Loan Programs

Direct Loans

Interest Rates & Loan Fees

Graduate PLUS Loans

Parent PLUS Loans

Private Loans

Servicers

Federal Direct Loans

Federal Direct Subsidized and Unsubsidized Loans

Federal Student Loan Basics for Students

Préstamos Federales para Estudiantes Conceptos Básicos para Estudiantes

Federal Student Loans (Direct Loans)
Federal student loans and parent loans are funded by the U.S. Department of Education and offer benefits not typically available with private loans, including fixed interest rates and flexible repayment options such as income-driven repayment plans.

Students may be eligible for Federal Direct Loans regardless of the school they attend. Loan amounts may vary based on financial need, class level, dependency status, and overall borrowing limits.

Types of Federal Direct Loans

The Federal Direct Loan Program includes two types of student loans:

Direct Subsidized Loans
These loans are based on financial need. The federal government pays the interest while the student is enrolled at least half-time, during the grace period, and during approved deferment periods.
Direct Unsubsidized Loans
These loans are not based on financial need. Interest begins accruing at the time of disbursement, and the borrower is responsible for all interest. Students may choose to pay interest while in school or allow it to capitalize (be added to the loan balance).

Repayment and Interest

Repayment of Direct Loans is automatically deferred while the student is enrolled at least half-time and during the six-month grace period after leaving school. Interest rates are fixed each year by federal law but may vary by award year.

How to Apply

Students who choose to borrow Federal Direct Loans must complete a Master Promissory Note (MPN), and first-time borrowers are required to complete Entrance Counseling. These steps can be completed at studentaid.gov.

For more information about your loan eligibility or borrowing options, please contact the Financial Aid Office.

(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.)

Annual and Aggregate Limits for Federal Direct Subsidized and Unsubsidized Loans

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

Why Get a Federal Student Loan?

Be a Responsible Borrower

Sea un prestatario responsable

Federal Direct Parent Loan for Undergraduate Students (PLUS)

Direct PLUS Loan Basics for Parents

Conceptos básicos sobre préstamos PLUS del Direct Loan Program para padres

Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan is available to parents of dependent undergraduate students to help cover educational expenses not met by other financial aid.

Loan Limits
Under current federal provisions, Parent PLUS Loans are limited to $20,000 per year per student, with a lifetime maximum of $65,000 per student.

Parents who previously borrowed Parent PLUS Loans for the student prior to these changes may be eligible to continue borrowing up to the student’s cost of attendance minus any other financial assistance received, subject to federal guidelines.

Eligibility and Application Process
All Parent PLUS Loans require a credit check through the U.S. Department of Education, and approval is based on the parent borrower’s credit history.

The PLUS Loan application is typically available beginning May 1 for the upcoming academic year. Parents can apply at studentaid.gov. If approved, the parent borrower must complete a PLUS Master Promissory Note (MPN). First-time borrowers must also complete Entrance Counseling.

Additional steps may be required by Eastern Oregon University before funds can be disbursed, including completing any required institutional forms and ensuring the student has accepted their financial aid offer in Mountie Hub.

Interest and Repayment
Interest begins accruing on Parent PLUS Loans at the time each disbursement is made. Repayment typically begins shortly after the final disbursement for the academic year.

Parents may request a deferment while the student is enrolled at least half-time, as well as for an additional six-month period after the student graduates or drops below half-time enrollment.

If a PLUS Loan is Denied
If a parent’s PLUS Loan application is denied due to credit, or if the parent is otherwise ineligible (for example, due to citizenship requirements), the student may become eligible for additional Federal Direct Unsubsidized Loan funding.

Refunds
If a credit balance remains on the student’s account after PLUS Loan funds are applied, the excess funds will be issued to the parent borrower, unless the parent authorizes the funds to be released to the student.

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan is available to graduate and professional students to help cover educational expenses not met by other financial aid.

Students may borrow up to the cost of attendance minus any other financial assistance received. This loan requires a credit check through the U.S. Department of Education. Students who are approved must complete a Graduate PLUS Loan application and a Master Promissory Note (MPN) at studentaid.gov.

Students are encouraged to borrow their maximum Federal Direct Unsubsidized Loan eligibility before applying for a Graduate PLUS Loan. Interest begins accruing at the time of disbursement, and repayment typically begins after the loan is fully disbursed, although deferment options may be available while enrolled at least half-time.

Important Update: Beginning with the 2026–2027 award year, Graduate PLUS Loans will no longer be available to new borrowers. Students may only continue to receive Graduate PLUS funding under a grandfather provision if they previously borrowed through the Direct Loan Program for their current graduate program prior to the start of the 2026–2027 award year.

