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Loans

Loans are a type of financial aid which must be repaid with interest, usually beginning shortly after a student ceases to be enrolled at least half-time.

Detailed information about each of the loan programs available to students at Drake is below.

Federal Direct Subsidized/Unsubsidized Loan

The Federal Direct Loan Program provides favorable loans to eligible degree-seeking students that are enrolled on at least a half-time basis. To be eligible, students must complete the FAFSA. To receive these loans, students must complete all required loan steps, outlined here.

There are two types of Federal Direct Stafford Loans: Subsidized and Unsubsidized. Students are not responsible to pay interest on Subsidized Loans during periods of enrollment of at least half-time, during the 6-month grace period after you leave school, or during future periods of deferment. Undergraduate students with financial need may be eligible for Subsidized Loans. Undergraduate students without financial need and graduate/professional students are eligible only for Unsubsidized Loans. Subsidized/Unsubsidized Loans have an origination fee of about 1%, which is deducted from the amount of the principle borrowed.

There are annual borrowing limits for Federal Direct Subsidized/Unsubsidized Loans, which are based on a student’s grade level, dependency status (as determined by the FAFSA), and degree type. These limits are summarized in the table below:

Grade Level/Degree Type

Dependent/
Independent

Subsidized
Limit

Unsubsidized
Limit

Total Combined
Limit

Freshman (0-29 credits)

Dependent

3,500

5,500

5,500

Independent

3,500

9,500

9,500

Sophomore (30-59 credits)

Dependent

4,500

6,500

6,500

Independent

4,500

10,500

10,500

Junior (60-89 credits)

Dependent

5,500

7,500

7,500

Independent

5,500

12,500

12,500

Senior (90+ credits)

Dependent

5,500

7,500

7,500

Independent

5,500

12,500

12,500

Graduate/Professional

Independent

0

20,500

20,500

 

In addition to annual borrowing limits, there are aggregate borrowing limits for Direct Subsidized/ Unsubsidized Loans. When borrowers graduate or withdraw, they are required to complete loan exit counseling at www.studentloans.gov. More information about Federal Direct Subsidized/Unsubsidized Loans is available here.

Health Professions Loan (HPL)

The Health Professions Loan is a need-based loan available to students seeking a Doctorate of Pharmacy degree from Drake University. This loan has a fixed interest rate of 5%, and interest does not begin to accrue until repayment begins, which occurs one year after the student ceases full-time enrollment or leaves the PharmD program. To be considered, students must complete the FAFSA and include parental information (even if not required to do so by the FAFSA).

Funding for Health Professions Loans is limited, and priority may be given to P1 and P2 students. Students who are offered a Health Professions Loan will receive instructions concerning the required steps to receive the loan. Typically loan amounts range from $5,000-7,000 per year.

Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan is a loan for biological or adoptive parents of dependent students (as defined by the FAFSA), or for step-parents who are included in the parent section of the student’s FAFSA. The parent borrower must be a U.S. citizen or eligible non-citizen. Completion of the FAFSA and credit approval is required in order for a student to receive a Parent PLUS Loan, and the student must be enrolled at least half-time (6+ credits). Instructions to apply for the Parent PLUS Loan can be found here.

Parent borrowers who are approved for the Parent PLUS Loan may borrow up to the student’s remaining cost of attendance. Parents may choose whether to begin repayment immediately, make interest-only payments while the student is enrolled, or defer all payments until the student leaves school. The Parent PLUS Loan has an origination fee of 4.3%. More information about the Federal Parent PLUS Loan can be found here.

Federal Direct Graduate PLUS Loan

If graduate students need additional funding after utilizing their eligibility for the Federal Direct Unsubsidized Loan, the Federal Direct Graduate PLUS Loan may be an option (pending credit approval). The Graduate PLUS Loan is available to eligible degree-seeking graduate or professional students who are enrolled at least half-time (5+ credits). Completion of the FAFSA is required in order for a student to receive a Graduate PLUS Loan. Instructions to apply for the Graduate PLUS Loan can be found here.

Borrowers who are approved for the Graduate PLUS Loan may borrow up to their remaining cost of attendance. The Graduate PLUS Loan has an origination fee of 4.3%. More information about the Federal Direct Graduate PLUS Loan can be found here.

Private Student Loans

Private student loans may be available to students or parents to help cover the remaining costs of education after scholarships, grants, and federal student loans have been applied. An application and credit approval are required. As a resource to students, Drake maintains a preferred private lender list that helps you compare different private student loan options. The lenders and loan products that are included on this list were selected on the basis of their terms (interest rates, fees, and borrower benefits) and the service that is provided to students. Students may borrow from any lender of their choosing without penalty.

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