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Types of Financial Aid Loans
Direct Stafford
Learn More
Direct Stafford Loans, offered through the U.S. Department of Education, are low-interest loans available to eligible students to help cover education costs at Morehouse College. There are two types of Direct Stafford Loans: Subsidized and ...
Parents PLUS Loan
Learn More
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child’s education expenses.
Student Freedom Initiative
Learn More
Student Freedom Initiative is a nonprofit organization that helps students from Minority Serving Institutions achieve their life goals and professional aspirations.
Private Education Loan
Learn More
Morehouse College uses FastChoice, an online private loan selection tool which allows students and families to easily compare private loan lenders, customize private loan selection and disclosure.
How Financial Aid Loans Work
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Direct Stafford Loans
Direct Stafford
Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at Morehouse College. (You might see Direct Subsidized Loans and Direct Unsubsidized Loans referred to as Stafford Loans or Direct Stafford Loans, but these aren’t the official loan names.)
Differences Between Direct Subsidized Loans and Direct Unsubsidized Loans
Quick Overview of Direct Subsidized Loans
Who can get Direct Subsidized Loans?
Direct Subsidized Loans are available to undergraduate students with financial need.
How much can you borrow?
Your school determines the amount you can borrow, and the amount may not exceed your financial need.
Who will pay the interest?
The U.S. Department of Education pays the interest on a Direct Subsidized Loan
- while you’re in school at least half-time,
- for the first six months after you leave school (referred to as a grace period*), and
- during a period of deferment (a postponement of loan payments).
Quick Overview of Direct Unsubsidized Loans
Who can get Direct Unsubsidized Loans?
Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
How much can you borrow?
Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
Who will pay the interest?
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
Steps to Accept you Direct Subsidized and/or Unsubsidized Loan
You can view your Financial Aid Award via BannerWeb to determine if you’ve been awarded Federal Direct Loans. If so, you can also accept those awards there as well.
After accepting your loan(s) via BannerWeb, you will be required to:
- complete entrance counseling, a tool to ensure you understand your obligation to repay the loan; and
- sign a loan contract called a Master Promissory Note, agreeing to the terms of the loan.
Morehouse College will receive the electronic confirmation of these requirements.
Loan Amount Limits
Your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year. However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on
- what year you are in school and
- whether you are a dependent or independent student.
If you are a dependent student whose parents are not eligible for a Direct PLUS Loan, you may be able to receive additional Direct Unsubsidized Loan funds.
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
Year
Dependent Students (except students whose parents are unable to obtain PLUS Loans)
Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
First-Year Undergraduate Annual Loan Limit
$5,500-No more than $3,500 of this amount may be in subsidized loans.
$9,500-No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit
$6,500-No more than $4,500 of this amount may be in subsidized loans.
$10,500-No more than $4,500 of this amount may be in subsidized loans.
Third Year and Beyond Undergraduate Annual Loan Limit
$7,500 per year-No more than $5,500 of this amount may be in subsidized loans.
$12,500-No more than $5,500 of this amount may be in subsidized loans.
Graduate or Professional Student Annual Loan Limit
Not Applicable (all graduate and professional degree students are considered independent).
$20,500 (unsubsidized only).
Subsidized and Unsubsidized Aggregate Loan Limit
$31,000-No more than $23,000 of this amount may be in subsidized loans.
$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans.
$138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study. -
Parents PLUS Loan
Parents PLUS
How to Apply
- Complete the Direct PLUS Loan Application for Parents online.
- Check School Requirements: Most schools require online applications, but some have unique processes. Use the school list on the Direct Loan Program site to confirm requirements or contact your child’s school’s financial aid office for details.
- Important: Your child must complete the FAFSA form before you apply.
Interest Rates & Fees
- Interest Rate: 9.08% (fixed) for loans disbursed between July 1, 2024, and July 1, 2025.
- Loan Fee: 4.228% of the loan amount, deducted proportionately.
Loan Limits
You can borrow up to the cost of attendance (set by the school) minus other financial aid received.Repayment Options
- Deferment: Request to delay payments while your child is enrolled at least half-time and for six months after leaving school. Interest will accrue during deferment.
- Immediate Repayment: If no deferment is requested, payments begin after the loan is fully disbursed.
Adverse Credit Solutions:
- Option 1: Apply with an endorser (co-signer) who has no adverse credit.
- Option 2: Prove extenuating circumstances to the U.S. Department of Education.
Both options require credit counseling for borrowers.
Learn more about what to do if denied a PLUS loan due to credit issues.
-
Student Freedom Initiative
Student Freedom Initiative
Morehouse College students looking for alternatives to traditional loan options and enhanced educational experience may find just that in the Student Freedom Initiative. The Student Freedom Initiative is a nonprofit organization dedicated to helping students from Minority Serving Institutions reach their life and career goals. It provides low-interest loans for sophomore, junior, and senior STEM majors. The program, launched in the fall of 2021, initially focuses on students from Historically Black Colleges and Universities (HBCU Colleges) majoring in Science, Technology, Engineering and Mathematics (STEM) subjects.
