Federally regulated student loans offer fixed interest rates, flexible repayment plans, student in-school deferment, and student repayment forbearance. These loans are recommended to students before considering private educational loans (alternative loans).
-
Federal Direct Stafford
Federal Direct Stafford loans fall into one of two categories:
- Subsidized: the government pays the interest while you're in school. (Available to undergraduate students ONLY.)
- Unsubsidized: you pay the interest now, although you can have it accrue until repayment starts. This adds the interest payments to the loan balance, increasing the size and cost of the loan. (Available to all students.)
Federal Direct Stafford loans are offered to undergraduate students determined to be eligible based upon their FAFSA. To receive a Subsidized Stafford loan your FAFSA results must demonstrate financial need. Students who meet the federal loan eligibility requirements, regardless of need, are eligible for the Unsubsidized Stafford Loans (undergraduate, graduate, law, and APD). Income and assets will not prevent you from receiving Federal Direct Student Loans; income and assets only determine the amount to be subsidized. You must complete a Master Promissory Note (MPN) and Entrance Interview before receiving your first Federal Direct Stafford Loan at UB. Students must be enrolled at least half time (6 credits) to receive federal student loans.
For additional information concerning Federal Direct Loans including interest rates, fees, consolidation, deferments and loan calculators, see the Federal Student Aid Direct Loan Site.
Maximum Stafford Loan Limits -
Federal Direct Graduate Plus
Even though the Federal PLUS Loan is available to all graduate and professional students regardless of financial need, you must still file the FASFA to be eligible. Eligibility is offered to law students at the time of initial awarding, evening law students are awarded partial eligibility as most evening students are working full time, an option not available to full time law students. Graduate students interested in this program should contact the Office of Financial Aid to determine eligibility.
With a Grad PLUS Loan, you may borrow up to the full cost of your education, less other financial aid including Federal Stafford Loans, scholarships, grants, and tuition remission. If you receive additional aid, or if your cost of attendance is reduced through a change in residency, your Graduate Plus eligibility will be adjusted.
Federal Grad PLUS Interest Rate and Credit RequirementsThe Grad PLUS Loan has a higher interest rate than Federal Stafford Loans and students should exhaust their Federal Stafford Loan eligibility before applying for a Grad PLUS Loan. A credit check is required, although credit requirements are less stringent than for alternative student loans.
You may reduce the amount you would like to borrow when you accept this loan on MyUB.Consult the "4 Steps to Financial Aid" section on MyUB for directions on how to accept less than the full amount offered in financial aid.
If this is the first time you have accepted a Grad PLUS Loan at UB (since fall 2009) you must complete a Federal Grad PLUS Master Promissory Note (MPN) and the Entrance Counseling for Graduate and Professional Student at http://www.studentloans.gov/.
EnrollmentTo receive any federal student loans, including the Direct Grad PLUS Loan, you must be enrolled at least half time. Half time for fall and spring semesters is six (6) credits (Graduate, Law, and APD students can be considered half time with three (3) credits during the summer semester ONLY). Undergraduate students do not qualify for the Federal Direct Grad PLUS Loan.
Federal Direct Grad PLUS Loan Limits and Terms- The amount of Graduate PLUS Loan that a student can borrow is equal to the cost of attendance (student budget) minus all other financial aid.
- The Federal Graduate PLUS Loan is a low-interest student loan for graduate students attending at least half time. The interest rate is fixed at 7.9%. There is a 2.5% loan origination fee deducted from the loan by the U.S. Department of Education. This loan fee includes an up-front rebate that assumes you will make 12 on-time monthly payments.
- Unlike other federal loans, the Grad PLUS loan requires credit approval.
- The Federal Direct Graduate PLUS loan can be consolidated with other federal loans after graduation.
Refer to the Federal Student Aid Q and A for further information regarding Direct PLUS Loans for Graduate and Professional Students.
Applicant Services for PLUS Loan Borrowers- 800-557-7394 8 a.m. to 8 p.m. (ET), Monday thru Friday
- 877-461-7010 Telecommunication Device for the Deaf (TDD)
PLUS Loan borrowers can contact Applicant Services for:- Credit appeal overrides
- Endorser application questions
Credit CriteriaCredit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:
- Any current delinquency of 90 days or more
- Any of the following items within the preceding five years of the date of the credit report: default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, open collection
Recent changes in the law that governs the terms and conditions of PLUS Loans establish a specific extenuating circumstance for certain PLUS Loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a PLUS Loan applicant may qualify for a PLUS Loan based on extenuating circumstances if the applicant:
- Has been or is delinquent for 180 days or less on mortgage loan payments, or on medical bill payments for the applicant or the applicant’s family, and
- Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to PLUS Loan applicants
Credit ApprovalCredit approval is valid for three months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding three months.
If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.
-
Federal Parent Plus
The Parent Plus Loan program allows parents to borrow on behalf of their dependent undergraduate students to help cover the costs of their student's education, including tuition, fees, books, housing, transportation, etc. The maximum amount available is determined by the amount of the student's cost of education minus other financial aid. The parent borrower's eligibility is based on his or her credit worthiness.
Loan refunds, after tuition and fee expenses are covered, can be made to the student or the parent and are sent by mail. Loans funds are disbursed to the student account on the first day of class, with refunds expected within 10 business days of when the refund is reflected on the Student Account Summary.
Students who plan to use Financial Aid Funds for housing can request a Landlord Financial Aid Confirmation that can be submitted to prospective landlords to validate that Financial Aid funds will be forthcoming. This confirmation will include the anticipated financial aid that is available to the student as well as the time frame when funds will be available to the student.
Additional information regarding the application for a Parent PLUS Loan can be found here.
-
Federal Perkins
Federal Perkins Loans are awarded to undergraduate, graduate, and law students with exceptional financial need, especially those with exceptional circumstances and expenses based on funding availability. When borrowing this loan, students should be aware that their lender is the University of Baltimore for the Perkins Loan. Funding is extremely limited and not all students who are eligible will be awarded.
- The interest is paid by the federal government during the in-school and 9-month grace periods.
- There are no origination or guarantee fees.
- The interest rate is 5%.
- There are flexible loan repayment and assistance options offered through the Bursar's Office.
If you are in repayment of a Perkins Loan with UB and have questions, contact the Bursar's Office at 410.837.4848.
-
Private Education Loans
This loan program allows students to borrow funds, up to the total cost of education, minus other financial aid including federal student loans. These loans can be beneficial to students who need funding over and above their eligibility for Federal Direct Loans. For law and graduate students, the Graduate Plus Loan is designed for eligibility beyond the Stafford Loan. For dependent undergraduate students the Parent Plus Loan is designed for eligibility beyond the Stafford Loan. Only independent undergraduate students should consider the private loan after Stafford eligibility. Students who are ineligible for the federal loan programs, and those who do not meet the half time enrollment requirement for Federal Direct Loans, should consider a private student loan. The borrower's eligibility is based on his or her credit worthiness. Some students will be required by the lender to have a co-signer. Contact the Office of Financial Aid to determine the amount of eligibility and apply directly with the lender of your choice.
We are providing this information to increase your options for financial aid. However, we strongly encourage you to take advantage of the federal loan programs first. Many educational loans require immediate repayment and can not be deferred.
Graduate and law students should consider the Graduate PLUS Loans as an alternative to the private educational loan. Unlike the undergraduate Parent PLUS Loan, the student, not the parent, is the borrower. Some of the Graduate PLUS features include:
- Consolidation and repayment options
- Automatic in-school deferment
- Low fixed interest rate
- Fixed monthly payment