Before borrowing, exhaust your options for scholarships, grants and work study first. If loans are a last resort, make sure not to borrow more than you need. Use our billing calculators (1st year billing calculator; Current Student billing calculator) when determining how much you need to borrow.
Federal Loans
IMPORTANT: Update to Federal Loan Rules
The One Big Beautiful Bill Act (OBBA) establishes new borrowing limits for the Parent PLUS Loan. Beginning July 1, 2026 borrowing through this program is limited to $20,000 per year per student. Additionally, it establishes a lifetime borrowing limit of $65,000 per student. For more details, see the Borrowing Limits section under Federal Direct Parent PLUS Loans.
The One Big Beautiful Bill Act (OBBA) also established new rules for Federal Direct Student Loans. Students are now required to be enrolled full time in order to receive the full amount of their offered loans. For more details, see the Loan Proration section under Federal Direct Student Loans.
Federal Direct Student Loans
Federal Direct Loans are available to students by filing the Free Application for Federal Student Aid (FAFSA). Students must be enrolled at least half time (1.2 units or more each term) in order to be eligible for any loan funds.
Once a Federal Direct Loan is disbursed, a loan servicer is assigned who handles billing and other services. While payment on these loans is not required until after a student graduates, drops below half-time enrollment status, or withdraws from the college for more than six months, it is helpful to know who your loan servicer is. You can find out who your loan servicer is by logging into your account on the Federal Student Aid website.
Loan Types
Subsidized
Subsidized loans are available to students who demonstrate financial need as determined by the FAFSA. The federal government pays the interest on a subsidized loan while a student is in school at least half time. Once the student enters repayment (see below) interest will begin to accrue. Subsidized loans do not accrue interest while the student is in school or while the student is in their grace period.
Unsubsidized
Unsubsidized loans are available to any student who files a FAFSA and is enrolled at least half time. Interest does accrue on unsubsidized loans while a student is in school. While paying the interest while in school is not required, students may choose to do so to prevent the interest from capitalizing.
Borrowing Limits
Annual Limits
| Maximum Subsidized + Unsubsidized | Maximum Subsidized | |
| Dependent Freshman | $5,500 | $3,500 |
| Dependent Sophomore | $6,500 | $4,500 |
| Dependent Junior/Senior | $7,500 | $5,500 |
| Independent Freshman | $9,500 | $3,500 |
| Independent Sophomore | $10,500 | $4,500 |
| Independent Junior/Senior | $12,500 | $5,500 |
Aggregate Limits
| Maximum Subsidized + Unsubsidized | Maximum Subsidized | |
| Dependent Undergraduate | $31,000 | $23,000 |
| Independent Undergraduate | $57,500 | $23,000 |
Managing Loans
Adjusting or Declining Your Loans
If you want to adjust your student loans for the 2026-27 academic year, adjustments may be made on the ‘My Awards’ page on Hornet HQ or by completing the Loan Adjust/Decline Form.
Required Paperwork
In order to borrow any amount of loans through the Direct Loan program, the following steps must be completed:
- Direct loan master promissory note – First-time borrowers must sign in (using your FSA ID) to complete an electronic master promissory note.
- Direct loan entrance counseling – First-time borrowers must sign in (using your FSA ID) to complete electronic entrance counseling.
Federal Direct Loan Resources
Loan calculator – This site provides additional information about loan-repayment options and can help you calculate an estimate of what your loan payments may be.
Federal Student Aid website – Sign in here to find out who your loan servicer is, disbursements that have been made, the status of your direct loans, compounded interest amounts, repayment terms, deferment paperwork and more.
Interest and Fees
Interest Rates
Direct Loan interest rates vary annually with a maximum rate of 8.25%. The interest rate for subsidized and unsubsidized is 6.52% for loans borrowed between July 1, 2026 and June 30, 2027.
Loan Fees
Direct Loans disbursed on or after October 1, 2020 are assessed a 1.057% origination fee. This fee is deducted at the time the loan is disbursed to a student’s account.
