Graduate Loans
Student loans can be necessary resource to help pay for college expenses.
Student loans are borrowed funds that you’ll pay back with interest once you leave college. You can either take a loan out through the federal government (typically has lower interest rates and long terms) or through a private lender.
Graduate students must be enrolled in at least 3 credit hours to receive loans.
The FAFSA (Free Application for Federal Student Aid) is your application for the Direct Unsubsidized loan.
The Direct Unsubsidized Loan is available to graduate students and is not based on financial need. It is a federal loan that must be repaid including all interest. ”Unsubsidized” means that the student (rather than the Federal Government) pays interest from the date funds are disbursed, even if they are still in school. You can choose to defer the interest and have it added to the principal balance - this is called capitalizing your interest. However, capitalizing the interest will increase the amount you have to repay.
Principal and interest payments begin 6 months after your last date of enrollment. Repayment calculators are available here.
Studentaid.gov will show the current interest rate and loan fee. The annual loan limit for Graduate level Direct Unsubsidized loans is $10,250 per semester ($20,500 per 2 term academic year) with an aggregate loan limit of $138,500. Doctor of Pharmacy and Master of Health Administration programs are authorized up to $16,500 per semester ($33,000 per 2 term academic year) with an aggregate loan limit of $224,000.
After completion of the FAFSA you will be notified from the Financial Aid Office through your student email when your loan offer is available to review. View your aid offer letter on your student portal which will include instructions on how to Accept, Reject or Reduce the amount you would like to borrow. Students must have completed a Master Promissory Note (MPN) and Loan Entrance Counseling in order for loans to be disbursed. Your loan disbursement will be split over 2 semesters based on your program’s academic year.
The Federal Graduate PLUS Loan is a loan specifically for independent graduate students to help cover costs not covered by the Direct Unsubsidized Loan. It is a federal loan that must be repaid including all interest. The maximum amount you can borrow is the cost of attendance minus any other financial aid you receive.
Interest on Graduate PLUS loans will accrue and should be paid monthly even if you are still in school. You can choose to defer the interest and have it added to the principal balance - this is called capitalizing your interest. However, capitalizing the interest will increase the amount you have to repay.
Repayment Calculator
Principal and interest payments begin 6 months after your last date of enrollment.
Interest rates are set by the Department of Education each year. There is also a loan fee for all Grad PLUS loans. Eligibility for this loan is based on credit history as set by federal guidelines. Be sure you file your FAFSA before applying for a Grad PLUS loan.
Apply for a Grad PLUS Loan
More information about federal loans can be found on their website.
After completion of the PLUS Application you will be notified from the Financial Aid Office through your student email when your loan offer has been added to your account. Students must have completed a Master Promissory Note (MPN) and Loan Entrance Counseling in order for loans to be disbursed. (This is separate from the MPN and EC completed for Direct Loans). Your loan disbursement will be split over 2 semesters based on your program’s academic year.
Private loans are often considered a last resort when financing your college education. We strongly encourage you to borrow from the Federal Student Loan program before considering private loans. Generally, you will receive a better interest rate on Federal Student Loans than with private loans. However, if you need additional funding beyond your Federal Student Loan eligibility, private loans may help you cover unmet expenses.
Compare Federal vs. Private Student Loans
Private loans are made by banks and other financial institutions and are subject to their terms. Eligibility for these loans requires a credit check, and students are often required to have a cosigner to qualify.
Lipscomb University does not endorse or recommend any specific private loan product. In determining which private loan is best for your needs, we recommend you research and compare loan interest rates, fees, repayment options, and eligibility requirements. If your private loan requires a self-certification form, please come by our office in the Crisman Administration and we will be happy to assist you with its completion. Nerdwallet.com is one website where you can compare private student loan companies.