Loans and Grants

Federal Direct Student Loans: What You Need to Know

Subsidized vs. Unsubsidized: What’s the difference?

• Subsidized: The government pays your interest while you’re in school (at least half-time) and during your grace period. This is based on financial need.
• Unsubsidized: You are responsible for all interest from the moment the loan is paid out.
• How to Qualify: Your FAFSA determines which one you get.

How to Apply

• File your FAFSA: This is the first step every academic year. Visit studentaid.gov.
• Complete the Essentials: Head to studentaid.gov to sign your Master Promissory Note (MPN) and complete Entrance Counseling.

Note: You usually only need to sign the MPN once during your time here.

Eligibility & Deadlines

• No credit check required.
• Enrollment: You must be enrolled at least half-time (6 credits for undergrads; 3 credits for grad/doc) to receive your funds.
• Deadline: All steps (accepting the loan, MPN, and counseling) must be finished by the last day of the semester.

Rates and Limits

• Interest & Fees: Rates change annually based on when the loan is first paid out. View current rates
• Loan Limits: How much you can borrow depends on your grade level and total earned credits. View loan limits

Repayment & Counseling

• When do I pay? Repayment begins 6 months after you graduate, withdraw, or drop below half-time enrollment.
• Plan ahead: You have 10–25 years to pay it back, but you can pay early without any penalties.
• Mandatory Counseling: You must complete Entrance Counseling before your first loan arrives and Exit Counseling before you graduate or leave the university.

Want to change your loan amount? You can request to reduce or cancel your loan at any time!

The Federal Direct Parent PLUS Loan helps parents of dependent undergraduate students cover educational cost for cover educational costs not covered by other financial aid. New changes on borrowing limits due to the One Big Beautiful Bill Act are available here.

How to Apply

• Process: Parent - Apply and sign your Master Promissory Note (MPN) at StudentAid.gov.

Eligibility & Borrower Requirements

• Who Can Borrow: Biological or adoptive parents. Stepparents are eligible if their information is on the FAFSA. (Legal guardians are not eligible).
• Student Status: Students must be enrolled at least half-time (6+ credits) in an undergraduate degree program.
• Credit Check: This loan requires a standard credit check. Borrowers must also be U.S. citizens or eligible non-citizens and not in default on any federal aid.

OB3 Loan Limits

Under the One Big Beautiful Bill Act (OB3), the following caps apply:

• Annual Limit: Maximum of $20,000 per student, per academic year.
• Lifetime Limit: A total of $65,000 per student.

Note: Total aid (including this loan) cannot exceed the student’s Cost of Attendance.

GRAD PLUS loans end July 1, 2026 under the One Big Beautiful Bill (OBBB)

Note: Students who’ve already started taking out Grad PLUS loans will able to continue to borrow as long as you’ve taken out a Grad PLUS loan before July 1, 2026, you can keep borrowing through the program for three more years, or until your program ends—whichever comes first. There will be limited federal caps.

Get more information on Federal Student Loan Basics for Students.

Your Student Status

Your loan options depend on when you first borrowed for your current program:

• Legacy Students: If you received a federal student loan for your current program before July 1, 2026, you may continue borrowing under the old rules (including Grad PLUS) for up to three academic years or until you finish your program, whichever comes first.
• New Students: If you begin your program or first borrow on or after July 1, 2026, you will be subject to the new annual and lifetime cap.

How to Apply

Eligible legacy students can still apply for the Graduate PLUS Loan and sign the Master Promissory Note (MPN) at studentaid.gov. New students will primarily utilize the Federal Direct Unsubsidized Loan, which is automatically part of your financial aid offer once your FAFSA is processed.

Loan Proration for Part-Time Students

If you are enrolled less than full-time, your annual loan limit will be prorated (reduced) in direct proportion to your enrollment status. You must still be enrolled at least half-time to receive any federal loans

Check with your state's Higher Education Agency for any loan programs that may be available to you.

Pennsylvania New Jersey All States

Applying With the Correct Loan Term (Semester)

When applying for a loan, please make sure you are applying with the correct loan term. In most cases loans funds will be split evenly between the semesters based on the loan term that is requested. For example, if you submit a loan for $10,000 and indicate the term of the loan as August to May, $5,000 will be disbursed in fall semester and $5,000 will be disbursed in spring semester.  Please note that the loan funds may be possibly split unequally between semesters based on other aid you are receiving and differences in enrollment between semesters.

