Types of College Loans for Students and Parents
Students and parents have several options for borrowing money to help to pay for college.
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Federal Direct Student Loans
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Direct Loans are low-interest loans for eligible students to help cover the cost of attendance. Eligible students borrow directly from the U.S. Department of Education and are assigned to a loan servicer. Students must be enrolled for at least 6 credits to be eligible for Direct Student Loans.
How to Apply
- File a Free Application for Federal Student Aid (FAFSA)
- Accept all or a portion of the award on KnightWeb.
- If you accept a Student Direct Loan, you must complete the following steps:
Electronic Master Promissory Note
Subsidized vs. Unsubsidized Direct Loans
What's the difference between subsidized and unsubsidized direct loans?
Subsidized
A Direct Subsidized Loan is a federal student loan for which a borrower isn’t generally responsible for paying the interest while in an in-school, grace, or deferment period. Definition of subsidized from student aid site.
- Available to undergraduate students only.
- Must have financial need
- Interest does not accrue while in school at least half-time (6 credits or more) and/or during a period of deferment
Unsubsidized
An unsubsidized loan borrowed through the Direct Loan Program offers students a low, fixed interest rate and flexible repayment terms. It is not based on financial need. The borrower is responsible for paying all the accumulated interest, until the loan balance is paid off. Definition of unsubsidized from student aid site.
- Available to undergraduate and graduate students.
- Interest accrues (accumulates) on an unsubsidized loan from the time it's first paid out.
- Interest payments are recommended while you are in school, during a period of grace, deferment/forbearance.
- Interest will accrue and be capitalized if you choose not to pay the interest.
How much can I borrow in federal student loans?
See the table below. For more information, see borrowing limit information on the Federal Student Aid website.
Borrowing limits for dependent undergraduate students
Year in school (credits)
Annual maximum:
subsidized only
Annual maximum:
combined subsidized & unsubsidized
Freshman (0-29) $3,500
$5,500
Sophomore (30-59) $4,500
$6,500
Junior (60-89) $5,500
$7,500
Senior (90+) $5,500
$7,500
Borrowing limits for independent undergraduate students and dependent undergraduate students whose parents are denied the Federal Parent PLUS Loan
Year in school (credits)
Annual maximum:
subsidized only
Annual maximum:
combined subsidized & unsubsidized
Freshman (0-29) $3,500
$9,500
Sophomore (30-59) $4,500
$10,500
Junior (60-89) $5,500
$12,500
Senior (90+) $5,500
$12,500
Unsubsidized direct loan borrowing limit for graduate students
The annual maximum for unsubsidized direct loans (for loan periods beginning after July 1, 2012) is $20,500.
Aggregate (total) borrowing limits for federal subsidized & unsubsidized loans
Type of borrower Aggregate maximum:
subsidized
Aggregate maximum:
combined subsidized & unsubsidized
Dependent, undergraduate students $23,000
$31,000
Independent, undergraduate students & dependent undergraduate students whose parents are denied the Federal PLUS Loan $23,000
$57,500
Graduate students $65,500
$138,500
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Federal Parent Loans for Undergraduate Students (Parent PLUS)
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A PLUS loan is meant to assist families in covering costs beyond any student financial aid. PLUS Loans are borrowed through the Department of Education and assigned to a loan servicer.
- Parents of dependent, undergraduate students may apply for the Parent PLUS.
- The student must be eligible for federal student aid and enrolled for at least 6 credit hours.
- The loan is credit-based, therefore, the parent must not have adverse credit history.
Federal Direct PLUS Loan Basics for Parents (English) (Spanish)
How to Apply
- File a Free Application for Federal Student Aid (FAFSA)
- The parent must then log-in and apply on StudentAid.gov after May 1st for the next academic year. Remember that the PARENT is the borrower and STUDENT is the student.
- The parent must "Request a Direct PLUS Loan." (A credit decision is immediate.)
- If approved, complete the Master Promissory Note on the same site.
- If denied, three options are available:
- Request a credit appeal.
- Provide an endorser.
- Not pursue the PLUS Loan: The student may use additional Direct Unsubsidized Loan. Additional loan limits are available up to $6,000/academic year for 1st and 2nd year students (59 or less credit hours earned); and up to $7,000/academic year for 3rd and 4th year students (60 or more credit hours earned).
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Private Educational Loans
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Be advised that you should always consider federal loan options first. Federal vs. Private Loans
A Private Student Loan is meant to cover the cost of attendance beyond the student's federal, state and campus financial aid. Students may contact the lender of your choice. You may choose any lender. On ELMSelect.com, Geneseo displays a "Historical Lender" list that includes companies that our students have traditionally used
For a comparison of these lenders and/or to apply, please visit www.ELMSelect.com. Your application will be processed by the lender and SUNY Geneseo will be contacted if you are approved. We will certify the loan upon notification from the lender.
Application & Solicitation Disclosures are available from each individual lender website.