An education loan is a form of financial aid that must be repaid, with interest. Education loans for graduate students come in two major categories: federal loans and alternative loans (also called private student loans).
The ultimate responsibility of financing an education lies with the student. Students who finance their education with student loans must understand that with the acceptance of the loan comes the responsibility of prompt and full repayment.
McDaniel College stresses this responsibility not only because loan repayment is ethically correct, but also because loan default could eventually lead to loss of financial aid to future students.
The student must be accepted into a degree seeking Master's program and taking at least six credits per semester.
Loans available to Graduate Students
Federal Direct Unsubsidized Loans
$20,500 borrowing limit per year
Lifetime borrowing limit of $138,500 (including both Unsubsidized and Subsidized Ford Federal Direct Loans for both undergraduate and graduate education)
6% annual interest rate
The borrower is responsible for interest that accrues while s/he is in school. While a student is in school, grace period or period of deferment, the student may make interest payments or request the interest to be accrued.
1.069% loan origination fee will be deducted from the face value of the loan
No aggregate or annual limits on this loan. The limit is dictated by the student’s cost of attendance.
7% annual interest rate
This loan is unsubsidized. The borrower is responsible for interest that accrues while s/he is in school.
There is no grace period for this loan.
The loan goes into repayment (and begins accumulating interest) 60 days after the second disbursement, but is deferrable throughout attendance of at least half-time study at a post-secondary institution.
4.292% loan fee will be deducted from the face value of the loan
The loan is disbursed typically once a semester.
Loan is contingent on a credit check
This loan is used by students who need funds to cover the unmet cost of attendance or who exhausted their aggregate limit for Direct loans. Please contact the Financial Aid Office at firstname.lastname@example.org if you interested in this federal loan.
You can read more about the Direct Grad Plus Loan on the Federal Student Aid website.
Private and Alternative Loans
Private student loans are made by private lenders to students and may require credit-worthy cosigners. These loans may be more expensive than Federal Grad PLUS loans and students should first maximize any eligibility under the federal loan programs. Private loan fees and interest rates vary among lenders. All lenders will review the borrower's and cosigner’s credit history. McDaniel College does not endorse any specific lender or group of lenders.