Loans
Types of Student Loans
If you are looking for additional ways to pay for college, you can explore student loan options. Loans must be repaid, and educational loans generally have long-term repayment schedules, offer low-interest rates, often have provisions for deferring payments and may offer additional benefits related to financial need.
Before you borrow money for college, you should understand the specific conditions and requirements regarding disbursements, deferments, and repayment options. Loan terms are subject to change at any time.
The subsidized loan is a need-based loan for undergraduate students from the U.S. Department of Education. Eligibility for this loan is determined by the FAFSA. You must be enrolled in 6 or more credits to receive this loan. The interest for this loan does not accrue while you are enrolled in school at least half-time (6 credits) and during your six-month grace period. There is an origination fee of approximately 1% charged by the U.S. Department of Education, which is automatically deducted at the time of disbursement.
The unsubsidized loan is available for all eligible undergraduate and graduate students. Eligibility for this loan is determined by the FAFSA. You must be enrolled at least as a half time student (6 or more credits for undergraduate students and 5 or more graduate level credits for graduate students). The interest on this loan accrues on the account from the date of disbursement. Payments on the interest and principal are not required during periods of half-time enrollment and during your six-month grace period. There is an origination fee of approximately 1% charged by the U.S. Department of Education, which is automatically deducted at the time of disbursement.
The PLUS loan is available to graduate students or parents of dependent students. The eligibility for this loan is determined by the FAFSA and by the amount of financial aid received. The maximum PLUS loan amount you can receive is the cost of attendance minus any other financial aid received. This is a credit based loan, which has a secondary application that must be completed. If denied, you may re-apply with a co-signer. If the parent of a dependent student is denied, you may be eligible for additional unsubsidized loan funds.
How to Apply for Loans
To apply for Federal Direct Student Loans you must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to calculate your Student Aid Index (SAI) - the eligibility index used to determine your eligibility for federal and in some instances, state and institutional need-based student financial aid.
You will need to complete a new FAFSA application each year that you intend to receive financial aid. The FAFSA should be completed as soon as possible after October 1.
Complete Loan Requirements
If you have accepted Federal Direct Student Loans, you will also need to complete:
To complete this, you will need your FSA ID and password, which you established when you applied for the FAFSA and you complete them both at studentaid.gov. Once these are completed, UAS will be notified in 1-2 business days.
If you have accepted the PLUS loan, you will also need to complete:
- PLUS Loan Application
- Master Promissory Note
- PLUS Counseling*
The PLUS Loan Application constitutes your request for a PLUS Loan and authorizes the U.S. Department of Education (ED) to review your credit. If your loan request is credit denied, the ED will notify you and provide guidance on how to apply with a creditworthy endorser. To complete this, you will need your FSA ID and password, which you established when you applied for the FAFSA and you complete them both at studentaid.gov. Once these are completed, UAS will be notified in 1-2 business days.
*PLUS Counseling is only required when the borrowing parent has adverse credit history, but qualifies for the PLUS loan by documenting extenuating circumstances or obtaining an endorser. The U.S. Department of Education will inform the parent if he or she must complete this counseling as part of the application process.
Repayment Policy and Default Rate
Federal, state, and alternative loans are fund that are borrowed and must be repaid with interest and fees. All students borrowing federal student loans, which include Direct Stafford Loans and PLUS loans, must complete Entrance Counseling at studentaid.gov before the initial disbursement. A Master Promissory Note must also be completed before receiving the first payment of your loan. An active confirmation of that promissory note is required annually.
Upon graduation or the end of enrollment, students borrowing federal student loans must complete Exit Counseling at studentaid.gov.
The UAS Financial Aid Office monitors counseling and promissory notes. We receive daily reports and link status to your student account. Student status can be viewed on UAOnline. Students ceasing enrollment will receive email communication regarding exit counseling at the end of the semester.
The 2021 3-year Cohort Default Rate for UAS is 0.0%. [2021 default rate is published in 2024. The 2022 default rate will be published in 2025.]
An individual defaults on a Federal Direct Stafford student loan when a payment is not made for 270 days. Read more about federal student loan default.
A cohort default rate is the percentage of a school’s borrowers who enter repayment on certain federal loan programs during a federal fiscal year (October 1 to September 30) and default before the end of the third fiscal year.
UAS monitors delinquency and default status with the assistance of student loan servicers.