Grad / Professional students – see note about important changes that allow you eligibility for these types of loans in the PLUS loan section below
Note: All student loans, including private (alternative) loans, are not dischargeable in bankruptcy. This means that if you borrow a student loan, you will have to pay it back, even if you go bankrupt. Contact an attorney for additional information.
You may be eligible for a subsidized loan (interest does not accrue while you are in school), an unsubsidized loan (interest accrues while you are in school) or a combination of the two.
Stafford loans disbursed during the period of 7/1/08 – 6/30/09 have an origination fee of 2.0% to cover the cost of administering the loan; 1.5% of the loan origination fee is automatically rebated to you at the time the loan is disbursed, in anticipation of on-time repayment. Hence, you will see just 0.5% deducted from the loan at the time it is disbursed.
The interest rate for Stafford loans varies, depending on whether the borrower is an undergraduate or graduate student, and on whether the loan is subsidized or unsubsidized. For subsidized Stafford loans taken by undergraduates, the interest rate for loans taken during the period of 7/1/08- 6/30/09 is fixed at 6.0%. For all other Stafford loans taken during the same period (i.e. all unsubsidized Stafford loans and for all Stafford loans made to graduate students), the interest rate is fixed at 6.8%.
Repayment on Stafford loans begins six months after you graduate or cease to be enrolled at least half-time. Half-time for undergraduates is 6 - 8 credit hours per term; for graduate and law students, it is 4-8 credit hours per term.
Students who borrow unsubsidized loans are charged interest from the date the loan is disbursed. You may pay the interest or you may allow it to accumulate. Accumulated interest is capitalized (added to the principal amount of your loan). Capitalized interest increases the total amount you have to repay.
|
Grade Level**
|
Dependent Undergraduate Students ***
|
Independent Undergraduate Students ***
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Graduate/Professional Students
|
|
Annual loan limits:
|
|
Freshman: 1-29 hours
|
$5,500, of which no more than $3,500 can be in
subsidized loans.
|
$9,500 – no more than $3,500 of this amount can be
in subsidized loans.
|
|
|
Sophomore: 30-59 hours
|
$6,500, of which no more than $4,500 can be in
subsidized loans.
|
$10,500 – no more than $4,500 of this amount can be
in subsidized loans.
|
|
Junior: 60-89 hours. and Senior: 90+ hours
|
$7,500, of which no more than $5,500 can be in
subsidized loans.
|
$12,500 – no more than $5,500 of this amount can be
in subsidized loans.
|
|
Graduate/Professional Student
|
|
|
$20,500–No more than $8,500 of this amount can be in
subsidized loan.
|
|
Aggregate loan limits:
|
|
Maximum total debt from Stafford Loans a student is
permitted
|
$31,000, of which no more than $23, 000 can be
subsidized.
|
$57,500 – no more than $23,000 of this amount can be
in subsidized loans.
|
$138,500—No more than $65,500 of this amount can be
in subsidized loans.
NOTE: The graduate debt limit includes Stafford loans received for
undergraduate study.
|
* The limit may be composed of just a Subsidized Stafford Loan or just an Unsubsidized Stafford Loan or a combination of both.
** A student’s grade level is determined by the amount of hours they have earned, not the amount of hours they have attempted.
***For dependent undergraduate students whose parents are denied a PLUS loan, refer to the limits for “Independent Undergraduate Students”.
We are a Direct Lending school, which means we offer Stafford loans directly through the Department of Education, rather than through banks.
We've put together some questions and answers about preferred lender lists - check it out here.
If you are offered and accept a Federal Stafford Loan, either go to dlenote.ed.gov to complete an electronic Stafford loan Master Promissory Note online or a Master Promissory Note outlining your rights and responsibilities will be mailed to you for signature if we do not already have one on file for you. Review it carefully and return the signed original to the financial aid office. We cannot accept faxed copies.
For information about loan consolidation, please see www.colorado.edu/finaid/consolidation.html.
The Graduate PLUS loan is available to students enrolled at least half-time in a graduate or professional program and who meet all of the other general eligibility requirements for the federal student aid programs. In addition, you must not have an adverse credit history (a credit check will be done). If you choose to accept all or any part of a Graduate PLUS loan, go to dlenote.ed.gov to complete the Master Promissory Note – choose the “Complete New MPN for Student Loans” link and follow the instructions. If you are unable to complete the online MPN or wish to sign a paper MPN, please contact our office to request the paper form.
PLUS loans have a fixed interest rate of 7.9%. A 4% loan origination fee is charged on these loans, but 1.5% of the fee is automatically rebated to you at the time the loan is disbursed, in anticipation of on-time repayment. Hence, you will see 2.5% deducted from the loan at the time it is disbursed. There are no annual or aggregate PLUS loan limits; you can borrow up to your full cost of attendance.
Note that subsidized and unsubsidized Stafford loans have advantages over PLUS loans, such as lower fixed interest rates, and a 6 month grace period after you leave school during which you are not required to begin repaying your loan. Consequently, it’s wise to take as much Stafford loan as you’re eligible to receive before you take any PLUS loan.
For more information about Graduate PLUS Loans, see studentaid.ed.gov/students/attachments/funding/PlusLoansQA.pdf.
