Student Loans

A Federal Direct Subsidized Loan is offered as a need-based loan after grants, scholarships and other resources are subtracted or up to the annual maximum loan limit, whichever is lower. It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program. The federal government pays the interest on the loan until your repayment begins.  Fees of up to 1.057% will be charged and deducted proportionately from each loan disbursement.

For undergraduate students, the interest rate for Federal Direct Subsidized loans disbursed between July 1, 2025 - June 30, 2026 is 6.39%. 

Federal Direct Subsidized loans are not available for graduate/professional students. 

To Apply for a Federal Direct Subsidized Loan

To apply for a Federal Direct Subsidized Loan, the student must complete the FAFSA. If the student is eligible for a Federal Direct Subsidized Loan, the offer amount will be posted on the student’s electronic Offer Letter on SalukiNet.

A student is eligible to be considered for the Federal Direct Subsidized Loan if they:

• have a valid SAI on file in the Financial Aid Office.
• are enrolled in an eligible program on at least a half-time basis.
• are making satisfactory academic progress.
• have not already borrowed the maximum aggregate Federal Direct Loan amount.
• are not ineligible for other reasons.

To Accept/Reduce/Decline a Federal Direct Subsidized Loan

The student must accept or decline a Federal Direct Subsidized Loan on the electronic Offer Letter on SalukiNet by selecting “Accept” or “Decline” in the dropdown box on the Offer Letter Accept/Decline Offers page.  The student can reduce the loan amount by selecting “Accept” in the dropdown box and entering a lower amount in the “Partial Accept” field.  If the student wishes to request loan changes, they should use the “Request Changes” on the Offer Letter Information Request page of the electronic Offer Letter.

The first time a loan is accepted, the student must complete a Electronic Master Promissory Note. The loan will then be credited to the student's SIUC account, divided into two payments for the academic year. The student will also be required to participate in an Entrance Loan Counseling session.

All or part of the loan can be canceled within 90 days of the date the school notifies the student that the loan has been credited to their account.  Loan funds will first be used to pay for tuition, fees, food and housing. If funds remain after these charges have been paid, the student will receive the remaining funds by check or direct deposit. 

A Federal Direct Unsubsidized Loan is offered as a non-need-based loan after all other need- based loans, grants, scholarships and other resources are subtracted or up to the annual maximum loan limit (see below), whichever is lower.  It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program.  The federal government does not pay the interest on the loan. Fees of up to 1.057% will be charged and deducted proportionately from each loan disbursement.

• For undergraduate students, the interest rate for Federal Direct Unsubsidized loans disbursed between July 1, 2025 - June 30, 2026 is 6.39%.
• For graduate/professional students, the interest rate for Federal Direct Unsubsidized loans disbursed between July 1, 2025 - June 30, 2026 is 7.94%.

To Apply for a Federal Direct Unsubsidized Loan

To apply for a Federal Direct Unsubsidized Loan, the student must complete the FAFSA. If the student is eligible for a Federal Direct Unsubsidized Loan, the offer amount will be posted on the students’ electronic Offer Letter on SalukiNet.

A student is eligible to be considered for the Federal Direct Unsubsidized Stafford Loan if they:

• have a valid SAI on file in the Financial Aid Office.
• are enrolled in an eligible program on at least a half-time basis.
• have been offered all subsidized loan eligibility.
• are making satisfactory academic progress.
• have not already borrowed the maximum aggregate Federal Direct Loan amount.
• are not ineligible for other reasons.

To Accept/Reduce/Decline a Federal Direct Unsubsidized Loan

The student must accept or decline a Federal Direct Unsubsidized Loan on the electronic Offer Letter on SalukiNet by selecting “Accept” or “Decline” in the dropdown box on the Offer Letter Accept/Decline Offers page.  The student can reduce the loan amount by selecting “Accept” in the dropdown box and entering a lower amount in the “Partial Accept” field.  If the student wishes to request loan changes, they should use the “Request Changes” on the Offer Letter Information Request page of the electronic Offer Letter.

The first time a loan is accepted, the student must complete a Electronic Master Promissory Note. The loan will then be credited to the student's SIUC account, divided into two payments for the academic year. The student will also be required to participate in an Entrance Loan Counseling session.

All or part of the loan can be canceled within 90 days of the date the school notifies the student that the loan has been credited to their account. Loan funds will first be used to pay for tuition, fees, food and housing. If funds remain after these charges have been paid, the student will receive the remaining funds by check or direct deposit.