Student Freedom Initiative aims to help HBCU students escape the crushing burden of unmanageable student loan debt, which often plagues many African American students. What’s more, the initiative catalyzes freedom in higher education and life choices, by providing students with tools and resources that enhance their educational experiences and pave the way for better career paths. Some of these key aspects of the program include:
- An income-contingent funding alternative
- Tutoring, mentoring, and other support services
- Internships
- Targeted institutional capacity-building support
Direct Stafford
Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at Morehouse College. (You might see Direct Subsidized Loans and Direct Unsubsidized Loans referred to as Stafford Loans or Direct Stafford Loans, but these aren’t the official loan names.)
Differences Between Direct Subsidized Loans and Direct Unsubsidized Loans
Quick Overview of Direct Subsidized Loans
Who can get Direct Subsidized Loans?
Direct Subsidized Loans are available to undergraduate students with financial need.
How much can you borrow?
Your school determines the amount you can borrow, and the amount may not exceed your financial need.
Who will pay the interest?
The U.S. Department of Education pays the interest on a Direct Subsidized Loan
- while you’re in school at least half-time,
- for the first six months after you leave school (referred to as a grace period*), and
- during a period of deferment (a postponement of loan payments).
Quick Overview of Direct Unsubsidized Loans
Who can get Direct Unsubsidized Loans?
Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
How much can you borrow?
Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
Who will pay the interest?
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
Steps to Accept you Direct Subsidized and/or Unsubsidized Loan
You can view your Financial Aid Award via BannerWeb to determine if you’ve been awarded Federal Direct Loans. If so, you can also accept those awards there as well.
After accepting your loan(s) via BannerWeb, you will be required to:
- complete entrance counseling, a tool to ensure you understand your obligation to repay the loan; and
- sign a loan contract called a Master Promissory Note, agreeing to the terms of the loan.
Morehouse College will receive the electronic confirmation of these requirements.
Loan Amount Limits
Your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year. However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on
- what year you are in school and
- whether you are a dependent or independent student.
If you are a dependent student whose parents are not eligible for a Direct PLUS Loan, you may be able to receive additional Direct Unsubsidized Loan funds.
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
|
Year |
Dependent Students (except students whose parents are unable to obtain PLUS Loans) |
Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|
First-Year Undergraduate Annual Loan Limit |
$5,500-No more than $3,500 of this amount may be in subsidized loans. |
$9,500-No more than $3,500 of this amount may be in subsidized loans. |
|
Second-Year Undergraduate Annual Loan Limit |
$6,500-No more than $4,500 of this amount may be in subsidized loans. |
$10,500-No more than $4,500 of this amount may be in subsidized loans. |
|
Third Year and Beyond Undergraduate Annual Loan Limit |
$7,500 per year-No more than $5,500 of this amount may be in subsidized loans. |
$12,500-No more than $5,500 of this amount may be in subsidized loans. |
|
Graduate or Professional Student Annual Loan Limit |
Not Applicable (all graduate and professional degree students are considered independent). |
$20,500 (unsubsidized only). |
|
Subsidized and Unsubsidized Aggregate Loan Limit |
$31,000-No more than $23,000 of this amount may be in subsidized loans. |
$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. |
Parents PLUS
How to Apply
- Complete the Direct PLUS Loan Application for Parents online.
- Check School Requirements: Most schools require online applications, but some have unique processes. Use the school list on the Direct Loan Program site to confirm requirements or contact your child’s school’s financial aid office for details.
- Important: Your child must complete the FAFSA form before you apply.
Interest Rates & Fees
- Interest Rate: 9.08% (fixed) for loans disbursed between July 1, 2024, and July 1, 2025.
- Loan Fee: 4.228% of the loan amount, deducted proportionately.
Loan Limits
You can borrow up to the cost of attendance (set by the school) minus other financial aid received.
Repayment Options
- Deferment: Request to delay payments while your child is enrolled at least half-time and for six months after leaving school. Interest will accrue during deferment.
- Immediate Repayment: If no deferment is requested, payments begin after the loan is fully disbursed.
Adverse Credit Solutions:
- Option 1: Apply with an endorser (co-signer) who has no adverse credit.
- Option 2: Prove extenuating circumstances to the U.S. Department of Education.
Both options require credit counseling for borrowers.
Learn more about what to do if denied a PLUS loan due to credit issues.
Student Freedom Initiative
Morehouse College students looking for alternatives to traditional loan options and enhanced educational experience may find just that in the Student Freedom Initiative. The Student Freedom Initiative is a nonprofit organization dedicated to helping students from Minority Serving Institutions reach their life and career goals. It provides low-interest loans for sophomore, junior, and senior STEM majors. The program, launched in the fall of 2021, initially focuses on students from Historically Black Colleges and Universities (HBCU Colleges) majoring in Science, Technology, Engineering and Mathematics (STEM) subjects.
Student Freedom Initiative aims to help HBCU students escape the crushing burden of unmanageable student loan debt, which often plagues many African American students. What’s more, the initiative catalyzes freedom in higher education and life choices, by providing students with tools and resources that enhance their educational experiences and pave the way for better career paths. Some of these key aspects of the program include:
- An income-contingent funding alternative
- Tutoring, mentoring, and other support services
- Internships
- Targeted institutional capacity-building support