What if I have exhausted my annual Federal Direct Subsidized/Unsubsidized Loan eligibility and I still have not reached the cost of attendance? How do I secure additional loans?
The students will have a choice to borrow a Federal Direct Graduate PLUS Loan or obtain credit-based private education loan. Both of these loans have a credit review requirement, however the Direct Graduate PLUS Loan has a fixed 7.9% interest rate while private loans have a variable rate. The repayment options for private loans are the same as the federal loans, but the interest rate is assigned based on the borrower’s FICO (Fair Isaac Corporation) score. Oftentimes, students have not acquired enough credit to establish a viable credit history, and the lender may ask for a co-borrower. The loan funds are disbursed through the university and not directly to the student.
