Loan Programs

Miami University realizes that managing the cost of education is a challenge for many families. In addition to grants, scholarships, and federal work-study funds, several loan options are available. Loans may make it possible for you and/or your family to borrow now and defer repayment until after you leave the university.

Federal Perkins Loan - Eligible undergraduate students filing the Free Application for Federal Student Aid (FAFSA) will be considered for a Federal Perkins Loan. First priority is given to students who file their FAFSA application by Miami's priority filing deadline of February 15 for new freshmen and March 15 for returning students. A Federal Perkins Loan is a subsidized, deferred payment loan for students with exceptional high financial need. The interest rate is fixed at 5 percent. Students are required to begin making payments on their Perkins Loan nine (9) months after they graduate, leave school, or drop below half-time (6 credit hours) enrollment. The amount borrowed must be repaid within ten (10) years after the date repayment begins.

Federal Direct Stafford Subsidized and Unsubsidized Student Loans - Most students who file the Free Application for Federal Student Aid (FAFSA) are eligible for a William D. Ford Federal Direct Stafford Student Loan. Students may receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or a combination of both for the same academic year.

The Direct Subsidized Loans are awarded based on a student's financial need. With a Direct Subsidized Loan, the federal government pays any interest that accrues on the loan during authorized periods of deferment (postponement of repayment).

The Direct Unsubsidized Loans are awarded based on the cost of education less any other financial aid received. The federal government charges interest on the loan from the time the loan is disbursed until the loan is paid in full.

For 2013-2014 the annual borrowing limits (as defined by federal needs analysis formulas) for both the Direct Subsidized and Unsubsidized Loans were $5,500 ($3,500 may be in a subsidized loan) for freshmen, $6,500 ($4,500 may be in a subsidized loan) for sophomores, and $7,500 ($5,500 may be in a subsidized loan) for the remaining years of undergraduate study. Independent students may also qualify for an additional unsubsidized loan of $4,000 or $5,000 depending on their undergraduate status. Aggregate loan limits exist for both undergraduate and graduate study. The interest rate on both loans is fixed at the time the loan disburses. New loan interest rates for subsequent years are adjusted once a year on July 1. See miamioh.edu/loans for a link to the current interest rate.

Students are required to begin making payments on their Direct Loans six (6) months after they graduate, leave school, or drop below half-time (6 credit hours) enrollment.

Federal Direct PLUS Loans (for parents) - Federal Direct PLUS loans help parents pay their dependent student's educational expenses. Parents may borrow up to the cost of attendance minus any other financial aid that the student receives. The federal government charges interest from the date of the first disbursement until the loan is paid in full. The interest rate on the loan is fixed at the time the loan disburses. New loan interest rates are adjusted once a year on July 1. See miamioh.edu/loans for a link to the current interest rate. The parent is responsible for repayment of this loan. Parents have the option of beginning repayment either 60 days after the loan is fully disbursed, or six months after the student ceases to be enrolled on at least a half-time basis (6 credit hours). However, interest begins to accrue 60 days after full disbursement and will also accrue during loan deferment. A FAFSA must be submitted in order to apply for a PLUS loan. For information on applying, please see miamioh.edu/loans.

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