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Loans

Federal student loans are borrowed funds that you must repay with interest. A federal student loan allows students and their parents to borrow money to help pay for college through loan programs supported by the federal government. They have low interest rates and offer flexible repayment terms, benefits, and options. To qualify for student loans, students must be eligible to complete a FAFSA. ORSAA students are not eligible for loans.

Loan Programs

How to get a loan

To get a loan, follow the steps to receiving financial aid, beginning with Step 1: Apply for financial aid. If you are eligible for a loan, it will be listed when you review your award.

Want to save some money?

Making early interest payments reduces the amount you’ll owe later. Consider making (small) monthly interest payments on your loans while you’re in school. You’ll save money a lot of money in the long run.

Types of financial aid loans

Loans are limited and must be repaid, so take only what you need for your education. Learn how to responsibly borrow for school in Managing Student Loans.

Direct Loan

The most utilized loan program is the William D. Ford Federal Direct Stafford Loan. The Direct Loan is made through the U.S. Department of Education. Direct Loans are either subsidized or unsubsidized – subsidized loans have slightly better terms to help out students with financial need. Read more at the Department of Education’s loans page.

Steps for Direct Loan borrowers:

Starting School

If you are a first-time borrower, you must complete these steps before receiving your Direct Loan:

  1. Complete entrance counseling. Sign in to the Federal Student Aid site and click Complete Entrance Counseling.
    • Under Counseling Type, choose to complete entrance counseling as an undergraduate student.
    • Answer all questions and submit.
  2. Sign a master promissory note. Sign in to the Federal Student Aid site and click Complete Master Promissory Note. Read and complete all sections.

Leaving School

When you leave EOU or drop below half-time, you will complete these steps:

  1. See what you owe. Visit the National Student Loan Data System website to see your Direct Loan amounts and servicers.
  2. Estimate your loan payments. Go to the Direct Loan Calculator and Interest Rates page and estimate your current loan payments under a standard repayment plan.
  3. Complete exit counseling. In exit counseling, you will learn about all your options as a student loan borrower, such as loan refinancing, loan consolidation, deferment, and forbearance. You are required to complete exit counseling when you leave EOU or drop below half-time (6 credits per term). To complete exit counseling, sign in to the Federal Student Aid site.

Plus Loan

Parents of dependent students may borrow money in their name to help meet the student’s educational expenses. To be eligible for a Parents’ Loan for Undergraduate Students (PLUS loan), you must demonstrate that you have unmet financial need and that you do not have an adverse credit history. If you are eligible, your son/daughter will receive an email providing further instruction. The maximum PLUS loan amount you can borrow is the cost of attendance minus any other financial assistance received, like scholarships or financial aid. For more on PLUS loan eligibility and borrowing limits, visit the Department of Education’s  PLUS Loan page.

About repayment

After you graduate or drop below half-time (6 credits per term), you have a grace period of 6 months. After the 6 months are up, you have to start making payments on your loans. You’ll need to find out where to send payments, as well as choose a repayment plan that works for you.

Check this page for more information on Student Loan Repayment.

Direct Loan Entrance and Exit Counseling
Managing Student Loans
How to Pay Interest on Unsubsidized Loans