Summary: All student loans are subject to borrowing limits. Annual limits specify how much you can borrow in a single school year, aggregate (cumulative) limits specify how much you can borrow through that loan program, and cost of attendance limits specify that the loan amount must be less than the school’s official cost of attendance minus other financial aid received.
Is There a Limit On Student Loans?
Yes. Most student loans have several types of limits on the amount you can borrow.
Annual Student Loan Limits
An annual limit specifies the maximum amount you can borrow in a single academic year in each loan program for which you are eligible.
Aggregate Student Loan Limits
An aggregate limit, sometimes called a cumulative limit, specifies the total amount you are allowed to borrow through each loan program. One of the most common loan programs, the federal Direct Stafford Loan program.
Cost of Attendance Loan Limits
Your financial aid office is not allowed to offer you financial aid in excess of your cost of attendance. Your cost of attendance is determined by your school for each academic year you are enrolled. The cost of attendance will include costs like, tuition, fees, as well as, housing, meals, transportation, etc. Now to apply this to the way you're awarded financial aid. Your school will typically add student loans to your financial aid offer after they apply your scholarships, grants, and work-study aid. Meaning, the cost of attendance (COA) limit is your cost of attendance minus other financial aid received.
The cost of attendance limit may be applied in addition to (or instead of) the annual loan limit. This loan limit is intended to prevent the total of all financial aid, including the student loans, from exceeding your school's determined cost of attendance.
How Student Loan Limits are Calculated
When you take out a student loan, both the annual and aggregate loan limits are applied to the loan amount. Each type of loan limit represents a restriction on the amount you can borrow.
Sometimes, you may want to borrow an amount that satisfies the annual limit, but you will qualify for a lower amount because your total debt would exceed the aggregate loan limit. You will then be restricted to the lower loan amount.
For example:
The Direct Unsubsidized Loan has annual limits for dependent undergraduate students based on the student’s year in school. The 2021-2022 loan limits are:
- $5,500 for freshmen
- $6,500 for sophomores
- $7,500 per year for juniors, seniors, and any additional undergraduate years of study
The Direct Unsubsidized Loan also has an aggregate loan limit of $31,000 for dependent undergraduate students.
Suppose a dependent undergraduate student in a 5-year engineering degree program borrows the annual maximum for each of the first four years, for a total of $27,000. During the student’s fifth year the annual limit would be $7,500. However, as the next table shows, the remaining aggregate loan eligibility is only $4,000 after the end of the fourth year. So, the student can’t borrow the $7,500 annual maximum as a fifth-year senior. Instead, this student can borrow no more than $4,000.
| Year | Annual Limit | Amount Borrowed | Aggregate Debt | Remaining Aggregate Loan Eligibility |
|---|---|---|---|---|
| First Year (Freshman) | $5,500 | $5,500 | $5,500 | $25,500 |
| Second Year (Sophomore) | $6,500 | $6,500 | $12,000 | $19,000 |
| Third Year (Junior) | $7,500 | $7,500 | $19,500 | $11,500 |
| Fourth Year (Senior) | $7,500 | $7,500 | $27,000 | $4,000 |
| Fifth Year (Senior) | $7,500 | $4,000 | $31,000 | $0 |
Private Student Loan Limits
Private student loans usually have an annual limit equal to the cost of attendance minus other financial aid (including accepted federal student loans). Most private student loans have aggregate loan limits of $75,000 to $120,000 for undergraduate students and higher limits for graduate and professional students. These aggregate loan limits usually include all student loan debt, including both federal and private student loans.
Medical and dental residency and relocation loans and law bar study loans typically have annual loan limits that are 50% lower than the annual loan limits for students who are currently enrolled in school.
Even though you are working with a private student loan lender, your school will still certify the total amount you are able to borrow. Your school will let your lender know if adjustments needs to be made in order to ensure you are not offered financial aid (which includes student loans) in excess of your cost of attendance minus other aid received.
Federal Student Loan Limits
A federal student loan limit isn’t the amount you will be able to borrow, it’s the maximum the school can approve you to borrow. Your school might give you less than the loan limit.
The annual and aggregate borrowing limits on federal student loans vary based on several factors:
- Loan Program (Direct Subsidized Loan, Direct Unsubsidized Loan, or Direct PLUS Loan)
- Dependency Status (Dependent or Independent)
- Year in School or Grade Level (Freshman, Sophomore, Junior, Senior, or Graduate Student)
- Health Professional Student
If your grade level changes in the middle of the academic year, you may qualify for higher annual loan limits. You would then be eligible to borrow the difference between the new annual loan limit and the amount you already borrowed during the same academic year.
