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Types of Financial Aid Loans
Direct Stafford
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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
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Parents of dependent students may apply for a Direct PLUS Loan to help pay their child’s education expenses.
Student Freedom Initiative
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Student Freedom Initiative is a nonprofit organization that helps students from Minority Serving Institutions achieve their life goals and professional aspirations.
Private Education Loan
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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 Stafford Loans, issued from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college. Eligible students borrow directly from the U.S. Department of Education through Morehouse College, an HBCU in Georgia. Direct Stafford Loans include the following Direct Subsidized Loans (loans for students with financial need) and Direct Unsubsidized Loans (loans for students without financial need). Both require the completion of the Free Application for Federal Student Aid(FAFSA).
The Direct Subsidized Loans are for students with financial need. Students are not charged interest while enrolled in school at least half-time and during grace and deferment periods.
The Direct Unsubsidized Loans accrues (accumulates) interest from the time it’s first paid out. You can pay the interest while you are in school, during grace periods, and deferment or forbearance periods, or you can allow it to accrue and be capitalized (added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay.
Interest Rates for Direct Loans First Disbursed on or After July 1, 2022, and Before July 1, 2023
LOAN TYPE BORROWER TYPE FIXED INTEREST RATE DIRECT SUBSIDIZED LOANS AND DIRECT UNSUBSIDIZED LOANS Undergraduate 4.99% DIRECT PLUS LOANS Parents and Graduate or Professional Students 7.54% Students receiving a Stafford Loan for the first time must complete a Master Promissory Note (MPN) online and Entrance Counseling. The MPN is a legal document in which the student promises to repay the loan and any accrued interest and fees to the Department. It also explains the terms and conditions of the loan. The Entrance Counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You will learn what a loans is, how interest works, your options for repayment, and how to avoid delinquency and default.
There are limits on the maximum amount you are eligible to receive each academic year (annual loan limit) and in total (aggregate loan limits). The actual amount you can borrow each year depends on your year in school, whether you are a dependent or independent student and other factors. Depending on your financial need, you may be eligible to receive a subsidized loan for an amount up to the annual subsidized loan borrowing limit for your grade level of study. If you have education expenses that have not been met by subsidized loans and other aid, you may also receive an unsubsidized loan as long as you don’t exceed the combined subsidized and unsubsidized annual loan limits.
Annual Maximum and Aggregate Limits
The following chart provides the annual maximum and aggregate loan limits for Subsidized and Unsubsidized Federal Direct Stafford Loan:
CLASSIFICATION DEPENDENT UNDERGRADUATE STUDENT INDEPENDENT UNDERGRADUATE STUDENT FRESHMEN 0-15 EARNED CREDITS $5,500—no more than $3,500 of this amount may be in subsizied loans. $4,000–Parent Plus denial $9,500—no more than $3,500 of this amount may be in subsidized loans SOPHOMORE 26-57 EARNED CREDITS $6,500—no more than $4,500 of this amount may be in subsidized loans. $4,000–Parent Plus denial $10,500–no more than $4,500 of this amount may be in subsidized loans JUNIOR/SENIOR 58-89+ EARNED CREDITS $7,500—no more than $5,500 of this amount may be in subisized loans. $5,000—Parent Plus denial $12,500—no more than $5,500 of this amount may be in subsidized loans AGGREGATE LIMIT $31,000—no more than $23,000 of this amount may be in subsidized loans $57,500—no more than $23,000 of this amount may be in subsidized loans -
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.
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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 Stafford Loans, issued from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college. Eligible students borrow directly from the U.S. Department of Education through Morehouse College, an HBCU in Georgia. Direct Stafford Loans include the following Direct Subsidized Loans (loans for students with financial need) and Direct Unsubsidized Loans (loans for students without financial need). Both require the completion of the Free Application for Federal Student Aid(FAFSA).
The Direct Subsidized Loans are for students with financial need. Students are not charged interest while enrolled in school at least half-time and during grace and deferment periods.
The Direct Unsubsidized Loans accrues (accumulates) interest from the time it’s first paid out. You can pay the interest while you are in school, during grace periods, and deferment or forbearance periods, or you can allow it to accrue and be capitalized (added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay.
Interest Rates for Direct Loans First Disbursed on or After July 1, 2022, and Before July 1, 2023
| LOAN TYPE | BORROWER TYPE | FIXED INTEREST RATE |
|---|---|---|
| DIRECT SUBSIDIZED LOANS AND DIRECT UNSUBSIDIZED LOANS | Undergraduate | 4.99% |
| DIRECT PLUS LOANS | Parents and Graduate or Professional Students | 7.54% |
Students receiving a Stafford Loan for the first time must complete a Master Promissory Note (MPN) online and Entrance Counseling. The MPN is a legal document in which the student promises to repay the loan and any accrued interest and fees to the Department. It also explains the terms and conditions of the loan. The Entrance Counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You will learn what a loans is, how interest works, your options for repayment, and how to avoid delinquency and default.
There are limits on the maximum amount you are eligible to receive each academic year (annual loan limit) and in total (aggregate loan limits). The actual amount you can borrow each year depends on your year in school, whether you are a dependent or independent student and other factors. Depending on your financial need, you may be eligible to receive a subsidized loan for an amount up to the annual subsidized loan borrowing limit for your grade level of study. If you have education expenses that have not been met by subsidized loans and other aid, you may also receive an unsubsidized loan as long as you don’t exceed the combined subsidized and unsubsidized annual loan limits.
Annual Maximum and Aggregate Limits
The following chart provides the annual maximum and aggregate loan limits for Subsidized and Unsubsidized Federal Direct Stafford Loan:
| CLASSIFICATION | DEPENDENT UNDERGRADUATE STUDENT | INDEPENDENT UNDERGRADUATE STUDENT |
|---|---|---|
| FRESHMEN 0-15 EARNED CREDITS | $5,500—no more than $3,500 of this amount may be in subsizied loans. $4,000–Parent Plus denial | $9,500—no more than $3,500 of this amount may be in subsidized loans |
| SOPHOMORE 26-57 EARNED CREDITS | $6,500—no more than $4,500 of this amount may be in subsidized loans. $4,000–Parent Plus denial | $10,500–no more than $4,500 of this amount may be in subsidized loans |
| JUNIOR/SENIOR 58-89+ EARNED CREDITS | $7,500—no more than $5,500 of this amount may be in subisized loans. $5,000—Parent Plus denial | $12,500—no more than $5,500 of this amount may be in subsidized loans |
| AGGREGATE LIMIT | $31,000—no more than $23,000 of this amount may be in subsidized loans | $57,500—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