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Loans

Education is an investment in your future, and one way many individuals choose to fund that investment is through carefully considered borrowing. When managed correctly, an educational loan can be an invaluable tool in financing your DU education as many educational loans offer more favorable terms than other consumer loans. Of course, since all loans must be repaid, you should explore all of your options and only borrow what you absolutely need.

Federal Loan Options

  • Federal Direct Subsidized/Unsubsidized Loans

    Federal Direct Subsidized/Unsubsidized Loans are the most widely-used loans for undergraduate students. If you submit the Free Application for Federal Student Aid (FAFSA), you'll have at least one of these loans offered as a part of their financial aid package.

    Eligibility: These loans are available to every student in a degree-seeking program who submitted a valid FAFSA. Subsidized loans are offered to students deemed to have financial need, while unsubsidized loans are available for all students.

    Maximum Loan Amount:

      Class Maximum Total Maximum Subsidized
    Dependent Students*: 1st-Year Students $5,500 $3,500
      2nd-Year Students $6,500 $4,500
      3rd- and 4th-Year Students $7,500 $5,500
    Independent Students*: 1st-Year Students $9,500 $3,500
      2nd-Year Students $10,500 $4,500
      3rd- and 4th-Year Students $12,500 $5,500

    *You are considered to be an independent student if you are: at least 24 years old; married; have children; a graduate student; a veteran; a member of the armed forces; an orphan, ward of the court, or homeless. If none of those apply, you are considered to be a dependent student for federal student aid purposes.

    Interest Rate:

    • For loans borrowed during the 2018-19 academic year: 5.05%
    • For loans borrowed during the 2017-18 academic year: 4.45%
    • For loans borrowed during the 2016-17 academic year: 3.76%
    • For loans borrowed during the 2015-16 academic year: 4.29%


    These interest rates are fixed for the life of the loan.

    For subsidized loans, the U.S. Department of Education pays the interest while you're enrolled at least half time (six credits or more). Interest accrues on unsubsidized loans while you are in school and on both types of loans after you leave school. You can pay the interest as it accrues, if you wish. If not paid, interest will be capitalized when repayment begins.

    Origination Fee: A loan origination fee is deducted at disbursement of each installment of the loan. The percentage varies depending on when the loan is first disbursed.

    • For loans first disbursed on or after Oct. 1, 2017 and before Oct. 1, 2018, the fee is 1.066%.
    • For loans first disbursed on or after Oct. 1, 2018 and before Oct. 1, 2019, the fee is 1.062%.


    Requirements to receive loan: You must complete both a Master Promissory Note and Entrance Counseling online at www.StudentLoans.gov and remain enrolled at least half-time (six credits or more).

    Repayment: You're not required to make any payments while in school. Repayment begins six months after you graduate, withdraw or drop below half-time enrollment. Payments are made to your Direct Loan servicer each month. The minimum payment is $50, but that amount will likely be higher depending on the total amount borrowed.

    The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan.

    Learn More

  • Federal Direct Parent PLUS loan

    The Federal Direct Parent Loan for Undergraduate Students (Parent PLUS loan) is a credit-based loan available to parents of dependent undergraduate students. Students will not have this loan offered on their award letter. Parents must apply separately for this loan via StudentLoans.gov and may borrow up to the student's total cost of attendance, minus all other financial aid.

    Eligibility: The Parent PLUS loan is available to credit-worthy parents of dependent undergraduate students who have submitted a FAFSA, regardless of financial need. To be approved, the parent must not have an adverse credit history.

    Conditions that result in an adverse credit history include:

    • One or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent or that have been placed in collection or charged off (written off) during the two years preceding the date of the credit report.
    • Having been subject to any of the following conditions during the five years preceding the date of the credit report:
        • Default determination
        • Discharge of debts in bankruptcy
        • Foreclosure
        • Repossession
        • Tax lien
        • Wage garnishment
        • Write-off of a federal student aid debt


    Students are considered to be independent if they are: at least 24 years old; married; have children; a graduate student; a veteran; a member of the armed forces; an orphan, ward of the court, or homeless. If none of those apply, they are considered to be dependent for federal student aid purposes.

    Options if Denied: If you are denied a Parent PLUS loan because of adverse credit, you may...

    • Reapply with a credit-worthy cosigner.
    • Appeal the denial with the Department of Education if there are extenuating circumstances related to your credit history that you can document.
    • Contact us--your student may be eligible for an additional Federal Direct Unsubsidized loan.


    Maximum Loan Amount: Up to your total cost of attendance, minus all other financial aid.