Similar rules apply to transfer students. Transferring from one school to another does not reset the loan limits. This can get a little tricky is you are transferring in the middle of an academic year. Your school will essentially let you borrow the difference between your annual loan limit at the new school and the amount received at the previous school. All loans borrowed through a loan program (i.e., Direct Stafford Loans) will count towards your aggregate loan limit.
Loan fees (which may be added to the loan balance) and capitalized interest do not count against the loan limits.
Direct Subsidized and Unsubsidized Loan Limits
Your school's financial aid office determines how much you will be able to borrow each year. This amount might be less than the annual loan limit.
When it comes to the Direct Stafford Loan program, it's important to remember there are two types of loans in the this loan program: Direct Subsidized Loans and Direct Unsubsidized loans. Although these loans are part of the same program, Direct Subsidized Loans have their own limits.
Eligibility for Direct Subsidized Loans is based on demonstrated financial need, up to the annual and aggregate loan limits. (As of July 1, 2012, students attending graduate school or professional school are no longer eligible to borrow new Direct Subsidized Loans.)
One more thing to keep in mind, beyond annual and aggregate loan limits, there is a maximum eligibility period for you to receive Direct Subsidized Loans. For first-time borrowers whose first loan was obtained on or after July 1, 2013, there is a maximum eligibility period of time that you can receive Direct Subsidized loan funds.You are only able to receive Direct Subsidized loans for no more than 150% of the published length of your program.
For example, if you are enrolled in a four-year degree program, the maximum amount of time you can receive Direct Subsidized loan funds is 150% of four years, which is six years.
Eligibility for Direct Unsubsidized Loans does not depend on demonstrated financial need.
Aggregate loan limits, sometimes referred to as cumulative limits, may be refreshed by repaying the debt. So, if you have hit the aggregate loan limit, you will need to pay down your loan before you will be eligible to borrow more.
The aggregate loan limits for students attending graduate school or professional school students include any undergraduate federal student loan debt.
Borrowing Limits for Direct Subsidized and Unsubsidized Loans
Direct Unsubsidized Loan Limits for Health Profession Students
Health profession students, such as students enrolled in medical school, are eligible for higher Direct Loan limits.
There are two different levels of increased loan limits, depending on the area of study (see table). These limits are available only to health profession students enrolled at U.S. colleges and universities. Students enrolled at foreign institutions are not eligible.
| Health Professions Programs Eligible for Higher Direct Unsubsidized Loan Limits |
Direct Unsubsidized Loan Limit
9-Month Academic Year
|
Direct Unsubsidized Loan Limit
12-Month Academic Year
|
|---|---|---|
|
$40,500 | $47,167 |
|
$33,000 | $37,167 |
Some schools may also offer 10-month or 11-month academic programs, which would have different annual limits than those listed here. Check with your school’s financial aid office to get the limits for your program.
Other Direct Loan Limits
Additional Loan Funds for Preparatory Coursework
- All students: Up to $2,625 for coursework required for enrollment in an undergraduate degree or certificate program
- Bachelor’s degree recipients: Up to $5,500 for coursework required for enrollment in a graduate or professional degree or certificate program
- Bachelor’s degree recipients: Up to $5,500 for state-required teacher certification coursework
These loan funds are limited to a period of 12 consecutive months. Any loans received for preparatory coursework will be counted towards your Direct Loan aggregate loan limits.
If Parents Refuse to File the FAFSA
If a dependent undergraduate student’s parents refuse to complete the FAFSA (Free Application for Federal Student Aid), the college’s financial aid administrator may allow the student to borrow additional Direct Unsubsidized Loans despite the incomplete FAFSA. The student, however, will not be eligible for the Direct Subsidized Loan, the Federal Pell Grant, or other forms of federal student aid.
Increased Direct Unsubsidized Loan Limits for Dependent Undergraduate Students
There are times when a dependent student can become eligible for the same Direct Unsubsidized Loan limits as independent students:
- Parents are denied eligibility for a Parent PLUS Loan
- Other documented "exceptional circumstances," even if parents aren't denied eligibility for a Parent PLUS Loan
In some exceptional circumstances, college financial aid administrators may allow a dependent undergraduate student to borrow at the higher Direct Unsubsidized Loan limits available to independent students without requiring the parent to obtain a denial of a Parent PLUS Loan. For example, you would need to successfully qualify for a dependency override.
