Types of Financial Aid for Graduate Students: Loans
Loans are borrowed funds that are charged interest and must be repaid. There are two categories of loans: federal (supported by the federal government), and private (issued by a bank or credit union). For Loan eligibility, 3 Graduate hours of enrollment is required.
To receive assistance from any of these loan programs the student must complete the free application for Federal Student Aid (FAFSA).
- Federal Direct Unsubsidized Loan
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An unsubsidized loan is not awarded on the basis of need. Interest is charged from the time the loan is disbursed until it is paid in full. Interest that accrues (accumulates) while the student is in school or during other periods of nonpayment will be capitalized - that is, the interest will be added to the principal amount of the loan and additional interest will be based on that higher amount.
How do I get a Direct loan?
A regular student enrolled in an eligible program at least half-time may receive a Direct loan. Complete the FAFSA as you would for other federal student aid.
Once a Direct loan has been awarded the student should complete an online Master Promissory Note (MPN) and Entrance Counseling. The MPN is a binding legal document. By signing it you are agreeing to repay your loan under the terms specified. Both the MPN and Entrance Counseling should can be completed at studentaid.gov.
How much can I borrow?
Graduate student can borrow Federal Direct Unsubsidized $20,500 annually. Up to an aggregate(total) limit of $138,500 of all Undergraduate Direct Subsidized and Unsubsidized amount in a lifetime.
- Private Loans
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Private loans are obtained through a bank, credit union, or other independent lender. You will need to work directly with the lender of your choice to apply for a private loan.
ETBU has partnered with ELM Select to give you the best options when deciding which student loan best fits your needs. Go to Elm Resources to compare loan availability and apply.
Loan Disbursement
Loan funds are generally disbursed to student accounts in equal amounts twice per loan period. Most commonly the loan period consists of Fall and Spring semesters, therefore, one disbursement is made in the Fall and one in the Spring.
Graduate Loans are divided into three terms (Fall, Spring, Summer) because most graduate students attend twelve months.
Once the tuition refund period has passed, loans will be disbursed and the Business Office will issue any refunds due at that time to the student's designated bank account.