LOANS
Notice to student and parent borrowers: The College must disclose loan information to the National Student Loan Data System (NSLDS), and this information will be accessible by authorized agencies, lenders, and institutions per HEOA 489 amended HEA Sec. 485B.
Federal Direct Loan
A Federal Direct Loan allows eligible students to borrow directly from the U.S. Department of Education at participating colleges or universities, and is a low-interest loan to help students with educational expenses. There are two types of Federal Direct Loans, subsidized and unsubsidized. A Direct Subsidized Loan is an undergraduate federal student loan based on financial need and offers students a reduced, fixed interest rate and flexible repayment terms. Interest is subsidized, meaning it does not accrue to the borrower, while in an in-school (must be in 6 or more credit hours), grace (6-month period after the student stops attending at least 6 credit hours), or deferment period. A Direct Unsubsidized loan offers students a fixed interest rate and flexible repayment terms. It is not based on financial need. Interest begins to accrue when the loan is disbursed and can be paid while the student is enrolled or when loan repayment begins. Annual and aggregate limits apply to both subsidized and unsubsidized loans.
All Federal Direct Loan funds must be repaid according to the terms specified in the promissory note. Loan repayment begins six months after the student graduates or ceases to be enrolled at least half time. All borrowers are expected to take part in loan counseling. All new students will be required to wait 30 days from their starting date before being eligible to receive any loan proceeds. Students must first apply for the FAFSA at studentaid.gov/fafsa. Students must be enrolled and attending at least 6 credit hours in order to be eligible for a federal loan.
Federal Parent Loan for Undergraduate Students (PLUS) Loan
A Federal Parent Loan for Undergraduate Students (PLUS) is a low-interest loan to help parents, step-parents, or adoptive parents pay for their dependent undergraduate student’s educational expenses. Students must complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov/fafsa before a PLUS loan can be certified. Students must file the FAFSA as a dependent student, although the parent applying does not have to be listed on the FAFSA. Parents must pass a credit check for adverse credit history to be eligible for for a PLUS loan. The parent is the borrower for the PLUS loan program. Generally, repayment begins within 60 days after the final loan disbursement is made to the borrower. If parents to not pass the credit check, the student can qualify for additional unsubsidized loan funds. UACCM requires a separate loan application for a PLUS loan. Please see the Financial Aid Office for more information.
Private/Educational Loans
A student or parent loan from a bank, financial institution, credit union, private company, nonprofit or state-affiliated lender to pay for educational costs. Interest begins to accrue when the loan is disbursed, and repayment usually begins while the student is still enrolled in school. These loans must be paid back with interest according to the promissory note signed by the student/parent and the lender. UACCM does not have a preferred lender list for private/educational loans. The student and/or parent are responsible for seeking out this type of funding.
Borrowing Specifics
Repaying Loans
Borrowers are required to repay federal student loans with interest. Repayment of Federal Direct Subsidized and Unsubsidized Loans will begin six months after you stop attending school at least half-time (6 credit hours); this is known as your grace period. The standard repayment time frame is 10 years for each Federal Direct Student Loan, and you can choose from several repayment plans to fit your financial situation. Your loan will be collected by a third-party servicer on behalf of the federal government; this servicer will be the one to contact you regarding payment arrangements. Talk to your servicer if you can’t or have issues making your loan payments. Loan deferment and forbearance can help you temporarily delay repayment. You can always view your borrowing information on studentaid.gov under your FSA login and account information.
Annual and Aggregate Direct Loan Limits
| Dependent Students* | Independent Students** |
|---|---|
First-Year Undergraduate Annual Loan Limit | |
| $5,500 - No more than $3,500 of this amount may be subsidized loans. | $9,500 - No more than $3,500 of this amount may be subsidized loans. |
Second-Year Undergraduate Annual Loan Limit | |
| $6,500 - No more than $4,500 of this amount may be subsidized loans. | $10,500 - No more than $4,500 of this amount may be subsidized loans. |
Third-Year and Beyond Undergraduate Annual Loan Limit*** | |
| $7,500 - No more than $5,500 of this amount may be subsidized loans. | $12,500 - No more than $5,500 of this amount may be subsidized loans. |
Graduate or Professional Student Annual Loan Limit | |
| Not Applicable. (all graduate and professional degree students are considered independent.) | $20,500 (unsubsidized only) |
Subsidized and Unsubsidized Aggregate Loan Limit | |
| $31,000 - No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates - No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students - No more than $65,000 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study. |
*Except students whose parents are unable to obtain PLUS Loans
**Includes dependent undergraduate students whose parents are unable to obtain PLUS Loans
***Loan amounts only available at schools with programs of 3+ years
Learn more about direct subsidized and direct unsubsidized loans.