College financial aid administrators aren't required to make the student eligible for the higher loan limits, even if exceptional circumstances exist.
Prorated Annual Loan Limits for Undergraduate Students
Annual loan limits for Direct Loans are prorated (adjusted) for undergraduate students who are enrolled in programs that are:
- Shorter than one academic year; or
- Remaining period of study is shorter than one academic year
For example, if an undergraduate student in a 4-year Bachelor’s degree program will be graduating at the end of the fall semester (halfway through the academic year), the student is eligible for half of the annual loan limit for seniors.
Half-time students are eligible for the same annual loan limits as full-time students.
Direct PLUS Loan Limits
The annual loan limit for the Direct PLUS Loan (Parent PLUS Loan or Grad PLUS Loan) is the annual cost of attendance minus other aid received during the enrollment period. There is no aggregate loan limit. The loan limits are the same for both parents of undergraduate students as well as graduate students.
Direct Consolidation Loan Limits
There are no limits on Direct Consolidation Loans (also known as Federal Consolidation Loans), other than the underlying limits on the loans included in the consolidation loan.
Recommendations
- File the FAFSA every year to maintain your eligibility for student aid.
- When you compare different types of student loans, make sure you understand both the annual and aggregate loan limits.
- If you are a dependent undergraduate student and your parents won’t qualify for a Parent PLUS Loan due to an adverse credit history, encourage them to apply anyway because a denial will make you eligible for the same Direct Loan limits as an independent student.
- If you’ve hit the annual and/or aggregate limits on federal loans, but you still need additional funds to complete your education, consider private student loans as a potential option.
Compare Featured Lenders
Sallie Mae student loans
- Variable Rates: 1.62% APR - 11.73% APR. Fixed Rates: 3.75% APR - 12.85% APR. Lowest rates shown include 0.25% interest rate discount with auto debit payments.1
- Apply online in minutes and receive an instant credit result2
- Multiple repayment options from in-school payments to deferred.1 No origination fee or prepayment penalty3
- You may be 4X more like to be approved with a cosigner4 and it may help you get a better rate.
- Only undergraduate student loan that offers 4 months of free Chegg® study help5
- Borrow up to 100% of school-certified expenses, whether you're online or on campus6
Borrow Responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
This loan is for undergraduate students at participating degree-granting schools. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend a participating school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and provide an unexpired government-issued photo ID to verify their identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.
2From January 1, 2021 to December 31, 2021, instant credit decisions were provided to 98% of applicants. Other applications received credit decisions in 3 to 5 business days.
3Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
4Based on a comparison of approval rates for Sallie Mae Smart Option Student Loans for Undergraduate Students who applied with a cosigner versus without a cosigner from May 1, 2020 through April 30, 2021.
5This promotional benefit is provided at no cost to borrowers with undergraduate or parent loans with a first disbursement between May 1, 2021 and April 30, 2024. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. Chegg Study® offers expert Q&A where students can submit up to 20 questions per month. No cash value. Terms and Conditions apply. Please visit http://www.chegg.com/legal/smtermsandconditions for complete details. This offer expires one year after issuance.
6Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.
Information advertised valid as of 5/13/2022
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Smart Option Student Loans® are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
© 2022 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.
