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Loan Programs

Federal Subsidized Stafford Loan

The Federal Subsidized Stafford Loan is the first loan choice for most students. This loan is based on financial need and the federal government subsidizes the interest during your school enrollment.

The terms include:

  • Annual Loan Limit:
    • $3,500 Undergraduate-level (Year 1)
    • $4,500 Undergraduate-level (Year 2)
    • $5,500 Undergraduate-level (Year 3 and 4)
    • $8,500 Graduate-level
  • Cumulative Loan Limit:
    • $23,000 Undergraduate-level
    • $4,500 Undergraduate-level (Year 2)
    • $5,500 Undergraduate-level (Year 3 and 4)
    • $8,500 Graduate-level
  • Interest Rate:
    • Fixed at 6.8% for graduate students
    • Fixed at 4.5% for undergraduate students
  • Number of Disbursements: At least two per academic year
  • Repayment Term: 10 years with a minimum monthly payment of $50
  • Loan Fees: Per Federal regulations, a .5% fee will be deducted from the proceeds of your loan. The Federal Direct Loan Servicer will mail the borrower a disclosure statement indicating the exact loan terms.

Federal Unsubsidized Stafford Loan

The Federal Unsubsidized Stafford Loan is available for independent students and dependent students and is not based on financial need. The student is responsible for accrued interest, and can defer interest payments until graduation.

The terms include:

  • Annual Loan Limit (Independent students and dependent students whose parents cannot borrow a Plus Loan)
    • $6,000 Undergraduate-level (Year 1 and 2)
    • $7,000 Undergraduate-level (Year 3 and 4)
    • $12,000 Graduate-level
  • Annual Loan Limit (Dependent students)
    • $2,000 Undergraduate-level (Year 1 and 2)
    • $2,000 Undergraduate-level (Year 3 and 4)
  • Cumulative Loan Limits (i.e. total limit for Subsidized and Unsubsidized loans):
    • $57,500 Undergraduate-level
    • $138,500 Graduate-level
  • Interest Rate: Fixed at 6.8%
  • Number of Disbursements: At least two per academic year
  • Repayment Term: 10 years with a minimum monthly payment of $50
  • Loan Fees: Per Federal regulations, a .5% fee will be deducted from the proceeds of your loan. The Federal Direct Loan Servicer will mail the borrower a disclosure statement indicating the exact loan terms.

Federal Plus Loan

The Federal PLUS Loan is not need-based and is for:

  • Parents of undergraduate students
  • Students in graduate programs

A credit check is completed prior to loan approval. If the applicant has an adverse credit history, he/she will not be eligible for a PLUS Loan and the loan application will be denied. In this scenario, the dependent/undergraduate student will be eligible for a Federal Unsubsidized Loan. If a graduate student is denied a PLUS loan, he/she may apply for an alternative loan.

  • Loan Limit: Varies (Cost of attendance less other aid.)
  • Cumulative Loan Limit: None
  • Interest Rate: Fixed at 7.9%
  • Number of Disbursements: Two per academic year
  • Repayment Term: 10 years with a minimum monthly payment of $50.
  • Loan Fees: Per Federal regulations, a 2.5% fee will be deducted from the proceeds of your loan. The Federal Direct Loan Servicer will mail the borrower a disclosure statement indicating the exact loan terms.

Alternative Loans

Alternative loans may be used to cover the differences between the financial aid you receive and your total cost of attendance, as determined by the Mayo Financial Aid Office. Alternative loans generally have higher interest rates and origination fees than other educational loans. The loan terms and conditions vary by lender. Please consult with the Financial Aid Office to obtain more information on these types of loans.

  • ART890660