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Loan Information

There are various loan options for available to undergraduate students.

Direct Lending Private Loans Additional Loan Information

Federal Direct Loans- Direct Lending for Students/Parents

Steps to complete the student loan application

Students who are new to EMU or have not borrowed a Direct Loan before must complete a Federal Direct Loan Master Promissory Note (MPN) and Entrance Counseling.

  1. Complete the FAFSA.
  2. Complete the appropriate loan request form (for graduate and undergraduate and the correct year)
  3. Complete the Master Promissory Note (MPN) and entrance counseling at studentaid.gov

Steps to complete a federal parent or graduate PLUS loan

If you borrowed a PLUS loan at EMU in the 2019-2020 school year you do not need to complete a new Master Promissory Note (MPN).

  • Complete the Request for Direct PLUS and Master Promissory Note (MPN) at studentaid.gov
  • If you want EMU to complete a credit check with the department of Education before completing a PLUS MPN complete and return the Credit Check Permission Form

Contact info for Direct Loan Services

The Department of Education Direct loan Program Customer Service phone number is 800-848-0979. For information on direct loan account information visit studentaid.gov.

You may also contact EMU financial aid officers with additional questions.

Private Loans

Private loans should only be borrowed when all other financing options have been exhausted. Private loans are not federal student loans; they are borrowed from a bank and generally do not have the same benefits of a federal loan. Private loans are based on credit, so not everyone will be eligible. The interest rate is most often a variable interest rate; the rate is determined based on the borrowers credit and the credit of a co-signer. It is highly recommended that students have a credit worthy co-signer; most often a credit worth co-signer will lower the interest rate.

After carefully reviewing the features offered by a wide range of lenders, we have chosen the lenders below because they offer a superior combination of savings, customer service, and loan processing reliability. Lenders are listed in alphabetical order. Click on the lender to find additional information about the loan and to apply for the loan.

There are many student private loan lenders and EMU will work with any lender. For more information about the relationship the university has with private student loan lenders view the Code of Conduct.

Additional Student Loan Information

Federal Direct Student Loans

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 usually differ between the two types of loans. The annual rates are “fixed” and cannot exceed 8.25%. 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 is not based on 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.

Repayment on the full amount begins six months after a student ceases to be enrolled at least half-time. There are Federal Loan Cancellation provisions up to $5,000. See also the Federal Loan Information page.

Additional Unsubsidized Direct Loans

Additional unsubsidized Federal Direct Student Loan funds may be available to a student when 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 Fed Direct Student Loans is $57,500.

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 PLUS Loan is fixed and the rate is determined annually by the U.S. Department of Education (usually by June 30.)  Current interest rate is 5.30% and the processing fee is 4.228%. Repayment of the total amount borrowed (including fees) generally begins within 60 days after the second disbursement. However, a parent may request deferment of repayment. 

Eligibility for a Fed 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 https://studentaid.ed.gov/sa/types/loans for more information.

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