College Ave student loans
- Competitive fixed and variable APRs starting at 1.19%1
- Multiple repayment options including: full principal and interest, interest-only, deferred, and flat payment
- Flexible payment terms ranging from 5, 8, 10, and 15 years2
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum)3
- No origination, application and processing fees, no fees for early repayment
- Apply online in 3 minutes and get an instant credit decision
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 4/19/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Variable: 1.26% APR (with auto debit discount) to 10.40% APR (without auto debit discount)1
Fixed: 3.34% APR (with auto debit discount) to 11.68% APR (without auto debit discount)1
Lowest rates listed above include an interest rate reduction for eligible applications, enrollment in auto debit, and are available only to the most creditworthy applicants. Advertised variable rates reflect the starting range of rates and may increase over the life of the loan. [See Disclaimer]
Multiple Term Options Available
Nelnet student loans
- Variable: 1.26% - 10.40% APR (with auto debit discount) Fixed: 3.34% - 11.68% APR (with auto debit discount)1
- Multiple Loan Terms
- Auto Debit Savings2
- Easy Cosigning and Cosigner Release3
- Flexible Repayment Options
- No Origination Fees
- Member FDIC
Lowest rates listed above include an interest rate reduction for eligible applications, enrollment in auto debit, and are available only to the most creditworthy applicants. Advertised variable rates reflect the starting range of rates and may increase over the life of the loan. [See Disclaimer]
1Fixed interest rates range from 3.34% APR (with auto debit discount) to 11.68% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s)
Variable interest rates range from 1.26% APR (with auto debit discount) to 10.40% APR (without auto debit discount). Your interest rate will depend on your (and if applicable, your cosigner’s) credit qualifications. Variable rates may increase after consummation. Variable rates for Nelnet Bank Student Loans are calculated as the One-Month SOFR plus the applicable Margin percentage. Variable rates will be based on the highest One-Month SOFR as published by the Federal Reserve Bank of New York on the twenty-fifth day (or the next business day) of the immediately preceding calendar month. The variable rate may change on the first day of each month if the SOFR index changes. This may result in higher monthly payments. The current One-Month SOFR index is 0.67% as of May 1, 2022.
The lowest interest rate for each loan type requires automatically withdrawn (“auto debit”) payments. The lowest rate is available only to the most creditworthy applicants. Not all borrowers will receive the lowest rate., The interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the borrower and, if applicable, the cosigner, (2) the repayment option and loan term selected, and (3) the loan type selected. If approved, applicants will be notified of the rate qualified for within the stated range.
2Auto debit discount applies when full payments (including both principal and interest) are automatically drafted from a bank account. The auto debit discount will continue to apply during periods of approved forbearance or deferment if the auto debit discount was in effect at the time of receiving the forbearance or deferment. Auto debit discount will remain on the account unless (1) the automatic deduction of payments is canceled or (2) there are three consecutive automatic deductions returned for insufficient funds at any time during the term of the loan.
3A request for the cosigner to be released can be made by either the borrower or cosigner when each of the following conditions has been met:
- The account must have been in full principal and interest repayment for at least 24 months.
- Twenty-four consecutive, on-time principal and interest payments, or lump sum equivalent, must have been made.
- NOTE: A lump sum payment does not replace the requirement to have been in full principal and interest repayment for at least 24 months. Interest-only or fixed-pay payments while enrolled in school do not qualify towards the 24 consecutive on-time payments.
- The loan must be current at the time of request.
- The loan must not have been in deferment, hardship forbearance, or other alternative payment assistance plan within the past 24 months.
- The loan must not have been permanently modified from its original terms in the credit agreement.
- The primary borrower must be a U.S. citizen or have permanent residency in the United States.
- The primary borrower must meet the age of majority requirement in their permanent state of residency.
- Requirements are subject to change.
If all of these conditions have been met, then an application for cosigner release may be submitted. The primary borrower is required to demonstrate they have the ability to assume sole responsibility for the loan(s) by providing proof of income, meeting debt-to-income requirements, and having a satisfactory credit history. (A credit report will be obtained during the review process).
If you have questions on cosigner release, or would like to apply, contact us via email or phone at [email protected] or 800.446.4190.
Variable: 0.00% APR - 23.00% APR1
5-10 years
Edly No Cosigner Required
- MUST BE a US citizen or permanent resident
- MUST BE a college junior, college senior, or grad student
- No co-signer required
- Get approved in minutes. Pre-qualify without affecting your credit score
- Income-based repayment with built-in protections, like deferred payments if you lose your job
Edly Student IBR Loans are unsecured personal student loans issued by FinWise Bank, a Utah chartered commercial bank, member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply.
Loans from $5,000 - $25,000 Example: $10,000 IBR Loan with a 7% gross income payment percentage for a Senior student making $65,000 annually throughout the life of the loan. Payments deferred for the first 12 months during final year of education. After which, $270 Monthly payment for 12 months. Then $379 Monthly payment for 44 months. Followed by one final payment of $137 for a total of $20,610 paid over the life of the loan.
About this example: The initial payment schedule is set upon receiving final terms and upon confirmation by your school of the loan amount. You may repay this loan at any time by paying an effective APR of 23%. The maximum amount you will pay is $22,500 (not including Late Fees and Returned Check Fees, if any). The maximum number of regularly scheduled payments you will make is 60. You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 annually or if you lose your job and cannot find employment.
