Student and Parent Loan Information

Undergraduate Students

Federal Direct Student Loans

Federal Student Loans require completion of the Free Application for Federal Student Aid (FAFSA).  A Federal Direct Student Loan is either subsidized or unsubsidized. Loan funds are disbursed from the federal government to the school. Interest rates are determined by the government and loan fees are automatically deducted before disbursement of funds.

A subsidized loan is awarded based on financial need. The federal government pays the interest on behalf of the student until graduation or student drops below half time enrollment.

An unsubsidized loan does not require a demonstrated financial need. The student is charged interest from the time the loan is disbursed until it is paid in full. If the student opts not to pay the interest during enrollment and allows the interest to accumulate, it will be capitalized, which means the interest will be added to the principal amount of the loan and will increase the amount the student will need to repay.

Dependent Students may borrow up to:

• $5,500/yr as a freshman, 0-23 credits, $3500 may be subsidized if eligible
• $6,500/yr as a sophomore, 24-55 credits, $4500 may be subsidized if eligible
• $7,500/yr as a junior/senior, 56 or more credits, $5500 may be subsidized if eligible

Independent Students may borrow up to:

• $9,500/yr as a freshman, 0-23 credits, $3500 may be subsidized if eligible
• $10,500/yr as a sophomore, 24-55 credits, $4500 may be subsidized if eligible
• $12,500/yr as a junior/senior, 56 or more credits, $5500 may be subsidized if eligible

The total debt from all outstanding Federal Direct Loans (for undergraduate degrees) cannot exceed $31,000 for dependent students, $57,500 for independent students, of which no more than $23,000 can be subsidized.

The interest rate on a Federal Direct Student Loan is 6.39% for the 25-26 academic year. An origination fee of 1.057% is charged on each loan and is automatically deducted from each disbursement.

Repayment on the full amount begins six months after a student ceases to be enrolled at least half-time. See also the Federal Loan Information page.

Additional Unsubsidized Direct Loans

Additional unsubsidized Federal Direct Student Loan funds may be available to a student if a parent is denied a Federal Direct Parent PLUS Loan. The annual loan limit is $4,000 for freshman and sophomore years, and $5,000 for remaining undergraduate years.  The undergraduate student aggregate maximum for Federal Direct Student Loans is $57,500.

Steps to Apply for the Federal Direct Student Loan

1. All student borrowers must complete the EMU 2025-26 loan request form.
2. Students who are new to EMU or who are returning but have not previously borrowed a Federal Direct Loan must complete:

• Federal Direct Loan Master Promissory Note (MPN)
• Entrance Counseling

Both the MPN and Entrance Counseling are completed at studentaid.gov

Federal Direct PLUS Loans

Federal Direct PLUS loans may be borrowed by parents of dependent undergraduate students enrolled at least half-time to finance educational expenses not covered by other financial aid. The interest rate on a Federal Direct PLUS Loan is 8.94% for the 25-26 academic year. An origination fee of 4.228% is charged on each loan and is automatically deducted from each disbursement.

Repayment of the total amount borrowed (including fees) generally begins after the loan is fully disbursed. However, parents may choose to defer repayment until six months after the date the student for whom the loan is borrowed ceases to be enrolled at least half time. Parents have the option of requesting a deferment as part of the loan request process.  

Eligibility for a Federal Direct PLUS Loan is not based on financial need but filing of a FAFSA is required.  When a parent borrower applies for the loan, a credit check is performed and immediate notification of approval or denial occurs.  Borrowers with adverse credit history may not be eligible or may be required to meet additional criteria. Go to studentaid.gov/understand-aid/types/loans for more information.

Steps to Apply for the Federal Parent PLUS loan

1. Go to website studentaid.gov . Sign in using information for the parent who will be borrowing the Parent PLUS loan.  
2. Select the Parent tab and click on “Apply for a Parent PLUS Loan” and complete application. The Dept of Education will perform a credit check to determine if parent borrower is eligible for a PLUS Loan and notifies borrower immediately.
3. If parent borrower does not have a prior PLUS Loan for the student at EMU, a PLUS Loan Master Promissory Note is also required. Choose “Complete Master Promissory Note” and select “Parent PLUS” to complete MPN.
4. If the Department of Education determines you are eligible for the loan but have had adverse credit history you will be required to complete PLUS entrance counseling. This can be completed at studentaid.gov  

Private Loans

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

Private loans are usually considered after all other financing options have been exhausted. Private loans are not federal student loans and are borrowed from a lender.  They generally do not have the same benefits as a federal loan.   It is important that you research and understand the private student loan interest rate, terms of the loan, repayment options, and customer service support.

Steps to Apply for a Private Student Loan

Applications for private educational loans are through the individual lender’s website. You may wish to do a web search for “private educational loans” to explore the various options for student loans.  While EMU cannot recommend any particular private lender, please feel free to contact the Financial Aid Office if you have any questions or need any additional information regarding borrowing a private student loan.

Contact info for Federal Direct Loan services

The Federal Student Aid Information Center phone number is 800-433-3243. For information on direct loan account information visit studentaid.gov.

You may also contact the EMU Financial Aid Office with additional questions.