Loans

Upon the receipt of a FAFSA and any other requested documents (depending on the student's class year and degree program), the University of Rochester assesses each student's eligibility for scholarships, grants, work-study, and federal loans in an effort to meet the student's demonstrated financial need. The information that follows relates solely to the loan programs the University of Rochester administers, as well as supplemental loan options available to students to help finance any remaining educational expenses.

Federal Student Loans

Eligibility

All students who are US citizens or permanent residents, matriculated, and enrolled at least half time (6 credit hours per term) in a degree-seeking program qualify for federal student loans. These loans are available to students of any age.

PLEASE NOTE: Audited courses and repeat courses do not count in determining enrollment status.

Federal student loans...

  • should be pursued before applying for supplemental loans
  • are the most beneficial loan options to students and their families as a whole
  • are requested by submitting the FAFSA (Free Application for Federal Student Assistance) and any other requested documents (depending on the student's class year and degree program)
  • consist of the Direct Subsidized Loan, Direct Unsubsidized Loan, and Perkins Loan

We invite you to review the loan options listed below and to click the link under each loan for more information.

William D. Ford Federal Direct Student Loans

  • These are fixed, low-interest, long-term loans for students' educational expenses.
  • These loans may be subsidized or unsubsidized.
    • A subsidized loan is awarded on the basis of financial need. You will not be charged any interest while you are in school (enrolled at least half time).
    • An unsubsidized loan does not depend on financial need. Interest is charged from the time the loan is disbursed until it is paid in full.

Additional Federal Direct Student Loan details

Federal Perkins Loan Program

The Perkins Loan is a university-based federal loan available only to undergraduate students who demonstrate high financial need. It has a fixed 5% interest rate and no origination fee is charged. Funds are limited, so priority is given to those students who complete their financial aid files on time and demonstrate the greatest financial need.

Additional Perkins Loan details

Additional Loan Options

Budget

We encourage all students and parents to borrow as little as possible. In the event that the student and/or parents wish to seek financing beyond what is offered in the student's financial aid package to resolve any remaining charges, it is recommended that the family consider paying for those remaining expenses from student work, current income, and assets first, before pursuing additional loans. Limiting the amount of additional borrowing a family undertakes, will help in reducing the total cost of the education.

For assistance in developing a family budget, please visit our Budgeting section.

Once the family determines how much they can pay from current income and assets and how much they need to borrow, the student and/or parents then must decide on the loan product to use. Families can choose a combination of educational loans to help meet college expenses. Although it is wise for families to explore all loan options (educational as well as certain consumer loans such as home equity) to assist with college expenses, we encourage families to investigate the educational loans listed below first. Educational loans have the benefits of:

  • more flexible deferment/forbearance options
  • longer repayment periods (resulting in lower monthly payments)
  • loan consolidation
  • more generous credit approval rates

Three additional educational loan options that students and parents can consider are the federal Parent Loan for Undergraduate Students (PLUS) (or Graduate PLUS for graduate students), certain state educational loans, and alternative (private) educational loans.

Federal PLUS Loan

Parent PLUS Loan

  • Parents can borrow a PLUS Loan to help pay for a student's education expenses as long as the student is:
    • considered to be a dependent
    • enrolled at least half time (at least 6 credit hours per term) and
    • matriculated in a degree-seeking program.
  • Credit approval is required.
  • Parents can borrow up to the cost of attendance less any financial aid the student is receiving.
  • The interest rate is a fixed 7.9%.

For more information, please go to Additional PLUS Loan Details.

To begin the application process for this loan, please use the form available under the "Parent" tab of Loan Requirements.

Graduate PLUS Loan

Available to graduate students, the terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS Loans. However, there are additional requirements and benefits:

  • Grad students are required to apply for their annual federal Direct Student Loans before applying for a Grad PLUS loan.
  • Students must be enrolled in a master's or Ph.D. program; certificate programs are excluded.
  • The loan is deferred while the student is enrolled at least half time (6 credit hours).

For more information, please go to Additional PLUS Loan Details.

To begin the application process for this loan, please use the forms available under the "Graduate Students" tab of Loan Requirements.

State Educational Loans

Based on the research we have conducted, the following states offer educational loans for their residents: Alaska, Maine, Massachusetts, New Jersey, South Carolina, and Vermont.

State educational loans...

  • are available to both undergraduate and graduate students (and possibly to parents and relatives), as long as the student is matriculated and enrolled at least half time in a degree program
  • are credit-based and offer interest rates and terms which are very competitive with PLUS loans and which are typically better than those of alternative loans
  • may have both fixed and variable interest rates available, depending on the state

To research these loan options, please go to State Educational Loans.

Alternative Loans

These educational loans are offered by several banks and educational lenders as a supplement to (not a replacement for) federal student loans. Alternative loans may also be referred to as private educational loans, as they are not affiliated with the federal or state loan programs. International students will need to have a US citizen or permanent resident cosign the loan.

Alternative loans...

  • feature variable interest rates based on the LIBOR or PRIME rate
  • may have additional fees of up to 9.5% of the requested loan amount
  • require credit approval
  • may be deferred
  • often allow a 6-month grace period before students begin repaying
  • must be accounted for in the student's aid package

Please note: the following types of students should speak to a financial aid counselor first before pursuing alternative loans:

  • non-matriculated
  • APNN
  • students seeking to pay past-due balances
  • students not meeting satisfactory academic progress
  • students denied on previous alternative loan applications due to poor credit

For more information and advice about choosing alternative loans, please see additional alternative loan details.

If you'd like to explore some facts related to the federal student loan industry, visit http://www.student-marketmeasure.com/facts.cfm.