Loan Programs


Loans Are Financial Aid That Must Be Repaid


Federal Direct Loans

Federal Direct Subsidized and Unsubsidized Loans

đź”— Federal Student Loan Basics for Students

🔗 Préstamos Federales para Estudiantes Conceptos Básicos para Estudiantes

Your maximum Direct Loan eligibility is the same at every institution you attend. It may vary in content based on your estimated need at each school, but you always have the same, maximum eligibility.

The Federal Direct Loan Program has both a need based, subsidized, component and a non-need based, unsubsidized, component.

The Direct Subsidized Loan is a loan based on financial need for which the federal government generally pays the interest that accrues while the borrower is in an in-school, grace, or deferment status.
The Direct Unsubsidized Loan is a loan for which the borrower is fully responsible for paying the accruing interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan. Interest payments will by default be deferred, but can be opted into while in school. This type of loan is not based on financial need.

Direct Loan interest and principal payments are automatically deferred during school (while students are attending at least half-time) and through the student’s six month grace period. Direct Loan interest rates are fixed each year by law and may vary from award year to award year. Direct Loan award amounts are based on a student’s class level and dependency status, need, and aggregate borrowing. Students who elect to borrow under the Federal Direct Loan program must complete a Master Promissory Note (MPN), and first-time borrowers must complete Entrance Counseling. To complete your Direct Loan MPN, Entrance Counseling, or Annual Student Loan Acknowledgment, go to: studentaid.gov.

(NOTE: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period.)

Annual and Aggregate Limits for Federal Direct Subsidized and Unsubsidized Loans

Page 3-98 of Chapter 5 of Volume 3 of the FSA HB, Dec 2018 (PDF)


Federal Direct Parent Loan for Undergraduate Students (PLUS)

đź”— Direct PLUS Loan Basics for Parents

🔗 Conceptos básicos sobre préstamos PLUS del Direct Loan Program para padres

The Federal Direct Parent PLUS Loan is available to parents of dependent, undergraduate students for their educational expenses. Parents may borrow up to the difference between the student’s estimated cost of attendance and the other financial assistance that the student is expecting for the year. Parents who want to borrow under the PLUS loan program must apply for credit [after May 1 of each year] from the U.S. Department of Education at studentaid.gov. Once the parent borrower’s credit is approved, the parent borrower must complete or have an active PLUS Master Promissory Note (MPN) on file with the Department, submit to EOU’s Financial Aid Office the PLUS Acceptance Form, and the student will need to have accepted the loan in his or her student portal (i.e. Mountie Hub) before disbursement.

Generally, repayment on the PLUS loan begins after the last disbursement for the academic year, but can be deferred, and interest begins accruing immediately with each disbursement. Students who have had a parent denied during the PLUS approval process, or who do not meet the eligibility requirements (e.g. noncitizen parents) are eligible to borrow additional funding in the Federal Direct Loan program (submit a Loan Revision Request form to the Financial Aid Office). Any credit balances on a student’s account resulting from receipt of PLUS loan funds will be mailed directly to the parent borrower unless otherwise directed.


Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS loan is offered to students enrolled in a graduate or professional degree program to cover the gap between a student’s estimated cost of attendance and their estimated financial assistance. Students who want to borrow under the Graduate PLUS Loan program must first pass a credit check at studentaid.gov. Students who have been approved must then complete a Graduate PLUS Master Promissory Note (MPN).  Students should borrow their full Unsubsidized Direct Loan maximums before applying for the Federal Direct Graduate PLUS loan. For additional questions on this program please contact the Financial Aid Office or visit studentaid.gov.


Federal Direct Loan Interest Rates and Loan Fees

Federal Direct Loan Interest Rates

Loan TypeStudent Level2024-2025 Interest Rate
SubsidizedUndergraduate6.533%, fixed
UnsubsidizedUndergraduate6.533%, fixed
Graduate8.083%, fixed
PLUSParent9.083%, fixed
Graduate9.083% fixed
For loans first disbursed between July 1, 2023 and June 30, 2024 inclusive.
Loan TypeStudent Level2023-2024 Interest Rate
SubsidizedUndergraduate5.50%, fixed
UnsubsidizedUndergraduate5.50%, fixed
Graduate7.05%, fixed
PLUSParent8.05%, fixed
Graduate8.05%, fixed
For loans first disbursed between July 1, 2022 and June 30, 2023 inclusive.
How Interest Rates are Determined….

Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013 have fixed interest rates that are determined in accordance with formulas specified in sections 455(b)(8)(A) through (C) of the Higher Education Act of 1965, as amended (HEA).

The interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type and, for Direct Unsubsidized Loans, whether the loan was made to an undergraduate or graduate student. Loans first disbursed during different 12-month periods may have different interest rates, but the rate determined for any loan is a fixed interest rate for the life of the loan.

For each loan type, the calculated interest rate may not exceed a maximum rate specified in the HEA. The maximum interest rates are 8.25% for Direct Subsidized Loans and Direct Unsubsidized Loans made to undergraduate students, 9.50% for Direct Unsubsidized Loans made to graduate and professional students, and 10.50% for Direct PLUS Loans made to parents of dependent undergraduate students or to graduate or professional students.

See studentaid.gov for more information.

Federal Direct Loan Fees

Loan TypeLoan Fee
Direct Subsidized and Unsubsidized1.057%
PLUS4.228%
For loans first disbursed between October 1, 2024 and September 30, 2025 inclusive.
Loan TypeLoan Fee
Direct Subsidized and Unsubsidized1.057%
PLUS4.228%
For loans first disbursed between October 1, 2023 and September 30, 2024 inclusive.

Sequester-required loan fees and grant reductions for FY 24


Federal Loan Servicer Information

Please click here for information about the federal loan servicers.


Private (or alternative) Student Loans (i.e. not Federal)

Generally, there are two types of student loans—federal and private.

Federal student loans and federal parent loans: These loans are funded by the federal government with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.

Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans.

Compare Federal and Private Student Loans

Schedule a Financial Aid Counseling Appointment

Important!

If you have lost your federal aid eligibility due to past unsatisfactory academic progress, you do have the option to request reinstatement of your eligibility by submitting a Satisfactory Academic Progress appeal. Appeal Forms are available online.

Private Loan Lenders

Click here for borrowing essentials and to search for a private student loan.

The Financial Aid Office at Eastern Oregon University does not endorse, recommend, or promote any lender selection for private loans.

The lenders and loan options presented in FastChoice include lenders who provided a loan at the school in the past.

FastChoice displays loan options for students and parents with clear, consistent information on a user-friendly website, and provides student education through borrowing essentials.  FastChoice is free and fully supported by Great Lakes, a federal loan servicer.

You are free to choose any lender, including those not presented in FastChoice. If you choose a lender that is not presented, please contact the Financial Aid Office. Application processing will not be delayed unnecessarily if you choose a lender not presented.

Want to find your own lender?

