Graduate Program Federal Loan Options

Funds for the Federal Loan Programs, either in part or total, have been appropriated by the United States Congress and are administered by the University.

You must be a U.S. citizen or permanent resident to participate in the federal loan programs.

Subsidized Federal Direct Loan

  • Borrower: Students who demonstrate financial need.
  • Lender: William D. Ford Federal Direct Loan Program
  • Loan amount: Up to $8,500 annually, or the amount of need. (Whichever is less).
  • Application Process:
    • First-time Stafford borrowers: Complete an online entrance interview and then fill out a Master Promissory Note (MPN) at www.studentloans.gov as directed on the loan application instructions.
    • Returning Stafford borrowers: Return your award notice to the Chicago Office of Financial Aid via CAESAR accept/decline, identifying the amount you wish to borrow and then complete the Master Promissory Note (MPN) if you are directed to do so on the loan application instructions.
  • Interest Rate: Fixed 6.8%. The federal government pays interest while the student is enrolled at least half-time or is in deferment.
  • Fees: 0.5%*
  • Repayment: The borrower has up to 10 years to repay the loan under the standard repayment plan.
  • Take me to application instructions for the Federal Stafford Loan.

Unsubsidized Federal Direct Loan

  • Borrower: Students who have remaining unmet costs of attendance or who only have partial subsidized Stafford eligibility or do not qualify for the need-based Subsidized Federal Stafford Loan.
  • Lender: William D. Ford Federal Direct Loan Program
  • Loan amount: Up to $20,500 annually (minus any Subsidized Federal Stafford Loan funding).
    • First- and second-year medical school students may be eligible for an additional $20,000.
    • Third-year medical students may be eligible for an additional $26,667.
    • Fourth-year medical students may be eligible for an additional $24,444.
  • Application Process:
    • First-time Stafford borrowers: Complete your award notice, identifying the amount you wish to borrow. Complete an online entrance interview, then fill out a Master Promissory Note (MPN) at www.studentloans.gov.
    • Returning Stafford borrowers: Complete your award notice via CAESAR, identifying the amount you wish to borrow and then complete the Master Promissory Note (MPN) if directed on the loan application instructions. 
  • Interest Rate: Fixed 6.8%. Interest accrues while the student is in school and during loan deferment; the student doesn't need to pay the interest at this time, but the accumulated interest will be added to the principal and increase the amount to be repaid.
  • Fees: 0.5%*
  • Repayment: The borrower has up to 10 years to repay the loan under the standard repayment plan.
  • Take me to application instructions for the Federal Stafford Loan.

Federal Graduate PLUS Loan

  • Borrower: Graduate and professional students enrolled at least half-time. They do not need to demonstrate financial need. The borrower must not have adverse credit history (a credit check is required) without a co-signer.
  • Lender: William D. Ford Federal Direct Loan Program
  • Loan amount: Up to the Cost of Attendance less any other financial aid annually.
  • Application Process: Students should complete the PLUS Loan MPN at www.studentloans.gov. Borrowers with an averse credit history may apply for the loan with a co-signer (called an endorser) who does not have an adverse credit history.
  • Credit information:
    • Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:
      • Any current delinquency of 90 days or more
      • Any of the following within the preceding five years of the date of the credit check: default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, open collection
    • Recent changes in the law that governs the terms and conditions of Grad PLUS Loans establish a specific circumstance for certain Grad PLUS Loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a Grad PLUS Loan applicant may qualify for a Grad PLUS Loan based on extenuating circumstances if the applicant:
      • Has been or is delinquent for 180 days or less on mortgage loan payments, or on medical bill payments for the applicant or the applicant's family AND does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to Grad PLUS Loan applicants.
    • Borrowers with an averse credit history may apply for the loan with a co-signer (called an endorser) who does not have an adverse credit history.
  • Interest Rate: Fixed 7.9%
  • Fees: 2.5%**
  • Repayment: The borrower has a maximum of 25 years to repay the loan.
  • Take me to application instructions for the Federal Graduate PLUS Loan.

*Direct Loan Fee Rebate: The Subsidized and Unsubsidized Federal Direct Loans have a 1.0% origination fee and also offer a .5% rebate on the origination fee - resulting in a net fee of .5%, which will be deducted from the gross amount of the loan borrowed. Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent. If you fail to make 12 on-time monthly payments; however, a charge for the initial rebate will be added to the outstanding balance of the loan.

**The Federal Direct GradPLUS Loan has a 4% origination fee and also offers a 1.5% rebate on the origination fee - resulting in a net fee of 2.5%, which will be deducted from the gross amount of the loan borrowed. The 12 on-time payment rule also applies to the PLUS loan in order to keep the rebate.