Federal Direct Graduate PLUS Loans are loans offered to graduate and professional students with good credit history. A student may borrow up to the total of the Estimated Cost of Attendance less resources and other financial aid. Graduate PLUS loans are not subsidized by the Federal government, and as a result, interest will be charged from the time the loan is disbursed. A credit check is required before the loan can be approved. Should the student’s credit rating not warrant approval, a credit worthy endorser (co-signed) can be obtained by the borrower.  

The interest rate is a fixed interest rate of 8.94% and is charged on the loan from the time the loan funds are disbursed until it is paid in full. Fees of up to 4.228% will be charged for Federal Direct Grad PLUS Loans, and deducted proportionately from each loan disbursement to the student's account.

To Apply for a Federal Direct Graduate PLUS Loan

To apply for a Federal Direct Graduate PLUS Loan, the student must complete and submit a FAFSA. A student is eligible to be considered for the Federal Direct Grad PLUS Loan if they:

• have a valid SAI on file in the Financial Aid Office.
• are a regular degree-seeking student enrolled in an eligible program on at least a half-time basis.
• have not been offered other financial aid up to the cost of attendance.
• are making satisfactory academic progress.
• are not considered as an Unclassified graduate students.

Graduate Students can request a Federal Direct Grad PLUS loan by completing a SIU Graduate PLUS Loan Application electronically at studentaid.gov.

The first time a loan is accepted, the student must complete and sign an Electronic Grad PLUS Master Promissory Note and complete Entrance Counseling session.The loan will then be credited to the student's SIUC account, divided into two payments for the academic year. All or part of the loan can be canceled within 90 days of the date the school notifies the student that the loan has been credited to their account. Loan funds will first be used to pay for tuition, fees, food and housing. If funds remain after these charges have been paid, the student will receive the remaining funds by check or direct deposit.

Repayment of Federal Direct Grad PLUS Loans

Repayment begins within 60 days of the final loan disbursement during the academic year.  Principal and interest payments may be deferred if the student meets the deferment requirements. The Federal Direct Grad PLUS Loan will be automatically deferred if the student is enrolled at least half-time in a degree seeking program.

To learn more about available deferments and how to apply for deferment status, please contact the U.S. Department of Education’s processing center at 800-848-0979.

Compare Loans

We encourage students to research the interest rates, credit check requirements, conditions, terms, and repayment of Grad PLUS Loans with that of private alternative loans. General differences:

• The credit check for the Grad PLUS Loan will not be as stringent as that of most private loans, which often look at debt to income ratio.
• Grad PLUS Loans can be consolidated with other Federal Direct Loans (subsidized/unsubsidized), which allows students to have only one payment after graduation (private loans cannot be consolidated with federal loans).
• Interest rates tend to be lower than many private loans.
• The Grad PLUS has different requirements regarding deferment during in-school and summer terms.

The Federal Direct Parent Loan for Undergraduate Students (PLUS) is available to parents of dependent students to help pay the educational expenses for their undergraduate student enrolled in at least 6 credit hours per semester. This loan is not based on financial need.  The parents pay the costs for this loan and interest charges and repayment begin upon disbursement.  The Federal Direct PLUS Loan is borrowed from the U.S. Department of Education. SIU Carbondale is responsible for determining student and parent eligibility, offering the loan, ensuring a Master Promissory Note is completed by the borrower, and disbursing federal funds to the borrower. The U.S. Department of Education contracts a servicer to handle credit checks, loan approval and collection.

A parent may borrow up to the total of the Estimated Cost of Attendance less resources and all other financial aid received by the student.  A FAFSA must be filed to receive a Federal Direct Parent PLUS Loan.  

The interest rate is a fixed interest rate of 8.94% and is charged on the loan from the time the loan funds are disbursed until it is paid in full.  An origination fee of 4.228% of the loan amount is deducted from the Federal Direct PLUS Loan proceeds for the federal government. Parents are notified of this fee at the time of the loan approval and loan disbursement amounts reflect the deduction of this loan fee.  If the borrower fails to make 12 consecutive on-time payments, they will be billed an additional 1.5% fee.

Eligibility

The parent borrower and their student must meet the following criteria to receive a Federal Direct PLUS Loan.

The student and parent borrower must:

• Be U.S. Citizens or other eligible status (permanent resident).
• Not owe a defaulted student loan or a federal grant repayment.
• Meet other requirements as applicable.

The student must:

• Be in compliance with the SIU Carbondale Satisfactory Academic Progress Policies.
• Be enrolled at least half-time. (Audited courses are not eligible to determine enrollment status.)
• Have filed a FAFSA and listed SIU Carbondale as a school choice.

The parent borrower must:

• Not have an adverse credit history.

