FEDERAL AND PRIVATE LOANS

Federal Direct Loan Programs are low-interest loans available to students and parents to help cover the cost of education after high school. These loans are provided by the U.S. Department of Education, not a bank or private lender. Loan options and eligibility will be discussed during the financial aid appointment. To learn more, visit studentaid.gov.

Federal Direct Subsidized Loan

This is a need-based student loan that must be repaid. The federal government covers the interest while you are enrolled at least half-time (6 credit hours or more per term).

Federal Direct Unsubsidized Loan

This is a student loan that must be repaid. Unlike subsidized loans, there is no requirement to demonstrate financial need. The amount you can borrow is determined by the college based on your cost of attendance, dependency status, and other financial aid received.

Federal Direct PLUS Loan

The Federal Direct Parent Loan for Undergraduate Students (PLUS) is a credit-based loan that must be repaid. It allows parents to borrow funds to cover any costs not already covered by the student’s financial aid package, up to the full cost of attendance, with no cumulative limit.

• Repayment Responsibility: The PLUS loan is the financial responsibility of the parent, not the student.
• Deferment Option: Payments can be deferred for six months after the student’s last date of attendance.

Private Loans

Also known as Alternative Education Loans, private education loans help bridge the gap between the actual cost of your education and the borrowing limits set by federal loan programs. These loans are offered by private lenders and do not require federal forms to complete.

Some families consider private education loans when federal loans do not provide enough funding or when they need more flexible repayment options. However, because federal student loans typically offer lower interest rates and better repayment terms, students should maximize their federal loan eligibility before turning to private loans.

The Modern currently works with two private lenders: PNC and College Ave. Additional details on private lending options will be discussed during the Financial Aid process.

Financial aid is available for those who qualify.