Loan Options

*Except Students Whose Parents Cannot Borrow a PLUS Loan

**Whose Parents Cannot Borrow a PLUS Loan

• Undergraduate Dependent Students – $31,000 (no more than $23,000 can be subsidized).
• Undergraduate Independent Students – $57,500 (no more than $23,000 can be subsidized).
• Graduate and Professional Students –  $138,500 (no more than $65,500 can be subsidized).

The Office of Financial Aid will electronically transmit your loan eligibility for your federal direct loan to the federal government around July 1 of each year.

• You may reduce or reject your direct loan at any time in writing. Follow the instructions on your award letter.
• First-time borrowers are required to complete a  Master Promissory Note and the Direct Loan Entrance Interview.
• If you are an Undergraduate student, your loans will be disbursed after the add/drop period of each semester.
• Graduate student disbursements take place about three weeks into each semester.

First-time borrowers are required to complete  Direct Loan Entrance Counseling prior to receiving the first disbursement of a direct loan. Note: Parent borrowers may be required to complete counseling for PLUS loans.

This online counseling session will take approximately 30 minutes to complete. The borrower must complete the counseling session in one sitting in order for it to be recorded in the system.

You will need the following:

1. Verified FSA ID (www.studentaid.gov/fsa-id)
2. School Name
3. Financial Aid Offer
4. Breakdown of School’s Tuition and Fees

If you are a first-time borrower, a continuing NU student or a new transfer student, you will be required to sign your Direct Loan Master Promissory Note (MPN).

You will need/expect the following:

1. Verified FSA ID (www.studentaid.gov/fsa-id)
2. School Name
3. Permanent/Mailing Address
4. Contact Information
5. Reference Information

As of July 1, 2024, the interest rate for both the undergraduate Direct Subsidized Loan and Direct Unsubsidized Loan is fixed at 6.53%. The graduate Direct Unsubsidized Loan has a fixed interest rate of 8.08%. These interest rates are set by the federal government and are subject to change annually on July 1. There is a 1.057% origination fee for all subsidized and unsubsidized loans on or after October 1, 2024, and before October 1, 2025. For example, a loan for $3,500 for fall and spring semesters will net $3,463 ($3,500 less 1.057%) or $1,731 per semester.

Subsidized & Unsubsidized fixed at 6.53% interest (for undergraduates only)

Fixed 8.08% interest rate for Graduate Unsubsidized

Effective July 1, 2024, the interest rate for PLUS Loans is fixed at 9.08%. These interest rates are set by the federal government and are subject to change annually on July 1st. There is a 4.228% origination fee for all PLUS loans on or after October 1, 2024, and before October 1, 2025. Borrowing limits are determined by the cost of attendance less any financial aid.

Repayment Schedule at 6.28 Percent Fixed Interest Rate and 120 Number of Payments

Parents, or Graduate students, interested in borrowing through the PLUS Loan program are requested to wait until June 1, 2025, to apply.

Students must complete the Free Application for Federal Student Aid (FAFSA) before you apply for a PLUS loan.
You will then go to Studentaid.gov to begin the application process.

You will need the following:

1. Parent’s Verified FSA ID (www.studentaid.gov/fsa-id) (If applying for a Parent PLUS)
2. Requested Loan Amount (The amount you want to borrow)
3. School Name
4. Student Information (First Name, Middle Initial, Last Name; Social Security Number; Date of Birth; Permanent Address; Telephone Number)
5. Personal Information (Permanent and Mailing Address; U.S. Address; Telephone Number; Email Address)
6. Employer’s Information (Employer’s Name; Employer’s Address; Employer’s Telephone Number)

You are required to apply for a Direct PLUS Loan each year you need a new one. Repayment of your Direct PLUS Loan may be deferred until six months after the student ceases to be enrolled at least six hours per semester.
If a parent is denied a PLUS loan, the student will receive an additional unsubsidized loan

Borrowers have the right and ability to select the education loan provider of their choice and are not required to use any of the lenders on this list. Niagara receives no incentive or benefit from any lender on this list. All of the listed lenders provide loans for graduate and undergraduate students to provide funds beyond what federal programs can offer. Students can borrow up to cost of attendance minus financial aid. All loans are variable interest rates unless otherwise indicated.

• Niagara University does not automatically certify alternative loans until students have completed the FAFSA and their eligibility for Federal Direct Loans has been determined.
• It is usually in the student’s best interest to borrow from the Federal Direct Loan program first before borrowing an alternative loan. There is no cap on the interest rate for an alternative loan.
• If a student does not intend to complete a FAFSA and only wants an alternative loan, we must be notified in writing to determine your eligibility for the alternative loan.

• Lenders look at your credit score to determine if you are a good credit risk. Applying for more than one alternative loan will no longer negatively affect your credit score. It’s treated as a “soft hit” on your credit report for both the borrower and the co-signer if you are applying to multiple lenders.
• Be wary of any direct to consumer loans that do not require a school certification. Usually the interest rates on those loans are much higher. If a school certification is not required, you will be asked for a bill or a copy of your class schedule.
• The Financial Aid Office is required by federal regulations to make certain your aid does not exceed cost of attendance if the aid includes a loan. The cost of attendance elements are set by federal regulation.
• Important: Pursuant to Section 155 of the Higher Education Act of 1965, as amended, (HEA) and to satisfy the requirements of Section 128(e)(3) of the Truth in Lending Act, a lender must obtain a self-certification signed by the applicant before disbursing a private education loan. The school is required on request to provide this form or the required information only for students admitted or enrolled at the school. This form is available on our website or in the Financial Aid Office upon request.
• Defaulting on your loan could prevent you from owning a car or a house one day, and it is virtually impossible to eliminate student debt by declaring bankruptcy except in extreme cases of hardship.

• What is the interest rate?
• What is the cap on the interest rate?
• When and how often is the interest capitalized (added to the principal)?
• When does repayment begin?
• What are the penalties for missing a payment?
• Can you postpone payments after graduation; under what circumstances?
• Is there in-school deferment for graduate school; and is there a maximum time for in-school deferment?

Niagara University’s Preferred Lender List is developed by surveying lenders on an annual basis in order to provide a resource to assist our students as they research loan options. Lenders are asked to provide information regarding their benefits and services. This includes:

• Terms and conditions of the lender’s loan products (for example, interest rates, options for repayment length, etc.)
• Borrower benefits (for example, lender payment of fees, interest rate reductions for on-time payments)
• Previous lender service to Niagara University
• Previous lender service to borrowers
• Loan processing (for example, speed of loan approval and disbursement, error resolution)

The information is carefully reviewed by the Financial Aid Office at Niagara University annually to ensure that our students receive the best possible service and benefits associated with their private educational loans.

• For more information and to apply for privately sponsored alternative loan