Students who are not eligible for the Graduate PLUS Loan may wish to explore private education loan options through outside lenders. Private loans typically require a credit check and offer fewer repayment protections than federal loans. We encourage students to carefully compare lenders and fully review loan terms, interest rates, and borrower benefits before borrowing.

For additional information, please visit studentaid.gov or contact the Financial Aid Office.

Federal Direct Loan Interest Rates and Loan Fees

Federal Direct Loan Interest Rates

Loan Type	Student Level	2025-2026 Interest Rate
Subsidized	Undergraduate	6.39%, fixed
Unsubsidized	Undergraduate	6.39%, fixed
	Graduate	7.94%, fixed
PLUS	Parent	8.94%, fixed
	Graduate	8.94% fixed

^{For loans first disbursed between July 1, 2025 and June 30, 2026 inclusive.}

Loan Type	Student Level	2024-2025 Interest Rate
Subsidized	Undergraduate	6.53%, fixed
Unsubsidized	Undergraduate	6.53%, fixed
	Graduate	8.08%, fixed
PLUS	Parent	9.08%, fixed
	Graduate	9.08%, fixed

^{For loans first disbursed between July 1, 2024 and June 30, 2025 inclusive.}

How Interest Rates are Determined….

Federal Direct Loans have fixed interest rates that are set each year by the U.S. Department of Education. The interest rate for your loan depends on the type of loan and the academic year in which it is first disbursed.

Once your loan is disbursed, your interest rate is fixed for the life of the loan. However, interest rates may differ for loans borrowed in different academic years.

Federal law also sets maximum interest rates for each loan type.

See studentaid.gov for more information.

Federal Direct Loan Fees

Loan Type	Loan Fee
Direct Subsidized and Unsubsidized	1.057%
PLUS	4.228%

^{For loans first disbursed between October 1, 2023 and September 30, 2024 inclusive.}

Loan Type	Loan Fee
Direct Subsidized and Unsubsidized	1.057%
PLUS	4.228%

^{For loans first disbursed between October 1, 2022 and September 30, 2023 inclusive.}

Sequester-required loan fees and grant reductions for FY 24

Federal Loan Servicer Information

Please click here for information about the federal loan servicers.

Private (or alternative) Student Loans (i.e. not Federal)

When Should I Consider a Private Loan?

Private student loans may be an option to help cover educational expenses, but they should be considered only after all federal financial aid options have been exhausted.

You may consider a private loan if:

You have completed the FAFSA

You have accepted all available grants, scholarships, and work-study

You have borrowed your maximum eligible federal student loans

You still have remaining educational costs

What Are Private Loans?

Private student loans are offered by banks, credit unions, and other private lenders. These loans are not part of the federal student aid program and typically require a credit check and, in many cases, a cosigner.

Interest rates and repayment terms vary by lender and are based on creditworthiness. Unlike federal student loans, private loans generally offer fewer repayment options and limited borrower protections.

Important Considerations

Before borrowing a private loan, it is important to understand:

We strongly encourage you to carefully compare lenders, review all loan terms, and use the Private Loan Checklist to make an informed decision. If you have questions, please contact the Financial Aid Office for assistance. Download the Private Loan Checklist.

Compare Federal and Private Student Loans

Federal vs. Private Student Loans

Feature	Federal Student Loans	Private Student Loans
Lender	U.S. Department of Education	Banks, credit unions, or private lenders
Credit Check	Not required (most loans)	Usually required
Interest Rates	Fixed rates set by federal law	Fixed or variable, based on credit
Repayment Options	Flexible, including income-driven plans	Limited, varies by lender
Loan Forgiveness	May be available	Not available
Deferment/Forbearance	Widely available	Limited options
Cosigner Required	Not typically	Often required
Borrowing Limits	Set annually by law	Up to cost of attendance (varies)
Best Use	First option for most students	Last resort after federal aid

Important!

If you have lost your federal aid eligibility due to past unsatisfactory academic progress, you do have the option to request reinstatement of your eligibility by submitting a Satisfactory Academic Progress appeal. Appeal Forms are available online.

Choosing a Private Loan Lender

The Financial Aid Office at Eastern Oregon University does not endorse, recommend, or promote any lender selection for private loans.

The lenders and loan options presented in FastChoice include lenders who provided a loan at the school in the past.

FastChoice displays loan options for students and parents with clear, consistent information on a user-friendly website, and provides student education through borrowing essentials. FastChoice is free and fully supported by Great Lakes, a federal loan servicer.

