Graduate Student Loan Information 2021–2022                                             

Steps to Apply for a Federal Direct Student Loan

Federal Direct Student Loans made to graduate students are unsubsidized and the loan funds are borrowed from the federal government.  A graduate student must be admitted to an eligible degree program and at least half-time enrolled (5 credits/ term).  Interest is charged on the amount borrowed from the time the loan is disbursed until it is paid in full. The interest may either be paid during enrollment or allowed to accrue and capitalized upon repayment; added to the principal amount of the loan.  A six month grace period is offered after a student borrower ceases enrollment (or drops below half-time.)

The interest rate for 2021-22 is 5.28% with an origination fee of 1.057% charged on each loan. 
Annual maximum: $20,500 per year (for two enrollment periods 
Aggregate maximum for graduate student federal direct loan debt is $138,500. 

  1. Graduate students who are new to EMU or who are returning and have not previously borrowed a Federal Direct Loan (as a graduate student) must complete a Federal Direct Loan Master Promissory Note (MPN) and Entrance Counseling session at https://studentaid.gov 
  2. All student borrowers must complete the EMU loan request form; available online by logging on to your myEMU account, click on financial aid and complete the Graduate 20-21 loan request form.

 Steps to Apply for A Federal Direct Graduate PLUS loan

A Federal Direct Graduate PLUS Loan is another unsubsidized federal loan option for graduate students.  Eligibility is determined after the unsubsidized Federal Direct Loan has been awarded.  However, a student may decline the Direct Loan and borrow only the Graduate PLUS Loan up to the total cost of attendance.  Borrowers must be credit worthy or have a credit worthy cosigner. The current interest rate on a PLUS Loan is 6.28% (fixed) and repayment begins 60 days after the final disbursement. An origination fee of 4.228% (current) is charged on each loan; fee is automatically deducted from each disbursement.  Rates and fees are subject to change based on congressional action.  In-school deferment is an option for students who are enrolled half-time or more, however, interest will accrue if not paid.   A separate Master Promissory Note is required.

  1. Go to website https://studentaid.gov .
  2. Identify as Grad/Prof student and select “Apply for a PLUS Loan.” Complete the application and submit.  The Department of Education will perform a credit check to determine eligibility for a PLUS Loan and will notify you immediately.
  3. If you do not have a prior Graduate PLUS Loan at EMU, a Graduate PLUS Loan Master Promissory Note is also required. Identify as a Grad/Prof Student and select “Complete Loan Agreement for a PLUS Loan (MPN).”

Steps to Apply for a Private Student Loan

Private student loans are another commonly used financing option.  Private loans are available from lenders who offer student loan programs and have differing interest rates, deferment and repayment options and other incentives.  Eligibility is based on the credit history of student borrower and usually, a required co-signer.  Interest rates are often variable and are tied to the credit scores of borrower/co-signer. 

EMU’s lender list for private student loans is included at www.emu.edu/financial-aid/private-loans .  After carefully reviewing the features offered by a wide range of lenders, we have identified these lenders/programs because of their superior combination of savings, customer service, and loan processing reliability.

Many other private student loan programs exist. Please contact the Financial Aid Office if you wish to consider a private loan not included on our list and instructions will be provided for that loan program.

Maintaining Eligibility for Federal Student Loans

Graduate students must achieve “satisfactory academic progress” in order to maintain eligibility for federal student loans.

Graduate SAP policy
Students in all graduate programs will be reviewed for SAP after each payment period and will lose financial aid eligibility (federal and institutional) if their cumulative GPA is less than 2.5 unless “probationary” enrollment status is granted by the program.  If probationary enrollment is granted by the program, the student will be given one probation payment period for continued receipt of financial aid and will be evaluated at the end of the probation payment period.  If the minimum cumulative GPA of 2.5 is not achieved, aid eligibility will be lost regardless of the program’s decision for continued enrollment.  

Graduate students will also be evaluated for credit hour completion rate (credit hours earned compared to credit hours attempted; 67% minimum rate required) and maximum time frame.  Satisfactory progress related to “maximum time frame” will be determined in consultation with the program if needed.