Direct Loans are the primary federal loan for students. Direct Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (interest accrues while you are in school).
To receive a subsidized Direct Loan, you must be able to demonstrate financial need. All students, regardless of need, are eligible for the unsubsidized Direct Loan. Graduate students are eligible for the unsubsidized Direct Loan only. Direct subsidized and unsubsidized loans have a fixed interest rate of 4.99% for undergraduate students and 6.54% graduate students. a 1.057% disbursement fee is deducted from each disbursement before the loan funds are sent to the college. Repayment begins six months after you graduate or if you drop below half time enrollment. The standard repayment term is 10 years; however, it is possible to get access to alternate repayment terms (extended, graduated and income contingent repayment) by consolidating the loans.
Amount
- $5,500 (freshman)
- $6,500 (sophomores)
- $7,500 (juniors, seniors)
- $20,500 (graduates)
Eligibility
Full-time or part-time student
How to Apply
- Complete the FAFSA
- Complete the Online Federal Entrance Interview
- Complete the Direct Loan Master Promissory Note
The Federal Direct Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student's financial aid package, up the the full cost of attendance. PLUS Loans have a fixed interest rate of 7.54%. A disbursement fee of 4.228% is deducted from each disbursement of a PLUS Loan. Repayment begins 60 days after the loan is fully disbursed and extends up to 10 years or parent(s) may request a deferment if the student is enrolled in at least six credit hours.
Eligibility
A modest credit check is conducted to assess the parent's credit history. If a parent is denied a Federal PLUS loan due to adverse credit history, the parent may reapply with a credit-worthy co-borrower or appeal the denial with the Direct Loan Origination Center.
If the parent is denied a Federal PLUS loan due to adverse credit history, the parent may reapply with a credit-worthy co-borrower or appeal the denial with the Direct Loan Origination Center.
If the parent is denied a PLUS loan, the student becomes eligible for increased Stafford Loan limits.
Amount
- Up to the full cost of the student's education
Eligibility
Parents of full-time or part-time dependent students
How to Apply
- Complete a PLUS loan application
The Federal Direct Graduate Plus Loan for Graduate Students (Grad PLUS) lets graduate students borrow money to cover any costs not already covered by the student's financial aid package, up the the full cost of attendance. Grad Plus Loans have a fixed interest rate 7.54%. A 4.228% disbursement fee is deducted from each disbursement before the loan funds are sent to the college.
Eligibility
A modest credit check is conducted to assess the student's credit history. If a student is denied a Federal Graduate PLUS loan due to adverse credit history, the student may reapply with a credit-worthy-co-borrower or appeal the denial with the Direct Loan Origination Center.
Amount
- Up to the full cost of the student's education
Eligibility
Students enrolled in a graduate program
How to Apply
- Complete a Graduate Plus Loan
Private Education Loans, also known as Alternative Education Loans help bridge the gap between the actual cost of your education and the amount the government allows you to borrow in its programs.
The OCU Office of Financial Aid will work with any lender and servicing agency to process a private/alternative education loan for our students. It is important to note that this type of loan is typically more expensive than federal loans and should only be used when all other options, including federal loans, have been exhausted. The terms and conditions of alternative loans vary from lender to lender. We encourage all borrowers to carefully review and evaluate each program.