Ascent student loans
- AFFORDABLE variable rates starting at 1.64% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- NON-COSIGNED option may be available for undergraduate juniors and seniors.
- PAY AFTER LEAVING SCHOOL – Customize your loan with flexible repayment options – start payments after graduation.
- FORGET FEES – No application, origination or disbursement fees. No prepayment penalty if you choose to pay your loan off early.
- COVER UP TO 100% of your tuition and eligible living expenses.
* Ascent loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs
Rates are effective as of 05/01/2022 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: www.AscentFunding.com/Rates
1% Cash Back Graduation Reward subject to terms and conditions. Click here for details. Cosigned Credit-Based Loan student borrowers must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs are available for the most creditworthy applicants and may require a cosigner.
Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
SoFi student loans
- Variable Rates: Starting variable rates range from 1.69% APR - 11.97% APR (with autopay)*, and will never exceed 13.95% (sometimes lower in certain states as required by law)
- Fixed Rates: Fixed rates range from 3.47% APR to 11.16% APR (with autopay)*
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees. Period
- Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
- 0.25% discount when you set up autopay*
*Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
Fixed: 7.49% APR - 12.99% APR (not including 0.5% ACH discount)*
10 years
$20 minimum/month OR interest-only payments while in school
Funding U student loans
- Up to $15,000 per academic year with no cosigner required
- Fixed Rates (APR) from 7.99% to 12.49% (plus an additional 0.5% discount for ACH auto-payments)*
- No origination fee. No late payment fees. No prepayment penalties.
- Quick prequalification and rate check that won’t impact your credit
- Multiple repayment options
- Dedicated loan officer for every borrower
New student loans of $3,001 up to $15,000 per school year will be granted to residents of eligible states enrolled as undergraduates in bachelor’s degree or equivalent- granting programs at eligible schools.
Funding U offers fixed interest rate loans, without a cosigner, to students who are serious about their academic success and post-grad career. Eligibility is determined by several factors, including: school graduation rate, class hours completed, estimated graduation date, academic record, major; employment or internship experience; and, other academic and non-academic activities that demonstrate the borrower is working hard towards academic and professional goals and is on track to be able to repay debt accrued.
Eligibility is also limited by state of permanent residence. Terms and conditions vary by state. Not all loans are available in all states. Loan amounts available may vary by state.
DISBURSEMENT All Loan proceeds will be sent to the student borrower’s school around the time classes begin, on the date your school prefers. Funding U will require documentation to verify your registration and certify your loan need prior to disbursement. Your school must also certify your loan need. Your loan may be adjusted based upon the amount of need certified by your school.
REPAYMENT TERMS New Undergraduate loans for the 2021-2022 school year will have an Annual Percentage Rate (APR) of 7.49% to 12.99%. All loans have a fixed interest rate range of 7.49%* to 12.99% (before consideration of ACH discount). There is no origination fee. Interest accrues while students are in school.
In-school partial payments: Students may choose either $20 monthly as a “Fixed Payment” while enrolled in school or “Interest Only” payments. These payments will be reported to credit agencies like other student loans. All loans have a 10-year repayment term (paid monthly over 120 months starting 6 months after graduation). Both In-School payment options may not be available in all states. Student’s electing to make Interest-Only payments will receive a 0.5% interest rate discount.
PREPAYMENT PENALTIES There is no prepayment penalty on your loan.
Additional details, terms & conditions will be included in each loan offer.
*The lowest rate shown is available only to juniors & seniors with outstanding academic performance and is not typical of the rates offered to most borrowers. Your actual rate will depend on creditworthiness and other factors, such as your school year and GPA.
Payments based on a fixed percentage of future income
Lower (or no) payments when you're unemployed or underemployed.
Payments based on a fixed percentage of future income for up to 60 months after graduation
Only pay when earning more than the minimum income threshold ($30k or $40k depending on program)
Payments stop early if you ever hit the payment cap (2.0x your initial funding amount)
Stride Income Share Agreements
- No accruing interest!1
- Payments based on a fixed percentage of future income
- Lower (or no) payments when you're unemployed or underemployed.
1Graduate programs or second Bachelor's only (Must have Bachelor's degree); Must meet minimal credit standards for approval; US Citizens and permanent residents only; School and program restrictions apply
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