Loans

Loans are funds that are borrowed, by the student, to assist with college expenses and must be repaid once a student is no longer enrolled in college coursework.

Federal Direct Student Loans

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.

The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans.

Interest is the additional money charged to a student for using the loan funds while in school.

For example, if there is a 5% interest on a $5,000 loan, the amount that requires repayment would be $5,250.

There are two different types and the differences can affect how much a student must eventually repay.

• Subsidized: The interest on this loan is paid by the federal government while the student is enrolled in college.
• Unsubsidized: The interest on this loan accrues while the student is in college but does not require repayment until student is no longer enrolled in at least 6 credit hours.

There are annual and lifetime maximums on each type.

More information on Federal Direct Student Loans can be found on the Federal Student Aid website.

Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Department of Education makes educational loans available to biological or adoptive parents for enrolled undergraduate dependent students.

These loan awards do require repayment and are approved based on the credit of the parent. The maximum loan amount is the cost of attendance minus any other financial aid received.

More information about PLUS can be found on the Federal Student Aid website.

Federal Graduate PLUS

The Department of Education makes educational loans available to graduate or professional students enrolled at least half-time at an eligible college, such as East Stroudsburg University, in a program leading to a graduate or professional degree or certificate.

More information about Graduate PLUS can be found on the Federal Student Aid website.

Alternative / Private Student Loans

Non-federal loans (or Private Alternative Student Loans) for educational purposes can supplement federal/state aid or may be used when the student is ineligible for Federal Direct Student Loan/PLUS loans due to lack of satisfactory academic progress, enrollment in ineligible programs, or having exhausted federal/state aid eligibility.

You are encouraged to use a cosigner with a good credit rating, regardless of your own credit history, as an endorser provides additional security to the lender. This will in turn, give you better terms and conditions is many cases.

Please be sure to explore your eligibility for all federal and state financial aid options before requesting an alternative loan.

ESU's provides a list for alternative lenders available at ELM Select. Borrowers have the right to select any lender they choose, this is simply a list of lenders ESU students have used in the past and is not meant as an endorsement of any lender.

ESU recommends when you select your lender, you find one that best suits your needs and offers you the best rate for your loan. We also recommend that you only borrow what you absolutely need to complete the semester as this is a loan and it will need to be repaid with interest.