Deadlines

Federal Direct PLUS Loan applications and all required documentation must be received at the Financial Aid Office by the following dates for loans to be processed:

Loan Period and Deadline Date

• Fall Only - November 1
• Fall/Spring - April 1
• Spring Only - April 1
• Fall/Spring/Summer - July 1
• Spring/Summer - July 1
• Summer Only - July 1

To Apply for a Federal Direct Parent Loan for Undergraduate Students (PLUS)

• Completion of the FAFSA is required for a parent to receive a PLUS Loan.
• Parent must complete a Direct PLUS Loan Request by signing into studentaid.gov website, (parent signs in as the borrower) clicking on the “Request a Direct PLUS” link, and then click on the “Parent PLUS Loan “link. 
• Parent must complete a Federal Direct PLUS electronic Master Promissory Note (PLUS MPN) by signing into studentaid.gov website, click on the “Complete Master Promissory” link, and then click on the “Parent PLUS” link. 
• The Federal Direct PLUS Electronic Master Promissory Note (PLUS MPN) signed by the parent is valid for 10 years one a PLUS loan is taken out (unless the parent applies and was approved with an endorser); however, a Federal Direct PLUS Loan Request must be made each academic year and each summer award period to be considered. 

SIU Carbondale disburses an approved PLUS loan in semester installments. Federal Direct PLUS Loans are credited to the student's University account to pay all charges first. If the credit exceeds charges, a refund check is processed and mailed to either the student or parent as indicated on the Application for a Federal Direct PLUS Loan.  Parents have the right to cancel all or a portion of their PLUS loans by contacting the Financial Aid Office within 90 days after disbursement.     

If Federal Direct Parent Loan for Undergraduate Students (PLUS) is Denied

If a Federal Direct Parent PLUS Loan Application is denied, the borrower may obtain a qualified endorser or it may be possible for a student to borrow an additional amount of unsubsidized loan.  In that case, the dependent student annual maximum allowable loan limit will be replaced by the independent student maximum allowable loan limit at the same class level.  If the application is denied, the student should access their Financial Aid Offer Letter, select "Request Changes" and ask to be re-packaged for additional unsubsidized loan if the box was not checked on the PLUS Application form.

Repayment of Federal PLUS Loans

Repayment begins within 60 days of the final loan disbursement during the academic year. Principal and interest payments may be deferred if the borrower meets deferment requirements. In-school deferments may be requested by parent borrowers provided the student is enrolled at least half-time in a degree seeking program.

Private educational loans are available from private lenders and offer additional financial assistance to you if you have exhausted all other sources of funding for your education. These programs are meant to supplement federal and state aid when the Cost of Attendance (COA) is not fully covered by these programs.   Most students can meet their educational costs by a combination of offered financial aid and family resources.   It is only when all resources do not meet educational costs that a student should consider a private loan. A student should exhaust all of their Federal Direct Stafford loan eligibility before considering private loans, since interest rates and fees are usually lower for federal loans.

There are circumstances, however, when the processing of private loans is reasonable. This may include students enrolled in a high cost program such as Study Abroad, Aviation Flight, or Physician Assistant, as well as out-of-state students and students who have exhausted their annual limits for the Federal loan programs. Students may also have additional educational expenses approved under Professional Judgment that may not be met with the Federal Direct loans. In some cases the parent may prefer that the loan be in the name of the student, rather than utilizing a PLUS loan.

Applying for Private Loans

Click here for historical lender list.  Valuable information about the private loan process and interest rate calculations is provided and should be read carefully. The Financial Aid Office will process the private loan requested by the student, however FAO will not certify private loans for an amount that exceeds the cost of attendance minus other financial aid or that require funding or financial guarantees by the University.

New Truth In Lending Act (TILA) regulations include additional processing steps and require a three day waiting period after the disclosures have been completed before the loan can be disbursed.  Depending on the lender, this can add an additional 3 to 7 days from the time of application to disbursement.

After the loan has been certified, the lender will send the private loan funds to SIU by an Electronic Fund Transfer. The Financial Aid Office will make a final assessment of the students' eligibility. If the student remains eligible, the loan funds will be transferred to the SIU Bursar's Office. Private loan funds will be credited to the student's SIU account. If there is a credit balance after the loan is credited to the account, a refund check will be processed no earlier than the week before the start of the semester.

The Short Term Loan program provides temporary funds to students supplies, living expenses, medical expenses, unexpected emergencies, and other expenses. In addition, Short Term Loans may be provided to students who are experiencing delays in receiving their financial aid funds. A Short Term Loan cannot be used to pay University charges.

