Federal Loans
The Federal Student Loan Program of the Federal Department of Education is known as the Federal Student Loan Program. William D. Ford Federal Direct Loan Program (Direct Loan). Under this program, the U.S. Department of Education is the lender.
A loan is money you borrow and must pay back with interest. If you apply for a federal student loan, make sure you know the terms and conditions of your loan. More information about federal student loan programs can be found at https://studentaid.gov.
As part of the requirements of the program, the institution will notify the National Student Loan Data System (NSLDS) from the Federal Department of Education information related to federal loans that you and/or your parents have received.
If you are a first-time student borrower, you may have to wait 30 days from the first day of your enrollment period (semester, quarter, etc.) to receive your first disbursement.
If you are a first-time Federal Direct Loan recipient you must complete an entrance interview prior to receiving your first loan disbursement. Similarly, if you are a graduate or professional student applying for a Federal Direct PLUS Loan for the first time, you must complete the entrance interview before receiving your first loan disbursement.
All first-time student loan applicants must complete an orientation regarding their loan duties and responsibilities, as well as receive information about their rights and repayment options.
Below are the available loans.
Direct Subsidized Loans
These are loans granted to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or vocational school.
Loan at the interest rate prevailing in the market at the time of application, but never more than 8.25%. It has an origination fee of 1% deducted from the original balance requested. The federal government pays interest on this loan while applicants are in school. Repayment begins six months after the cessation of studies, graduation or having less than a six-credit load. Currently, the maximum amount granted per year is $5,500 up to a cumulative limit of $23,500.
Direct Unsubsidized Loans
These are loans made to eligible undergraduate, graduate and professional students, but eligibility is not based on financial need.
It is intended to benefit high-income students who do not fully or partially qualify for the subsidized loan. The terms are the same as the Federal Subsidized Stafford Loan, except that the borrower is responsible for interest that accrues from the time it is disbursed. Currently, the maximum amount granted per year is $7,000 up to a cumulative limit of $34,500. The sum between the aggregate limits of subsidized and unsubsidized loans must never exceed $57,500.
Direct PLUS Loans
These are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for educational expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.
Parent Plus Loan: PLUS loans allow parents with good credit history to borrow money to pay for the educational expenses of each of their dependent children who have not yet completed their first bachelor's degree and are enrolled at least half-time. Parents with adverse credit history cannot receive PLUS loans unless they meet additional criteria. Legally married same-sex parents if they were married in a state where same-sex marriage is recognized, even if they reside in another state may be eligible to apply for a PLUS loan. The parent is responsible for repayment of the loan, even though the student is the beneficiary of the loan. To be eligible to receive a Federal Direct PLUS Loan, parents are required to undergo a credit check and complete an intake interview at the following website
Graduate Plus Loan (Graduate Plus): A student pursuing graduate-level studies (master's, doctoral) may apply for Graduate Plus. The amounts requested through this loan cannot exceed the cost of study, always considering any other assistance received.
Direct Consolidation Loans
Private Loans
Private Loans
Students who have reached the annual or cumulative (lifetime) limits established for Federal Direct Loans may consider applying for private educational loans offered by private financial institutions.
These loans can be used to cover the student's cost of education, after deducting all financial aid received. In no case may the loan amount exceed the cost of education determined by the institution.
Private student loans offer various alternatives for interest rates, fees, terms, conditions, and repayment options. Generally, they require the applicant to demonstrate creditworthiness or have a co-signer who meets the lender's established solvency requirements.
To facilitate access to information about these financing alternatives, the Inter American University of Puerto Rico provides its students with the platform ElmSelect, which collects information from various private lenders that have previously been used by students of the institution.
The inclusion of a lender on this platform does not constitute a recommendation, endorsement, or preference by the University. Students are free to select any private lender, whether or not they are listed on ElmSelect.
The academic unit will certify private loan applications from the lender selected by the student, provided they meet applicable institutional and regulatory requirements.
Through ElmSelect, students can explore, compare, and evaluate different private student loan options, including interest rates, fees, benefits, and repayment terms, in order to make an informed decision according to their financial needs.
Access the platform ElmSelect to learn about the available alternatives and compare private financing options.
Note: The Inter American University of Puerto Rico does not favor or recommend any particular private lender. The decision to apply for a private loan and select a lender rests solely with the student and, when applicable, their cosigner. Before accepting a private loan, it is recommended to exhaust all available federal, state, and institutional financial aid options..