    Interest Rate: Parent PLUS loans offer interest rates that remain fixed for the life of the loan.

    • For loans borrowed during the 2018-19 academic year: 7.60%
    • For loans borrowed during the 2017-18 academic year: 7.00%
    • For loans borrowed during the 2016-17 academic year: 6.31%
    • For loans borrowed during the 2015-16 academic year: 6.84%


    Interest accrues while the student is in school, during any grace period and during repayment. You can pay the interest as it accrues, if you wish. If not paid, interest will be capitalized when repayment begins.

    Origination Fee: A loan origination fee is deducted at disbursement of each installment of the loan. The percentage varies depending on when the loan is first disbursed.

    • For loans with a first disbursement on or after Oct. 1, 2017 and before Oct. 1, 2018, the fee is 4.264%.
    • For loans with a first disbursement on or after Oct. 1, 2018 and before Oct. 1, 2019, the fee is 4.248%.


    How to Apply: You must sign into StudentLoans.gov using your own FSA ID, request a PLUS loan and complete a Master Promissory Note (MPN).

    A credit check will be conducted once you begin the loan application process. If you were initially denied the Parent PLUS loan but have since qualified by obtaining an endorser or documenting extenuating circumstances, you will also be required to complete PLUS Counseling. This can be completed through StudentLoans.gov as well.

    Once you're approved, the Department of Education will send us confirmation of your loan approval and the details of the requested amount. The loan will be added to your student's financial aid award after processing.

    Repayment: Repayment begins 60 days after the last disbursement of the loan. However, repayment can be deferred while the student is enrolled at least half-time and for an additional six-month grace period after the student graduates. Payments are made to your Direct Loan servicer each month. The minimum payment is $50, but that amount will likely be higher depending on the total amount borrowed.

    The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan.

    Learn More

Estimate your loan payments.

Compare your future monthly payment amounts under different repayment plans.

Repayment Estimator

Private Education Loans

Many financial institutions offer private student loans, sometimes called alternative loans. These programs may offer interest rates and terms that are competitive with those of federal loans. However, federal student loans are legally required to provide a range of repayment options, including income-based repayment plans and loan forgiveness benefits. Private loans are not required to offer any such flexibility. Since Federal Direct loans are available to all students regardless of financial need, they often represent a preferable funding option.

Federal vs. Private Loans

  • Details and Preferred Lenders

    Interest rates, origination fees and repayment information all vary widely from lender to lender. If you pursue a private education loan, you will need to apply directly through the lender of your choice. Apply early as processing may take several weeks. As part of the application process, you will be required to complete the Private Education Loan Applicant Self-Certification Form, available through each lender's website. Information needed to complete this form, such as cost of attendance, can be obtained from either your award letter or via PioneerWeb.

    Eligibility: Private education loans are available to all credit-worthy students. The FAFSA is not a requirement for a private education loan. Eligibility for private loans varies among lenders, but a credit check and/or debt-to-income ratio is usually required. A co-borrower may also be required. This type of loan must be applied for separately.

    Maximum Loan Amount: Up to your total cost of attendance, less all other financial aid.

    Preferred Lenders: We maintain a list of our preferred private loan lenders. You can view this list through FastChoice, which allows you to compare lenders by overall cost, interest rate and repayment benefits.

    Our preferred lenders are chosen because of their...

    • Demonstrated history and ongoing commitment to student lending.
    • Borrower benefits, such as repayment and graduation incentives.
    • Broad student eligibility requirements, which provide options to students who may not be eligible for federal student aid.
    • Zero origination or repayment fees.
    • Competitive variable and fixed interest rate offerings.
    • Options for forbearance and death or permanent disability discharge.
    • Transparency regarding the effects of capitalizing interest.
    • Options for in-school repayment.
    • Willingness to provide co-signer release when the student borrower has demonstrated their ability to repay the loan on their own.
    • Strong commitment to customer service for both borrowers and University of Denver staff.


    We will certify loan requests from all lenders, including those that do not appear on our private loan lender list. Loans will first pay toward your charges. If you have borrowed an amount greater than your bill, the Bursar's Office will generate a refund to you for the difference.

Compare your private loan options

Preferred Lender List
student studying

The Loan Process

If you borrow from the Federal Direct Loan program, information regarding your loans will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guarantee agencies, lenders and institutions determined to be authorized users of the data system. All loan funds are first disbursed to the University of Denver—any excess funds may be sent to you in the form of a refund

Your Bill & Receiving Your Aid

Contact

 

Financial Aid