Loan Programs

Financial Aid Office at EOU
Loans Are Financial Aid That Must Be Repaid

Federal Direct Subsidized and Unsubsidized Loans

Your total Direct Loan eligibility is the same at every institution you attend. It may vary in content based on your estimated need at each school’s, but you always have the same, maximum eligibility at each school.

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Direct Unsubsidized Loan and Direct Stafford Loan mean the exact same thing!

The Federal Direct Loan Program has both a need based, subsidized component and a non-need based, unsubsidized component.

The Direct Subsidized Loan is a loan based on financial need for which the federal government generally pays the interest that accrues while the borrower is in an in-school, grace, or deferment status.
The Direct Unsubsidized Loan is a loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan. This type of loan is not based on financial need.

Federal Student Loan Basics for Students (PDF)
Préstamos Federales para Estudiantes Conceptos Básicos para Estudiantes (PDF)
Direct Loan interest and principal payments are automatically deferred during school (while students are attending at least half-time) and through the student’s six month grace period. Direct Loan interest rates are fixed each year by law and may vary from award year to award year. Direct Loan award amounts are based on a student’s class level. Students who elect to borrow under the Federal Direct Loan program must complete a Master Promissory Note (MPN) and first-time borrowers must complete Entrance Counseling. For award years after 2021-2022, the Annual Student Loan Acknowledgment must also be completed each year prior to the first disbursement of a loan. To complete your Direct Loan MPN, Entrance Counseling and ASLA, go to:

(NOTE: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period.)

Why Get a Federal Student Loan?

Why Get a Federal Student Loan? (PDF)
¿Por qué me conviene obtener un préstamo federal para estudiantes? (PDF)
Be a Responsible Borrower: Plan Ahead and Graduate With Less Debt (PDF)
Sea un prestatario responsable: Planee por adelantado y gradúese con menos deuda (PDF)

Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Federal Direct PLUS Loan is available to parents of undergraduate students. Parents may borrow the difference between the student’s cost of attendance and other financial aid. Parents who want to borrow the PLUS loan must complete an EOU PLUS Loan Acceptance Form and a pre-approval credit check. Once the parent borrower is approved, the parent borrower can complete a PLUS Master Promissory Note (MPN). Generally, repayment begins after the last disbursement for the academic year and interest begins accruing immediately with each disbursement. Students who have had a parent denied during the PLUS approval process, or who do not meet the eligibility requirements (e.g. noncitizen parents) are eligible to borrow additional funding in the Federal Stafford Loan program (submit a Loan Revision Request form). Any credit balances on a students account resulting from receipt of PLUS loan funds will be mailed directly to the parent borrower.

Federal Student Loans Direct PLUS Loan Basics for Parents (PDF)
Conceptos básicos sobre préstamos PLUS del Direct Loan Program para padres (PDF)

Direct PLUS Loans and Adverse Credit (PDF)

Trying to get a PLUS Loan? If you’ve been placed in collection within the past two years, you’re considered to have an adverse credit history. You still may be able to qualify for a loan if you follow these steps:

Federal Direct Graduate PLUS

The Federal Graduate PLUS loan is offered to students enrolled in a Graduate or Professional program.  Students who borrow in the Graduate PLUS program must complete a credit check and pre-approval process.  Students who have been approved must then complete a Graduate PLUS Master Promissory Note (MPN).  Students should borrow their full Subsidized and Unsubsidized Stafford Loan annual maximums before applying for the Federal Graduate PLUS loan.  For additional questions on this program please contact the Financial Aid Office or visit:

Grad PLUS Information from the Department of Education 🔗

Federal Direct Loan and PLUS Interest Rates

Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013 have fixed interest rates that are determined in accordance with formulas specified in sections 455(b)(8)(A) through (C) of the Higher Education Act of 1965, as amended (HEA).

The interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type and, for Direct Unsubsidized Loans, whether the loan was made to an undergraduate or graduate student. Loans first disbursed during different 12-month periods may have different interest rates, but the rate determined for any loan is a fixed interest rate for the life of the loan.

For each loan type, the calculated interest rate may not exceed a maximum rate specified in the HEA. The maximum interest rates are 8.25% for Direct Subsidized Loans and Direct Unsubsidized Loans made to undergraduate students, 9.50% for Direct Unsubsidized Loans made to graduate and professional students, and 10.50% for Direct PLUS Loans made to parents of dependent undergraduate students or to graduate or professional students.

… for 2022-2023

Loan Type Student Level Loans Disbursed Between July 1, 2021 and June 30, 2022
Subsidized Undergraduate 4.99%, fixed interest rate
Unsubsidized Undergraduate 4.99%, fixed interest rate
Graduate 6.54%, fixed interest rate
PLUS Parent PLUS (Undergraduate) 7.54%, fixed interest rate
Graduate PLUS 7.54%, fixed interest rate

… for 2021-2022

Loan Type Student Level Loans Disbursed Between July 1, 2020 and June 30, 2021
Subsidized Undergraduate 3.73%, fixed interest rate
Unsubsidized Undergraduate 3.73%, fixed interest rate
Graduate 5.28%, fixed interest rate
PLUS Parent PLUS (Undergraduate) 6.28%, fixed interest rate
Graduate PLUS 6.28%, fixed interest rate

To find the interest rate for your federal student loans, log in to “My Federal Student Aid,” available at

Federal Direct Loan and PLUS Loan Fees

Loan Type Loans Disbursed on or after October 1, 2021, and before October 1, 2022 Loans Disbursed on or after October 1, 2020, and before October 1, 2021
Subsidized & Unsubsidized 1.057% 1.057%
PLUS 4.228% 4.228%
Sequester-required loan fees and grant reductions for FY 22 🔗

Annual and Aggregate Limits for Subsidized and Unsubsidized Loans

Page 3-98 of Chapter 5 of Volume 3 of the FSA HB, Dec 2018 (PDF)

Private Loan (Non-Federal)

So you filled out the FAFSA form and got accepted to college. Congrats! 🎉 Your school will likely include student loans as part of your financial aid package. Just make sure you know the basics about these two types of loans before you sign to accept either of them.

