Educational Loans
Educational loans are a type of financial aid that must be repaid, typically with interest. Loans have varying fees, interest rates, repayment terms, and/or borrower protections. To be considered for federal loans, the Free Application for Federal Student Aid (FAFSA) must be completed each year and the student must be enrolled at least half-time. The dollar amount of these loans may be based on federal limits, year in school, dependency status, cost of attendance, and other financial aid received. Families should borrow only what is needed to finance their student's education. Visit Your Financial Success to learn more about responsible borrowing.
Miami realizes that managing the cost of education is a challenge for most families. In addition to grants, scholarships, and federal work-study funds, several loan options are available.
| Type | Available To | Other Info |
|---|---|---|
| Federal Direct Subsidized Student Loan | Undergraduate U.S. citizens and permanent residents; must demonstrate financial need. | Fixed interest rate; repayment begins six months after a student leaves school or drops below half-time enrollment; interest does not accrue while in school. |
| Federal Direct Unsubsidized Student Loan | U.S. citizens and permanent residents; no financial need requirement. | Fixed interest rate; starts six months after a student leaves school or drops below half-time enrollment; interest accrues while in school. |
| Federal Direct Graduate PLUS Loan | Graduate/professional students. Based upon satisfactory credit check. | Fixed interest rate; loan repayment begins 60 days after the entire loan is disbursed. Students may request deferral to postpone repayment until six months after the student leaves school or drops below half-time enrollment; interest accrues while in school. |
| Federal Direct Parent PLUS Loan (PLUS) | Parents of dependent students. Based upon satisfactory credit check. | Fixed interest rate; loan repayment begins 60 days after the entire loan is disbursed. Parents may request deferral to postpone repayment until six months after the student leaves school or drops below half-time enrollment; interest accrues while in school. |
| Private Loan | Undergraduates and graduates; parents of undergraduates. | Loan programs vary; visit the FastChoice website or each specific lender's website. |
Smart Borrowing Tips
- Understand Loan Details and Terms: please read and understand your student loan Entrance Counseling and MPN details before accepting your loan(s).
- Borrow Only What You Need: reduce education costs by only borrowing what you need to cover direct costs (e.g., tuition, fees) billed to you by Miami.
- Be Aware of Loan Costs: total loan costs include principal (the amount you borrow), fees and interest, which all must be repaid.
- Borrow Only What You Can Repay: your student loan payment should not be more than 8-10% of your future monthly income.
First-time Borrowers
First-time loan borrowers must complete the following at studentloans.gov:
- Entrance Counseling, which is a mandatory online counseling session you must complete before you can access the loan funds.
- Master Promissory Note (MPN), which is your promise to repay your loan(s), fees, and interest.
Student Loan Code of Conduct
The guiding principles for ensuring the integrity of the student aid process and the ethical conduct of employees in regard to student loan practices are provided in the Miami University Student Loan Code of Conduct.