Loans

The Federal Direct Unsubsidized Loan is the basic component of a student’s financial aid award offer. A student must be enrolled at least half-time to be eligible for federal loans. The interest rate on the Unsubsidized loan is fixed annually; a fee is assessed by the government when the loan is disbursed.  There are several repayment plans available. Direct Unsubsidized Loans are not need-based and are available to degree and certificate students at all academic levels. The amount awarded for the year cannot exceed the annual loan limit and is based on the student’s academic level and/or program.

To qualify for a Federal Direct Unsubsidized Loan, a student must:

• File the Free Application for Student Aid (FAFSA) each academic year;
• Accept or reject each Federal Direct Unsubsidized Loan offered; and
• Complete both a master promissory note (MPN) and an entrance counseling session (new borrowers).

Students are held to annual and lifetime aggregate maximums for Federal Direct Unsubsidized Loans. These amounts are based on a student’s academic level and/or program.

The Federal Direct Unsubsidized Loan is the basic component of a student’s financial aid award offer. A student must be enrolled at least half-time to be eligible for federal loans. The interest rate on the Unsubsidized loan is fixed annually; a fee is assessed by the government when the loan is disbursed.  There are several repayment plans available. Direct Unsubsidized Loans are not need-based and are available to degree and certificate students at all academic levels. The amount awarded for the year cannot exceed the annual loan limit and is based on the student’s academic level and/or program.

To qualify for a Federal Direct Unsubsidized Loan, a student must:

• File the Free Application for Student Aid (FAFSA) each academic year;
• Accept or reject each Federal Direct Unsubsidized Loan offered; and
• Complete both a master promissory note (MPN) and an entrance counseling session (new borrowers).

Students are held to annual and lifetime aggregate maximums for Federal Direct Unsubsidized Loans. These amounts are based on a student’s academic level and/or program.

The Federal Direct Graduate PLUS Loan (Grad PLUS) is available to graduate/professional degree-seeking students. Students are encouraged to expend annual Direct Unsubsidized Loan eligibility prior to borrowing a Grad PLUS loan; however, the Grad PLUS loan is a federal student loan option to help meet costs that exceed the annual or lifetime Unsubsidized loan limits.

A student must be enrolled at least half time to be eligible for the Grad PLUS loan. The interest rate on the Grad PLUS loan is fixed annually; a fee is assessed by the government when the loan is disbursed. There are several repayment plans available. Grad PLUS loans are not need-based but a credit-based loan application is required. The amount awarded for the year cannot exceed your specified Cost of Attendance, less all other aid. There is likewise no lifetime max on the Grad PLUS loan.

To qualify for a Federal Direct Grad PLUS Loan, a student must:

• File the Free Application for Student Aid (FAFSA) each academic year
• Complete a loan application with the U.S. federal government
• Complete a Master Promissory Note (MPN) and entrance counseling
• Should the student not meet the credit criteria, an endorser (cosigner) may be added; an endorser addendum must then also be on file with the government

Credit Criteria

Direct Graduate PLUS Loans require a credit check. Credit is evaluated by the Department of Education every time a student requests a new loan, unless they have a credit decision within the preceding 180 days (credit approval is valid for 180 days). If one or more of the items outlined in the credit requirements listed below applies to the student, he/she may want to obtain a credit report in advance of applying for a Direct Graduate PLUS Loan. Students are advised to correct negative items on their credit report as soon as possible.

According to the U.S. Department of Education, adverse credit history includes:

• Accounts with a total outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off during the two years preceding the date of the credit report.
• Default determination during the five years preceding the date of the credit report.
• Bankruptcy discharge during the five years preceding the date of the credit report.
• Repossession during the five years preceding the date of the credit report.
• Foreclosure during the five years preceding the date of the credit report.
• Charge-off/write-off of a federal student aid debt during the five years preceding the date of the credit report.
• Wage garnishment during the five years preceding the date of the credit report.
• Tax lien during the five years preceding the date of the credit report.

More details on adverse credit conditions can be found online.

Applying for a Direct Graduate PLUS Loan

Each student’s anticipated Direct Graduate PLUS Loan amount is provided on the financial aid package in Self-Service. Students must pass the Department of Education’s credit check to receive this type of federal student aid.

Credit checks will be automatically initiated by the federal Department of Education when the Office of Financial Aid processes a Graduate PLUS loan that a student accepts on their financial aid package.

The automated credit check process can be completed ONLY IF you have signed your financial aid offer letter in Financial Aid Self-Service, which you can access by logging into Self-Service through the Adler Connect “Quick Links” menu. Review your Checklist in Financial Aid Self-Service to complete all required steps.

If the credit check is not approved by the Department of Education, the Office of Financial Aid will send an email to your Adler email account alerting you and letting you know your options.

