Loans
What you need to know about Loans
Loans are a form of financial aid that MUST be repaid. FAU encourages students to only borrow what is needed to cover their cost of attendance for the academic year.
Use the MyFloridaFuture as a resource to determine earnings over time, typical loan amounts, and loans over time. MyFloridaFuture Tool - State University System of Florida . The College Scorecard Home | College Scorecard provides additional information regarding cost, graduation rates, and median earnings.
Students who enroll less than full time for the academic year will have reduced annual loan eligibility. For undergraduate students, full time for the academic year is defined as 24 credits. For graduate students, full time for the academic year is defined as 18 credits.
This means that if you enroll less than full time, the Financial Aid Office will determine the maximum amount of loans that you can borrow for the year based on your actual enrollment and may be required to reduce your loan. Withdrawing from courses may also result in reduced loan eligibility for the year.
This rule applies to Direct Subsidized Loans, Direct Unsubsidized Loans, and Graduate PLUS Loans. It is still required that students must be enrolled in a minimum of half time to receive a loan.
Information regarding a student’s Federal Direct loans will be submitted to the National Student Loan Data System (NSLDS) database. By logging into StudentAid.gov and viewing their individual dashboard, students are able to access their loan history by guaranty agencies, lenders, and schools (determined to be authorized users of this system). Students should monitor this information to ensure accuracy of data as well as progression toward their relevant lifetime aggregate limit.
Loan process steps must be completed at least two weeks prior to disbursement to ensure that you receive your funds in a timely manner, with the exception of the Short Term Advance.
Federal Direct Loans
These loans are available to undergraduate and graduate students who enroll at least half-time. Subsidized Federal Direct Loans are offered to undergraduate students demonstrating financial need. Students are not responsible for interest accrued on Subsidized Direct Loans while in school. Unsubsidized Federal Direct Loans are offered to students who do not qualify for the Subsidized Direct Loan or do qualify and are still in need of additional funding. Students are responsible for interest accrued on Unsubsidized Direct Loans while in school. Annual Direct Loan borrowing limits for dependent undergraduate students are $5,500 for freshmen, $6,500 for sophomores, and $7,500 for juniors and seniors. Independent undergraduate students may borrow additional Direct Unsubsidized Loans beyond the above stated limits (additional amount depends on academic standing). Graduate students may borrow up to $20,500 per year in Unsubsidized Direct Loans. Repayment of principal and accrued interest begins six months after the student graduates, withdraws, or drops below half time enrollment. There is no penalty for accepting a partial loan amount.
- Federal Loan Fees & Interest Rates
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Entrance Counseling
- Required for first-time federal loan borrowers and may also be required for some students who have received prior federal loans in the past.
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Exit Counseling
- Students who have received Federal Direct Loans must complete Exit Counseling prior to leaving the University
- Information on income-driven repayment of Federal Direct Loans
- Master Promissory Note
- Studentaid.gov (To view financial aid history)
Total and Permanent Disability Discharge
Total and Permanent Disability Discharge
Those who qualify for a TPD discharge would not have to repay included William D. Ford Federal Direct Loan (Direct Loan) Program loans, Federal Family Education Loan (FFEL) Program loans, and Federal Perkins Loans, and for those students who received a TEACH Grant, a TPD discharge would also relieve you of your TEACH Grant service obligation.
Some borrowers may automatically qualify for TPD, but others may need to submit an application. Borrowers seeking a disability discharge should visit the TPD web site for more information.
Federal Direct PLUS Loans
Federal Direct PLUS Loans Website
The Federal Direct PLUS Loan is a low interest loan available to assist the parents of dependent students admitted and enrolled in an undergraduate degree program or graduate students admitted and enrolled in a graduate degree program. To be eligible for the Direct PLUS Loan, the parent borrower or the graduate student borrower should have no adverse credit history.
IMPORTANT CHANGES
Current
Parent
PLUS Borrowers
If you (the borrower/parent) meet the relevant “grandfather”/legacy provisions, you may be allowed to continue borrowing under the current guidelines for another 3 years or for the remainder of your currently enrolled undergraduate dependent student’s academic program (which is calculated by subtracting the number of years they've attended from the full-time length of the program), whichever is less.