Questions to ask lenders when searching for alternative or private student loans.
  • Do you lend to students at Eastern Oregon University?
  • Do I need to be a member of a credit union to apply at a credit union?
  • What are your repayment terms (e.g. 10 years, 15 years, up to 25 years)?
  • Do you have repayment incentives?
    • Do you have interest rate reductions with automatic payments? What are they?
    • Do you have interest rate reductions for on-time monthly payments? How many consecutive months?
    • Do you defer principal and interest during the school year, pay only interest during school, or pay principal and interest immediately?
    • Do you have flexible repayment options? What are they?
    • Do you have deferment and forbearance options? What are they?
  • What are the loan amounts?
    • Do you have an annual minimum?
    • What is your aggregate maximum?
  • What is the interest rate? Is it fixed or variable?
  • How is the interest rate calculated?
  • Are there any fees?
    • How are fees assessed?
    • Can I get a loan without any fees?
  • How much will this loan cost in total?
  • Am I required to maintain satisfactory academic progress (SAP)?
  • Do I need to be at least a half-time student?
  • Do I need to have a credit worthy cosigner?
    • None, with approved credit?
    • Yes, depending on credit rating?
  • If I’m approved without a cosigner, can my interest rate be lowered if I get a cosigner?
  • Are there cosigner release benefits?
  • Will my alternative education loan be sold to another lender at any time?
    • If my loan is sold, will any repayment incentives be honored by the purchasing lender?
  • What will my monthly payments be?
    • Can they vary based upon loan amount and interest of loan?
    • Is there a grace period?
  • Other things to consider when selecting a lender:
    • What kind of upfront discounts do they offer?
    • What can you afford?
      • Understand the ultimate cost of the loan over its lifetime. Compare annual percentage rates (APR) versus interest rates and fees to determine the real cost of the loan.
      • Be aware of what the monthly payments will be after graduation or leaving school and how that will affect your lifestyle after college.
    • Get a sense of the lender’s customer service. You may be with them for a long time, and a lender with whom it is easier to work will make it more palatable.
    • Beware of loan scams that focus on students.
    • Find out what the “borrower benefits” really mean to you. How is each benefit achieved and how are they kept throughout repayment? What happens if you miss an “on time” payment?
    • Are there forbearance or deferment options? Understand what additional cost these may have for you.
    • How does the lender capitalize interest (for example, after repayment begins or quarterly)?
    • Notify your lender of any change in address, name, or repayment problems—lack of communication is one of the first steps toward delinquency.
    • Borrowers should always explore federal loan options first as alternative student loans may have higher interest rates and fees. Federal Student Aid can help you compare the two options.
    • Please note that lenders offer better interest rates to borrowers who have a qualified cosigner.
    • Law and graduate students may find that lenders have an alternative loan designed for their field of study.

Our officials are prohibited from accepting any financial or other benefits in exchange for displaying lenders and loan options in FastChoice.  Prohibited activities include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution’s financial aid office; allowing lenders to place our institution’s name or logo on any of their products; and owning of lenders’ stock (for college officials who make financial decisions for our institution).

Your loan application will be forwarded to the EOU Financial Aid Office after your loan has been credit-approved and you have signed the promissory note.  Your lender will provide you with current interest rates, processing fees and cosigner requirements. Contact the Financial Aid Office with questions regarding loan eligibility.

Self-Certification Information

Private loan borrowers should be aware of two important changes established by the Truth in Lending Act (TILA) 15 USC § 1638(e), both of which will affect the time required to apply for, and receive, a private student loan:

  1. Self-Certification form:  As of February 14th, 2010, when a student applies for a private student loan the lender is required to collect a Self-Certification form from the student.  This form will be available during the online process or the lender will mail a paper copy to the student. Please note:  private loan funds will not be disbursed until the lender receives the Self-Certification form.
  2. Delays in disbursement:  After the lender has received the Self-Certification form from the student, and the loan approval from the EOU financial aid office, they will send the student a Final Disclosure which details the terms of the loan. The lender is required to wait up to 6 business days before disbursing the loan to the school.  This delay was included in the TILA to give the student (or cosigner) time to cancel the loan after reviewing the terms of the Final Disclosure.

Financial Aid Office Code of Conduct

EOU Policy regarding Private Lenders and Preferential Prohibition thereof.