Credit Denial Options

Receiving a denial does not necessarily mean that students are unable to borrow the Graduate PLUS loan. There are additional ways to obtain the credit approval needed—either through an appeal or a cosigner.

First, it is important to learn why the PLUS application was declined. You should:

• Request a free credit history report.

A credit history report can be obtained for free each year from each of the 3 credit reporting agencies. You can space out your requests to obtain a credit history report every 4 months if wish to monitor your credit throughout the year. Note that this is a credit history report. It will not show your credit score.

• Review your credit history for any negative items.
• Review all accounts and lines of credit to ensure that they are ones that you have actually opened.
• Check the reported items and amounts for accuracy.
• Contact the Department of Education’s Student Loan Support Center.

Representatives can be reached at 1-800-557-7394 Monday through Friday from 8 AM to 11 PM Eastern time.

• Request information about what particular items on your credit history caused the denial.
• Ask about your appeal options (See the Can I Appeal the Credit Decision section below).

Contact your creditors to correct any inaccurate information or to discuss options to improve your credit history.

Can I Appeal the Credit Decision?

Applicants may appeal if incorrect information led to the credit denial or if there are extenuating circumstances. The Department of Education has a list of examples of adverse credit decisions and proof of extenuating circumstances here.

You can submit your appeal online through the Appeal Credit Decision link. You will need to provide a statement explaining your circumstances and include all documentation that supports your claim.

Submitting an appeal does not guarantee that there will be an approved credit decision. The Department of Education will review and contact you with appeal results.

How Can Someone Cosign on my Loan?

If you choose not to or are unable to successfully appeal the credit decision, you may be able to gain credit approval by adding a cosigner on your Graduate PLUS loan. Your cosigner can be anyone in good credit standing who is willing to help you borrow.

Your cosigner will need to complete the following:

1. Create an FSA ID account if they do not already have one.
2. Submit an Endorser’s Addendum through the Complete an Endorser Addendum link. It should include:
   1. Your Endorser Code

You (the student) would have received this Endorser Code via email from the Department of Education. If you do not have this email, contact the Department of Education’s Student Loan Support Center at 1-800-557-7394 and ask for the code.

2. The amount your cosigner is willing to endorse

Our office recommends that your cosigner enter an amount that is more than you think you will need. This is so the same loan can be increased if you decide you would like additional funds due to enrollment changes or increased living expenses. Requests to increase a PLUS loan beyond the endorsed amount may require that the endorser steps be completed again.

Note that cosigners who receive a denial due to adverse credit history are not eligible to appeal their credit decisions.

What Do I Do Next?

If you are able to gain credit approval through the appeal or endorser options, there are still some steps you (the student) will need to take:

1. Complete PLUS Counseling.

Click the Complete Loan Counseling link and the START button next to PLUS Credit Counseling.

2. Sign a new PLUS Master Promissory Note for graduate/professional students.

This is only necessary for students who have not borrowed a Graduate PLUS loan previously or for new, endorsed loans.

3. Keep the Office of Financial Aid informed.

Alert our office if you have added an endorser or you have received approval of your credit appeal from the Department of Education. Our office will need this information to continue processing your Graduate PLUS loan.

Making Adjustments to Direct Graduate PLUS Loan Amounts

Students who wish to adjust their Direct Graduate PLUS Loan amounts can do so through Financial Aid Self-Service. Adjustments typically require 4-6 business days processing time (from date of submission) unless the student’s credit is denied or further endorser paperwork must be processed.

Repayment of Federal Graduate PLUS Loans

Repayment of Federal Direct PLUS Loans begins as soon as the loan is fully disbursed, though students have the option of deferring repayment while the student is enrolled as at least a half-time student and for six months following graduation/withdrawal/dropping below half-time enrollment. Borrowers have the option of several repayment plans, including a standard, 10-year repayment or other extended repayment options based on time to repayment or the borrower’s income. These loans also allow for specific deferments, or time periods when the lender will temporarily suspend collection activity on the loan. Borrowers requiring a temporary postponement or partial reduction in monthly payment may request a forbearance in the case when a deferment is not available.​

Government student loans take into consideration many factors, including:

• income and assets
• tuition, mandatory fees, and book costs
• living expenses
• status: only Canadian students (including permanent residents, landed immigrants, and protected persons) are eligible to apply 

Alternative loans or lines of credit are credit-based private loans that the student applies for directly with the lender of their choice. These loans cannot be combined with Federal Direct Loans into a Federal Consolidation Loan following graduation. Alternative loans may be available to international students who have a U.S. Citizen or Permanent Resident co-borrower or borrowers who cannot file a FAFSA. Interest rates on alternative loans are typically not fixed and can vary by lender and by the borrower’s credit rating. More information about alternative private loans can be found online at finaid.org.

Students eligible for Federal Direct Loans are encouraged to explore federal loans first as many benefits might be unavailable through an alternative loan program.