Applicable limits for current parent PLUS borrowers are as follows:
Annual limit: up to cost-of-attendance (minus other aid received)
Lifetime/aggregate limit: none
New (After July 1, 2026) Parent PLUS Borrowers
If you (the borrower/parent) will have your first parent PLUS loan for a newly admitted and enrolled undergraduate dependent student disbursed after July 1, 2026, you do not qualify for any of the relevant “grandfather”/legacy provisions, and would instead be bound by the newly implemented limits (see below).
*Please note that, even if when you apply with the federal government and request the “maximum amount” option, and are subsequently seemingly “approved” for same, the limits below will still apply.
Applicable limits for new (after July 1, 2026) parent PLUS borrowers are as follows:
Annual limit: $20,000 per dependent student
Lifetime/aggregate limit: $65,000 per dependent student
Current Grad PLUS Borrowers
If you meet the relevant “grandfather”/legacy provisions, you may be allowed to continue borrowing under the current guidelines for another 3 years or for the remainder of your current Graduate academic program (which is calculated by subtracting the number of years you've attended from the full-time length of the program), whichever is less.
Applicable limits for current Grad PLUS borrowers are as follows:
Annual limit: up to cost-of-attendance (minus other aid received)
Lifetime/aggregate limit: none
If you do not qualify for any of the relevant “grandfather”/legacy provisions, even though the federal government may still allow you to apply and may even respond with a status of “approved”, you will not be eligible to receive a Grad PLUS loan. To look into other options, you can review the information at the links below:
Graduate assistantship programs
Repayment of principal and interest begins within 60 days after the loan is fully disbursed. The borrowers may be eligible to defer repayment until student graduates or ceases to be enrolled at least half-time. In order to receive a Direct PLUS Loan, students must first file a Free Application for Federal Student Aid (FAFSA).
Private Loans
Private student loans (also known as alternative loans) are non-federal loans, made by a lender such as a bank, credit union or state agency. Federal student loans include many benefits (such as fixed rates, income-based repayment plans, and loan forgiveness plans) not typically offered by private loans. In many cases, private loans may be more expensive than Federal student loans. A student should NEVER consider borrowing from a private loan program until they have exhausted all their Federal Direct Loan options first.
Dependent Undergraduate students applying for private loan financing with a parental cosigner are advised to first investigate the options offered by the Federal PLUS program before applying. A detailed comparison between the Direct PLUS and Private loan programs can be viewed in our Direct Loan Comparison Worksheet.
Selecting a Private Loan Program
Below are some factors to be considered when comparing private loan products
- Have an idea of what rate you will qualify for BEFORE you apply.
- Compare rates from different lenders
- Focus on the APR.
- Find out about any fees the lender may charge to originate the loan.
- Ask about interest capitalization
- Ask about borrower benefits
Students may view and compare some of the private loan programs through which Florida Atlantic University students have successfully obtained funding in the past via the ELMSELECT private loan search and comparison tool. When using ELMSELECT, students are recommended to use the "Sort and Filter" options on the left sidebar to identify the loan programs with the terms and qualifying criteria that meet their needs. Neither Florida Atlantic University nor the FAU Office of Student Financial Aid promote, endorse or recommend any of these loan products or lenders by including them on the list. Though the FAU Office of Student Financial Aid is able to process private loans with all private loan providers, processing is most efficient with ELM participating lenders. If your preferred lender does not appear on the list provided, you are advised to contact them to confirm they are an ELM participant.
View the private loan programs at ELMSELECT.
Private Education Loan Applicant Self Certification Form and FAU Cost of Attendance
Due the enactment of new regulations (Title X - Private Student Loan Transparency and Improvement Act of 2008), a student applying for a private educational loan is required to complete the Private Loan Self Certification Form This form must be submitted directly to the lender. To complete this form, information regarding FAU cost of attendance must be provided.
Short Term Advance
A University monetary advance available to degree-seeking students enrolled at least half-time at FAU for assistance with purchasing textbooks, emergency funds relating to educational expenses and unanticipated living expenses until the disbursement of financial aid. Keep in mind that the Short Term Advance is NOT a source to assist with paying your tuition and other related fees.
Maximum loan amount is $750 with a non-refundable processing fee of $5.00 assessed. Students must meet additional eligibility criteria.