Private Educational Alternative Loans are non federal loans that are available through various lenders. We encourage student borrowers to carefully compare and review these loans for the best available option. Students are encouraged to contact the Office of Financial Aid prior to pursuing Private Educational Alternative Loans.  

• Compare the benefits of borrowing a Federal Direct Student Loan before a Private Educational Alternative Loan.
• Compare the benefits of borrowing a Federal Direct PLUS Loan before a Private Educational Alternative Loan.
• Compare the benefits of borrowing a Federal Direct GradPLUS Loan before a Private Educational Alternative Loan.

We recognize that you have many choices when considering a loan, however, we are unable to recommend lenders. To assist you, we have provided information on lenders who have made loans to our students. The lenders are listed in random order. This is not an all-inclusive listing. You are not in any way required to use any of the lenders listed.  The list of lenders may be found at ELMSelect.

ELMSelect

Applying With the Correct Loan Term

When applying for a loan, please apply with the correct loan term (this means the correct loan date for the semester/semesters you are wishing to take the loan). In most cases loans funds will be split evenly between semesters based on the loan term that is requested. 

For example, if you submit a loan for $10,000 and indicate the term of the loan as August to May, $5,000 will be disbursed in fall semester and $5,000 will be disbursed in spring semester. Please keep in mind loan funds may be possibly split unequally between semesters based on other aid you are receiving and differences in enrollment between semesters as required by federal regulations. 

• Complete the FAFSA (Free Application for Federal Student Aid) to apply. No separate application is required.
• Be an undergraduate student who is pursuing your first bachelor's degree.
• Meet general eligibility requirements.
• Available for the equivalent of twelve full-time semesters.
• Eligibility may differ from year to year.

• Complete the FAFSA (Free Application for Federal Student Aid) to apply. No separate application is required.
• You must have exceptional financial need to receive as determined by the FAFSA.
• Be an undergraduate student who is pursuing your first bachelor's degree.
• Meet general eligibility requirements.
• Available for the equivalent of twelve full-time semesters.
• Eligibility may differ from year to year.

The TEACH Grant is a non-need-based program that provides up to $4,000 per year to students who meet the eligibility requirements.  An undergraduate student may receive up to $16,000 for completion of a first bachelor’s degree program and first post-baccalaureate program of study combines.  A graduate student is eligible to receive up to $8,000 during the period required to complete an eligible master’s degree program.  The Budget Control Act of 2011 put into place budget cuts that require a reduction in TEACH Grant award amounts.  

To be eligible for a Teach Grant at Commonwealth University, a student must complete the TEACH Grant Application as well as meet the eligibility requirements outlined on the application.  Once it has been determined that a student meets all criteria for eligibility, they must complete a counseling session as well as an “agreement to serve/promise to pay”. By signing this agreement, the student acknowledges an understanding of the terms of the grant and the terms of the teaching service requirements. Upon graduation, the student must teach full-time for at least four years within eight years of completing his or her program as a highly qualified teacher at a Title I school in a high needs field. If these conditions are not met, the grant must be repaid as an unsubsidized Direct Student Loan, with interest calculated from the date(s) of original disbursement.

Additional Information on TEACH Grant

For Pennsylvania Residents

• Complete the FAFSA by May 1, 2026 (For 2026-2027 Academic Year).  
• PHEAA will be sending students an email with PA State Grant information.
• Visit the PHEAA website for eligibility requirements.
• Pennsylvania State Grants are also available for summer. Visit the PHEAA website for more information, instructions, and to apply.

PA State Grant Information - Incoming students for 2026-2027 - Wait for an email from PHEAA with a link to activate your GrantUs account. The email will be sent to the email address you used on the FAFSA. If you do not pass their initial eligibility screening, you will not receive an activation notice.

Note: If you have a GrantUs account from a prior year (for example, 2024-25), PHEAA will not send you a new activation email. Sign in to your account using your existing account credentials.

PHEAA Website

For Non-Pennsylvania Residents

State grants may be available to out-of-state students from your home state. We encourage you to investigate the availability of such financial assistance.

Professional Experience Grants (PEGs) provide money for the big experiences that'll give you the transferrable skillset employers look for and build confidence in your life after college! While you're earning your degree, consider a professional career experience that'll help you practice what you've learned, navigate unfamiliar places, and build a network.

Learn more about Professional Experience Grants