What are the different ways to pay for college or graduate school?


Generally, there are two types of student loans—federal and private.

Federal student loans and federal parent loans: These loans are funded by the federal government with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.

Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans.

Please click here for more information on applying for a private, or alternative student loan.

FastChoice Handout

Federal Loan Servicer Information

Please click here for information about the federal loan servicers.

Code of Conduct for Financial Aid Professionals
  1. No action will be taken by financial aid staff that is for their personal benefit or could be perceived to be a conflict of interest.
    • Employees within the financial aid office will not award aid to themselves or their immediate family members. Staff will reserve this task to an institutionally designated person, to avoid the appearance of a conflict of interest.
    • The University has no preferred lending agreement with any lender of private educational loans and does not maintain a preferred lender list. Neither the University nor any employee shall enter into any revenue-sharing arrangement with any lender or accept offers of funds for private loans to students in exchange for providing concessions or promises to the lender for a specific number of loans, a specified loan volume, or a preferred lender arrangement.
    • A borrower’s choice of a lender will not be denied, impeded, or unnecessarily delayed by the institution. Borrowers will not be auto-assigned to any particular lender.
    • No amount of cash, gift, or benefit in excess of a de minimis amount shall be accepted by a financial aid staff member from any financial aid applicant (or his/her family), or from any entity doing business with or seeking to do business with the institution (including service on advisory committees or boards beyond reimbursement for reasonable expenses directly associated with such service).
    • No compensation may be accepted for any type of consulting arrangement or contract to provide services to or on behalf of a lender relating to education loans.
  2. Information provided by the financial aid office is accurate, unbiased, and does not reflect preference arising from actual or potential personal gain.
  3. Institutional award notifications and/or other institutionally provided materials shall include the following:
    • A breakdown of individual components of the institution’s Cost of Attendance.
    • Clear identification of each award, indicating type of aid, i.e. gift aid (grant, scholarship), work, or loan.
    • Standard terminology and definitions.
    • Renewal requirements for each award.
  4. All required consumer information is displayed in a prominent location on the institutional web site(s) and in any printed materials, easily identified and found, and labeled as “Consumer Information.”
  5. Financial aid professionals will disclose to their institution any involvement, interest in, or potential conflict of interest with any entity with which the institution has a business relationship.

Statement of Ethical Principles

The primary goal of the institutional financial aid professional is to help students achieve their educational goals by providing appropriate financial support and resources. To this end, this statement provides that the financial aid professional shall:

Advocate for students
  • Remain aware of issues affecting students and continually advocate for their interests at the institutional, state and federal levels.
  • Support federal, state and institutional efforts to encourage students to aspire to and plan for education beyond high school.
Manifest the highest level of integrity
  • Commit to the highest level of ethical behavior and refrain from conflict of interest or the perception thereof.
  • Deal with others honestly and fairly, abiding by our commitments and always acting in a manner that merits the trust and confidence others have placed in us.
  • Protect the privacy of individual student financial records.
  • Promote the free expression of ideas and opinions, and foster respect for diverse viewpoints within the profession.
Support student access and success.
  • Commit to removing financial barriers for those who want to pursue postsecondary learning and support each student admitted to our institution.
  • Without charge, assist students in applying for financial aid funds.
  • Provide services and apply principles that do not discriminate on the basis of race, gender, ethnicity, sexual orientation, religion, disability, age, or economic status.
  • Understand the need for financial education and commit to educate students and families on how to responsibly manage expenses and debt.
Comply with federal and state laws
  • Adhere to all applicable laws and regulations governing federal, state, and institutional financial aid programs.
  • Actively participate in ongoing professional development and continuing education programs to ensure ample understanding of statutes, regulations, and best practices governing the financial aid programs.
  • Encourage colleagues to participate in the financial aid professional associations available to them at the state, regional, or national level and offer assistance to other aid professionals as needed.
Strive for transparency and clarity
  • Provide our students and parents with the information they need to make good decisions about attending and paying for college.
  • Educate students and families through quality information that is consumer-tested when possible. This includes (but is not limited to) transparency and full disclosure on award notices.
  • Ensure equity by applying all need-analysis formulas consistently across the institution’s full population of student financial aid applicants.
  • Inform institutions, students, and parents of any changes in financial aid programs that could affect their student aid eligibility.
Protect the privacy of financial aid applicants
  • Ensure that student and parent private information provided to the financial aid office by financial aid applicants is protected in accordance with all state and federal statutes and regulations, including FERPA and the Higher Education Act, Section 483(a)(3)(E) (20 U.S.C. 1090).
  • Protect the information on the FAFSA from inappropriate use by ensuring that this information is only used for the application, award, and administration of aid awarded under Title IV of the Higher Education Act, state aid, or aid awarded by eligible institutions.
  • Note: The Higher Education Act does not allow us to share data from your FAFSA directly with certain outside agencies, even with your written permission.

*This was adopted in part from the National Association of Student Financial Aid Administrators’ Statement of Ethical Principles and Code of Conduct for Financial Aid Professionals. The obligations in this Code of Conduct are in addition to any requirements imposed by state or federal laws, or Eastern Oregon University policies.