Loans

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Direct Loan Basics for Students (PDF)
Subsidized
- Federal Government pays interest while in school – must maintain at least half-time status
- 3.4% fixed interest rate for undergraduate students, 6.8% fixed interest rate for graduate students for 2011-2012
Unsubsidized
- 6.8% fixed interest rate for undergraduate and graduate students for 2011-12
- Government does not pay the interest payments
- The student may choose to make interest payments while in college or allow them to accrue
An Entrance Counseling is required for first time Stafford loan borrowers
An Exit Counseling is required for all Stafford loan borrowers who either graduate, withdraw or are registered below half-time
Repayment of loan principal plus interest begins six months after leaving school

Please view a table for the Annual Stafford Loan Limits for Undergraduate and Graduate Students.

Based on financial need
5% interest
9 month grace period
No interest while in school – must be registered at least half-time
An Entrance Interview is required for first time Perkins loan borrowers at Aurora University
An Exit Interview is required for all Perkins loan borrowers who either graduate, withdraw or are registered below half-time

7.9% fixed interest rate for 2011-12
Loans are available to parents who have a dependent child enrolled in college.
These loans are guaranteed by the federal government and also need lender approval based on a credit check.
Individual eligibility is determined by subtracting any financial aid available for the academic year from the cost of education.
Financial need is not a prerequisite.

Helps pay educational expenses not covered by your financial aid package
Recommended: Apply for federal, state and institutional aid before considering the alternative loan source
Credit check and/or a co-signer may be required
Can cover expenses from a previous academic period (within 12 months)
Be aware of the lender’s fees, interest rates, and repayment options

Full-time undergraduate students are eligible
Loans are given for one term at a time (based on registration)
Maximum annual award of $1500
Entrance interview required for first time borrowers
Master Promissory Note needs to be signed for each semester the loan has been awarded
Exit interview required upon graduation, withdrawal, or below half-time registration

Effective for loans first disbursed on or after July 1, 2008

Dependent undergraduate (Excludes students whose parents cannot borrow PLUS)	Sub/Unsub	Additional Unsubsidized Loan Amount
First-year	$3,500	$2,000
Second-year	$4,500	$2,000
Third-year and beyond	$5,500	$2,000
Independent Undergraduate Students (Includes Dependent Students whose parents can not borrow PLUS)	Sub/Unsub	Additional Unsubsidized Loan Amount
First-year	$3,500	$6,000
Second-year	$4,500	$6,000
Third-year and beyond	$5,500	$7,000
Graduate Students	$8,500	$12,000

Annual Loan Limits for Preparatory Coursework and Teacher Certification

Dependent Students (excluding students whose parents cannot borrow PLUS)	Sub/Unsub	Additional Unsubsidized
Preparatory coursework (for enrollment in an undergraduate program)	$2,625	0
Preparatory coursework (for enrollment in an graduate or professional program)	$5,500	0
Teacher certification coursework	$5,500	0
Independent Students (and dependent students whose parents cannot borrow PLUS)	Sub/Unsub	Sub/Unsub
Preparatory coursework (for enrollment in an undergraduate program)	$2,625	$6,000
Preparatory coursework (for enrollment in an graduate or professional program)	$5,500	$7,000
Teacher certification coursework	$5,500	$7,000

Aggregate Loan Limits

	Subsidized / Unsubsidized Aggregate
Dependent Students (excluding students whose parents cannot borrow PLUS)	$31,000 (maximum $23,000 subsidized)
Independent Students (and dependent students whose parents cannot borrow PLUS)	$57,500 (maximum $23,000 subsidized)
Graduate and Professional Students	$138,500 (maximum $65,500 subsidized)