibility for a subsidized loan is based on financial need, as determined by the FAFSA. Additional financial sources may include External Scholarships, Payment Plans, Direct Plus Parent Loans, or private loans (visit ELM Select for more details).

Federal Direct Student Loans
Eligibility for a Subsidized loan is based on financial need, as determined by the FAFSA, and the interest that accrues during periods of enrollment for a subsidized loan is paid by the federal government. If a student does not qualify for a need-based Subsidized loan, he/she automatically qualifies for the same loan limit through the Unsubsidized loan; the interest that accrues during periods of enrollment for an Unsubsidized loan is added to the principle. The loan limits are $3,500 per year for freshmen, $4,500 per year for sophomores, and $5,500 per year for juniors and seniors. All students can opt to borrow up to $2,000 as an Unsubsidized loan in addition to the initial need-assessed award. The total amount that undergraduates may borrow is $31,000. Beginning July 1, the rate for both the Subsidized and Unsubsidized loans is a fixed 4.29%. Please note that there is a 1.07% origination fee that the government withholds upon loan disbursement.

Parent Loans
There are several high quality parent loan products from which to choose, including the federal Direct PLUS Loan for parents, and the University does not endorse any individual lender. Private student loans, discussed below, using a cosigner with good to excellent credit can result in fixed and variable rates lower than the federal Direct PLUS Loan. Families are encouraged to compare attributes of any loans to pick the one that is right for them.

Visit ELM Select for more details regarding private loans. Many loan sites provide repayment calculators with various options from which to choose. These can be very helpful when deciding what type of loan and repayment is best for your family.

Plan ahead; apply early for any parent or student loans to give yourself time to resolve any issues.

Payment Plans 
Families should consider what they can afford to pay out of pocket prior to borrowing the remaining educational costs. This helps minimize the debt burden on students and parents. The University offers two payment plans.