If the eligibility criteria are met, one Short Term Loan will be approved per semester, unless there are extenuating circumstances. Students do not have to apply for or be receiving financial aid to apply for a Short Term Loan. Students will not be approved for a Short Term Loan if they have a credit balance on their University Account.  

Loans must be repaid within 30 days or subject to late fees.

Eligibility Criteria

• Undergraduate students must be registered for six (6) or more credit hours (Fall, Spring or Summer);
• Graduate/professional students must be registered for six (6) or more credit hours during Fall and Spring semesters and three (3) or more credit hours during the Summer term.
• Students must not have a delinquent balance on a prior Short Term Loan.
• Must be making Satisfactory Academic Progress.
• Must have financial aid that would cover the amount of current university charges and the Short Term Loan.
• Students who do not repay Short Term Loans by the due date indicated on the application/promissory note may lose eligibility to receive future Short Term Loans.

Students with extenuating circumstances may be approved for higher loan limits or additional Short Term Loans during a semester if the student provides sufficient reason(s) and the request is approved by a Financial Aid Office staff member. The Director and Associate Director may also make professional judgment exceptions to the eligibility criteria (listed above). International students should contact The Center for International Education for additional information about short term loans. 

When a student graduates, withdraws or stops attending on at least a half-time basis, a six-month grace period begins before the student must start repaying the Federal Direct Stafford Loans. At that time, Exit Loan Counseling is required to explain the student's debt and repayment options.

At the end of the grace period, the student must begin repaying the loans directly to their Direct Loan Servicer.   The U.S. Department of Education (ED) uses several loan servicers to handle the billing and other services on loans for the William D. Ford Federal Direct Loan Program. Learn about loan servicers and how to determine who your loan servicer is here: Loan Servicer. The monthly payment amount will depend on the size of the debt and the Repayment Plan. (See Repaying Your Loan for an explanation of Repayment Plans and examples of monthly repayment amounts.) The student will receive repayment information from their Direct Loan Servicer and be notified of the date repayment begins. However, even if this information isn't received, the student is still responsible for beginning repayment at the end of the grace period.

To find out more about repayment options contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).  If you would like the exact payment amount of your Direct Loans you can find it out by contacting your loan servicer. 

Loan payments can sometimes be postponed (i.e. a deferment or forebearance may be granted) for specific reasons. A deferment allows the borrower to temporarily postpone payments on a loan. (See Repaying Your Loan for information on available deferments for Direct Stafford Loans.)

Students borrowing a Federal Direct Loan, including subsidized and/or unsubsidized, are subject to maximum allowable loan limits. There are limits of which you need to be aware.

• Annual Maximum Loan Limit: Restricts the total amount of Direct Student Loans that may be borrowed annually.
• Aggregate Maximum Loan Limit: Restricts the amount of Direct Student Loans that may be borrowed over a student's college career.
• The combined total that you may borrow through Federal Direct Subsidized and/or Unsubsidized Loans cannot exceed your Cost of Attendance (COA) minus other financial aid or the maximum annual amount allowable by law, whichever is less.
• The maximum annual amount you can borrow in the form of a Federal Direct Subsidized and/or Unsubsidized Loan(s) is determined by your class level and dependency status.

Annual Maximum Loan Limits

Aggregate Maximum Loan Limits

 The higher maximum loan for independent students reflects a combination of Federal Direct Subsidized and Unsubsidized Loans. The annual maximum Subsidized Loan eligibility is limited to the dependent eligibility for each class level.

Weighing the Facts:

Federal Student Loans Vs. Private Student Loans

Table of comparisons between Federal and private loans.

Federal & Private Benefits

• In-school deferments
• $2,500 Federal tax benefit
• No prepayment penalty
• Repayment grace period

The Terms

• Lender: Resource that provides loans and sets all lending requirements, including interest rates & fees
• Fixed interest: Rates that never change for the lifespan of the loan
• Variable interest: Rates change based on benchmark rate
• Grace period: Set period of time after leaving school before a loan enters repayment, often 6 - 9 months
• Prepayment: Payments made prior to end of grace period, ultimately reducing total interest
• Principal: Original loan balance, including origination fees
• Credit score: Calculated from an individual's payment history, amounts owed, length of credit history, new credit & types of credit used
• Deferment: An agreement between the lender and the borrower to delay payment for a period of time, generally interest continues to accrue
• Financial need: Process used by the federal government to determine aid offers, calculated by subtracting a student's Student Aid Index (SAI) from their cost of attendance

Sources

• www.studentaid.gov
• www.nces.ed.gov
• www.finaid.org