Types of US Loans

Types of US Federal Loans

You can access comprehensive information regarding federal loans, including interest charges, fees, and repayment rules, on the US Government website.

Please note that foreign schools, including ours, are not eligible to certify Pell Loans or Grants.

The US Department of Education charges an Origination Fee on all loans. Direct Subsidised and Unsubsidised Loans are subject to a 1.057% fee, while Plus Loans incur a fee of 4.228%. This fee is deducted at the source before we receive your disbursement funds. Should this fee increase, we will promptly notify you.

A male student on his laptop in the James McCune Smith building

Direct Subsidised Loans

This grant is awarded to students based on financial need. The information you provide on your FAFSA is used to calculate your EFC (Expected Family Contribution). Your EFC and the amount of your EFA (Estimated Financial Assistance), i.e., any scholarships, bursaries, or awards you will receive, will be deducted from your Cost of Attendance to determine your Financial Need. Please note that Graduate/Professional students are no longer eligible for Direct Subsidised Loans.

Additionally, the US government will cover the interest on a subsidised loan while you are enrolled at least half-time or during a grace or deferment period.

A student on campus at Gilmorehill

Direct Unsubsidised Loans

This grant is not based on financial need. While studying at least half-time, or during deferment or grace periods, you have the option of paying the interest or having it capitalised and added to the total value of the loan, thereby increasing the amount you need to repay.

Students studying outside

Federal Direct Parent PLUS Loan

Parents of dependent undergraduate students can borrow a Federal Direct Parent PLUS Loan and can borrow up to the total Cost of Attendance minus all other sources of financial aid their student receives. The loan is the financial responsibility of the parents and not the student.

The parent borrower must meet the same citizenship and residency requirements as the student. The parent must not owe a refund on a federal student financial aid grant or be in default on a federal student loan. Repayment begins within 60 days after the loan is fully disbursed and lasts for ten years.

A student writing on the board during a maths and stats class

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan is a federal loan available to graduate students with good credit histories, aimed at assisting with educational expenses. A graduate student may borrow up to the total Cost of Attendance less all other financial aid received.

Students must have exhausted their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Direct Loan Program before applying for a Graduate/Professional PLUS loan.

Repayment commences on the date of the last disbursement of the loan, with the first payment due within 60 days after the loan is fully disbursed. Graduate PLUS borrowers may be eligible for a deferment while enrolled on at least a half-time basis at an eligible school.