You are free to choose any lender, including those not presented in FastChoice. If you choose a lender that is not presented, please contact the Financial Aid Office. Application processing will not be delayed unnecessarily if you choose a lender not presented.

Want to find your own lender?

Questions to ask lenders when searching for alternative or private student loans.

Do you lend to students at Eastern Oregon University?
Do I need to be a member of a credit union to apply at a credit union?
What are your repayment terms (e.g. 10 years, 15 years, up to 25 years)?
Do you have repayment incentives?
- Do you have interest rate reductions with automatic payments? What are they?
- Do you have interest rate reductions for on-time monthly payments? How many consecutive months?
- Do you defer principal and interest during the school year, pay only interest during school, or pay principal and interest immediately?
- Do you have flexible repayment options? What are they?
- Do you have deferment and forbearance options? What are they?
What are the loan amounts?
- Do you have an annual minimum?
- What is your aggregate maximum?
What is the interest rate? Is it fixed or variable?
How is the interest rate calculated?
Are there any fees?
- How are fees assessed?
- Can I get a loan without any fees?
How much will this loan cost in total?
Am I required to maintain satisfactory academic progress (SAP)?
Do I need to be at least a half-time student?
Do I need to have a credit worthy cosigner?
- None, with approved credit?
- Yes, depending on credit rating?
If I’m approved without a cosigner, can my interest rate be lowered if I get a cosigner?
Are there cosigner release benefits?
Will my alternative education loan be sold to another lender at any time?
- If my loan is sold, will any repayment incentives be honored by the purchasing lender?
What will my monthly payments be?
- Can they vary based upon loan amount and interest of loan?
- Is there a grace period?
Other things to consider when selecting a lender:
- What kind of upfront discounts do they offer?
- What can you afford?
  - Understand the ultimate cost of the loan over its lifetime. Compare annual percentage rates (APR) versus interest rates and fees to determine the real cost of the loan.
  - Be aware of what the monthly payments will be after graduation or leaving school and how that will affect your lifestyle after college.
- Get a sense of the lender’s customer service. You may be with them for a long time, and a lender with whom it is easier to work will make it more palatable.
- Beware of loan scams that focus on students.
- Find out what the “borrower benefits” really mean to you. How is each benefit achieved and how are they kept throughout repayment? What happens if you miss an “on time” payment?
- Are there forbearance or deferment options? Understand what additional cost these may have for you.
- How does the lender capitalize interest (for example, after repayment begins or quarterly)?
- Notify your lender of any change in address, name, or repayment problems—lack of communication is one of the first steps toward delinquency.
- Borrowers should always explore federal loan options first as alternative student loans may have higher interest rates and fees. Federal Student Aid can help you compare the two options.
- Please note that lenders offer better interest rates to borrowers who have a qualified cosigner.
- Law and graduate students may find that lenders have an alternative loan designed for their field of study.

Our officials are prohibited from accepting any financial or other benefits in exchange for displaying lenders and loan options in FastChoice. Prohibited activities include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution’s financial aid office; allowing lenders to place our institution’s name or logo on any of their products; and owning of lenders’ stock (for college officials who make financial decisions for our institution).

Your loan application will be forwarded to the EOU Financial Aid Office after your loan has been credit-approved and you have signed the promissory note. Your lender will provide you with current interest rates, processing fees and cosigner requirements. Contact the Financial Aid Office with questions regarding loan eligibility.

Self-Certification Information

Private loan borrowers should be aware of two important changes established by the Truth in Lending Act (TILA) 15 USC § 1638(e), both of which will affect the time required to apply for, and receive, a private student loan:

Self-Certification form: As of February 14^th, 2010, when a student applies for a private student loan the lender is required to collect a Self-Certification form from the student. This form will be available during the online process or the lender will mail a paper copy to the student. Please note: private loan funds will not be disbursed until the lender receives the Self-Certification form.
Delays in disbursement: After the lender has received the Self-Certification form from the student, and the loan approval from the EOU financial aid office, they will send the student a Final Disclosure which details the terms of the loan. The lender is required to wait up to 6 business days before disbursing the loan to the school. This delay was included in the TILA to give the student (or cosigner) time to cancel the loan after reviewing the terms of the Final Disclosure.

Financial Aid Office Code of Conduct

EOU Policy regarding Private Lenders and Preferential Prohibition thereof.

Code of Conduct for Financial Aid Professionals

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.
Information provided by the financial aid office is accurate, unbiased, and does not reflect preference arising from actual or potential personal gain.
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.
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.”
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, If you have lost your federal aid eligibility due toregional, 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.