Code of Conduct for Financial Aid Professionals

  1. No action will be taken by financial aid staff that is for their personal benefit or could be perceived to be a conflict of interest.
    • Employees within the financial aid office will not award aid to themselves or their immediate family members. Staff will reserve this task to an institutionally designated person, to avoid the appearance of a conflict of interest.
    • The University has no preferred lending agreement with any lender of private educational loans and does not maintain a preferred lender list. Neither the University nor any employee shall enter into any revenue-sharing arrangement with any lender or accept offers of funds for private loans to students in exchange for providing concessions or promises to the lender for a specific number of loans, a specified loan volume, or a preferred lender arrangement.
    • A borrower’s choice of a lender will not be denied, impeded, or unnecessarily delayed by the institution. Borrowers will not be auto-assigned to any particular lender.
    • No amount of cash, gift, or benefit in excess of a de minimis amount shall be accepted by a financial aid staff member from any financial aid applicant (or his/her family), or from any entity doing business with or seeking to do business with the institution (including service on advisory committees or boards beyond reimbursement for reasonable expenses directly associated with such service).
    • No compensation may be accepted for any type of consulting arrangement or contract to provide services to or on behalf of a lender relating to education loans.
  2. Information provided by the financial aid office is accurate, unbiased, and does not reflect preference arising from actual or potential personal gain.
  3. Institutional award notifications and/or other institutionally provided materials shall include the following:
    • A breakdown of individual components of the institution’s Cost of Attendance.
    • Clear identification of each award, indicating type of aid, i.e. gift aid (grant, scholarship), work, or loan.
    • Standard terminology and definitions.
    • Renewal requirements for each award.
  4. All required consumer information is displayed in a prominent location on the institutional web site(s) and in any printed materials, easily identified and found, and labeled as “Consumer Information.”
  5. Financial aid professionals will disclose to their institution any involvement, interest in, or potential conflict of interest with any entity with which the institution has a business relationship.

Statement of Ethical Principles

The primary goal of the institutional financial aid professional is to help students achieve their educational goals by providing appropriate financial support and resources. To this end, this statement provides that the financial aid professional shall:

Advocate for students
  • Remain aware of issues affecting students and continually advocate for their interests at the institutional, state and federal levels.
  • Support federal, state and institutional efforts to encourage students to aspire to and plan for education beyond high school.
Manifest the highest level of integrity
  • Commit to the highest level of ethical behavior and refrain from conflict of interest or the perception thereof.
  • Deal with others honestly and fairly, abiding by our commitments and always acting in a manner that merits the trust and confidence others have placed in us.
  • Protect the privacy of individual student financial records.
  • Promote the free expression of ideas and opinions, and foster respect for diverse viewpoints within the profession.
Support student access and success.
  • Commit to removing financial barriers for those who want to pursue postsecondary learning and support each student admitted to our institution.
  • Without charge, assist students in applying for financial aid funds.
  • Provide services and apply principles that do not discriminate on the basis of race, gender, ethnicity, sexual orientation, religion, disability, age, or economic status.
  • Understand the need for financial education and commit to educate students and families on how to responsibly manage expenses and debt.
Comply with federal and state laws
  • Adhere to all applicable laws and regulations governing federal, state, and institutional financial aid programs.
  • Actively participate in ongoing professional development and continuing education programs to ensure ample understanding of statutes, regulations, and best practices governing the financial aid programs.
  • Encourage colleagues to participate in the financial aid professional associations available to them at the state, regional, or national level and offer assistance to other aid professionals as needed.
Strive for transparency and clarity
  • Provide our students and parents with the information they need to make good decisions about attending and paying for college.
  • Educate students and families through quality information that is consumer-tested when possible. This includes (but is not limited to) transparency and full disclosure on award notices.
  • Ensure equity by applying all need-analysis formulas consistently across the institution’s full population of student financial aid applicants.
  • Inform institutions, students, and parents of any changes in financial aid programs that could affect their student aid eligibility.
Protect the privacy of financial aid applicants
  • Ensure that student and parent private information provided to the financial aid office by financial aid applicants is protected in accordance with all state and federal statutes and regulations, including FERPA and the Higher Education Act, Section 483(a)(3)(E) (20 U.S.C. 1090).
  • Protect the information on the FAFSA from inappropriate use by ensuring that this information is only used for the application, award, and administration of aid awarded under Title IV of the Higher Education Act, state aid, or aid awarded by eligible institutions.
  • Note: The Higher Education Act does not allow us to share data from your FAFSA directly with certain outside agencies, even with your written permission.

*This was adopted in part from the National Association of Student Financial Aid Administrators’ Statement of Ethical Principles and Code of Conduct for Financial Aid Professionals. The obligations in this Code of Conduct are in addition to any requirements imposed by state or federal laws, or Eastern Oregon University policies.

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