Loan Proration
Schedule of Reductions (SOR) , implemented through the One Big Beautiful Bill Act (OBBA), requires the Office of Financial Aid to adjust Federal Direct Loan amounts when students are enrolled less than full time. Beginning the 2026-27 academic year, students are required to be full time (2.4 units or more each term) in order to receive the full amount of Federal Direct Loans.
The review and adjustment process for loans will occur at the following times each year:
- When the loan(s) are disbursed
- During the add/drop period
- At the end of the term
The following formula will be used to calculate total loan eligibility for each loan type (subsidized and unsubsidized loan eligibility is calculated separately):
number of units enrolled for the academic year
__________________________________________ x 100 = % of yearly borrowing limit student is eligible for
7.2 (units considered full time for the academic year )
If you will be withdrawing from a class or from the college mid-term, your loans will likely be reduced. We highly recommend meeting with a member of our staff to determine how your loans will be impacted. You may make an appointment through our bookings page.
Repayment
Loan repayment begins when a student separates from the college (by either withdrawing or graduating) or when they are enrolled less than half time. We will contact you to complete Loan Exit Counseling when you enter repayment, which will go over your repayment plan options and other information. Repayment is handled through the loan servicer assigned to your loan. You can find out who your loan servicer is by logging into your account on the Federal Student Aid website.
Repayment Resources
Exit Counseling – Borrowers are required to complete this when separating from the college by withdrawing or graduating or if enrolled less than half time.
Loan Simulator – Use this tool to calculate different loan scenarios including repayment strategies and borrowing simulations.
Repayment Plans – Borrowers through federal loan programs have a variety of repayment options including standard, extended, graduated, income-contingent and income-based repayment plans. Learn more about repayment options and how to manage your student loans.
Federal Direct Parent PLUS Loans
The Federal Direct Parent PLUS Loan is a loan program designed to be used by the parents of dependent students to help pay for their education. Financial need is not required to qualify and loans are issued through the federal Direct Loan Program.
Parents who are borrowing under the Parent PLUS loan program for the first time will be required to complete an electronic Master Promissory Note.
Application
The Parent PLUS Loan requires the student to file a FAFSA and also for the parent to complete a Direct PLUS Loan Application yearly. Applications for the 2026-27 academic year are currently available. Applications for the 2027-28 year will open in late June 2027.
Parents may borrow a Parent PLUS Loan if:
- You are the student’s legal parent (even if your information is not on the FAFSA) or you are a stepparent required to provide information on the FAFSA.
- You are not in default on any federal loans.
- You are a US citizen or eligible non-citizen.
- You do not have an adverse credit history.
Borrowing Limits
The One Big Beautiful Bill Act (OBBA) establishes new borrowing limits for the Parent PLUS Loan. Beginning July 1, 2026 the borrowing limits are as follows:
- Annual Limit: Students can have no more than $20,000 borrowed on their behalf. If multiple parents are borrowing on the student’s behalf, the total cannot exceed $20,000.
- Lifetime Limit: Students can have no more than $65,000 borrowed on their behalf for their undergraduate degree. If multiple parents are borrowing on the student’s behalf, the total cannot exceed $65,000.
The new lifetime limit does not allow for borrowing the full $20,000 per year for four years. Families planning to use the Parent PLUS Loan across multiple years should monitor borrowing carefully. If the lifetime limit is reached, private loans may be an option for additional borrowing.
If a student qualifies as a legacy student under OBBA, the loan borrowing limit has not changed. However, the legacy provision is limited to a maximum of three academic years and will be lost if a student withdraws or takes a leave of absence.
Interest and Fees
Interest Rates
Direct PLUS Loan interest rates vary annually. The interest rate for the PLUS Loan is 9.07% for loans disbursed between July 1, 2026 and June 30, 2027.
Loan Fees
Direct Loans disbursed on or after October 1, 2020 are assessed a 4.228% origination fee. This fee is deducted at the time the loan is disbursed to a student’s account.
Private Loans
When federal loans and other aid do not cover your cost of education, external or private educational loans are available. Our historical lender list, hosted by ELMSelect, is intended to be a starting point as students and parents begin their lender search. If you borrow from a private lender and prefer to self-certify for the loan proceeds, you may download and use the Private Education Loan Applicant Self-Certification form as published by Federal Student Aid.