The Parent PLUS Loan is offered to parents of dependent students. Only parents or step-parents are eligible to apply for the Parent PLUS loan. Grandparents and other relatives are not eligible. To accept all or a portion of the PLUS (Parent) Loan, one parent must complete the Federal Direct Parent PLUS Loan Information (PLSM) form that was included with your Award Package and return it by fax or mail to the Office of Financial Aid.
A credit check is required to determine eligibility for the PLUS (Parent) Loan. If the parent borrower does not pass the credit check, they have two options.
- Apply for the PLUS loan with an endorser. The endorser must pass a credit check as well and agree to be held responsible for the loan should the parent borrower fail to repay it.
- Cancel the PLUS loan and offer the student the independent portion of their Stafford loans (please see chart above). You may be eligible to automatically choose this second option without even applying for the PLUS loan. To qualify for this you must have either negative available income on the FAFSA or be able to provide proof of declaring bankruptcy in the last 5 years.
Once the PLUS (Parent) Loan credit check is approved, either go to dlenote.ed.gov and the parent borrower can complete an electronic PLUS loan Master Promissory Note online or a Promissory Note will be mailed to your parent for signature. Return the signed original to the financial aid office. We cannot accept faxed copies. The PLUS (Parent) Loan proceeds will be credited to your university bill once the promissory note is received. Remember that if excess funds are to be released to the parent and not the student, it will take 3-4 weeks longer for the funds to be sent to you. If funds are to be released to the student please fill out the PLUS Release Form.
An origination fee of 4 percent is deducted from each loan you borrow to cover the cost of administering the loan; 1.5% of this is automatically rebated at the time of disbursement in anticipation of on-time repayment. The interest rate is a fixed rate of 7.9%. Interest is charged from the date the loan is disbursed. Repayment starts 60 days after the second disbursement of the PLUS loan; however, the parent borrower can choose to defer payments on the PLUS loan until six months after the date their student ceases to be enrolled at least half time (interest will accrue and be capitalized during any deferment).
The yearly limit on a PLUS (Parent) Loan is equal to your cost of attendance minus any other financial aid you receive.
If excess funds are to be released to the parent and not the student, it may take 3-4 weeks longer for the funds to be sent
to you. If funds are to be released to the student please fill out the PLUS Release Form.
We are a Direct Lending school, meaning that we will only accept PLUS loans from The Department of Education's Direct Loan program, not from banks. Please contact us if you have questions concerning the PLUS loan.
Borrowing a Parent PLUS Loan will be regarded as parental support on in-state residency petitions and will therefore jeopardize the petition.
Repayment
You will receive notifications from the Direct Loan Servicer about repayment and of the date your loan repayment begins. You are, however, responsible for beginning repayment on time, even if you don’t receive this information. Update your address with the Direct Loan Service Center at 800-848-0979. Their website is www.dlservicer.ed.gov.
The Federal Perkins and Federal Stafford loans have a grace period. After you graduate, leave school, or drop below half-time enrollment, please review our policy on enrollment levels. You have a nine month grace period for Perkins loans and a six month grace period for Stafford loans before repayment begins. You are allowed only one grace period per loan. For example, taking a semester off from school may count toward your one-time grace period if the "time out" is greater than six months. In this case, your repayment will begin upon graduation.
Repayment on a Parent PLUS Loan begins 60 days after the last disbursement, usually in March of the fall/spring academic year. Remember, however, that interest begins accruing on the amount of the first disbursement at the time it is credited to your university bill. A parent borrower can choose to defer payments on the PLUS loan until six months after the date their student ceases to be enrolled at least half time (interest will accrue and be capitalized during any deferment).
You are eligible for a deferment (payments are postponed) on Stafford and Perkins loan payments as long as you are enrolled at least half time or for circumstances that include, but are not limited to, active military duty, Peace Corps, teaching in a designated Department of Education teacher shortage area, etc. You may be charged interest during the deferment. For more information, contact the Direct Loan Service Center at 800-848-0979.
If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may be eligible for a forbearance (payments temporarily postponed due to a serious hardship) for a limited and specified time. Please contact the Direct Loan Service Center at 800-848-0979 or the Perkins Loan office at 303-492-5571 to find out if you qualify for a forbearance. You can also read our consolidation page; www.colorado.edu/finaid/consolidation.html.
The Perkins loan is awarded to the lowest income students. The interest rate is 5% with no origination fee. Repayment begins nine months after you graduate or cease to be enrolled at least half time (6 semester hours).
CU-Boulder awards Federal Perkins Loans primarily from our own funds that are generated from former students repaying their Perkins Loans. If you are offered and accept this loan, a Master Promissory Note outlining your rights and responsibilities will be mailed to you for signature. Review it carefully and return the signed original to the financial aid office. We cannot accept faxed copies.
For information on how to repay a Perkins Loan, please see the Bursar's Perkins Page.
*For loans that were disbursed on or after July 1, 1998.
Alternative loans are available to
students who are not eligible for federal loans
or who need additional assistance beyond their
financial aid offer. The funds are borrowed through private banks. We recommend you use Federal Stafford Loans before you resort to private alternative loans. Stafford Loans usually have better terms and more lenient repayment options. We are a Direct Lending school and will not accept Stafford or PLUS loans through an alternative loan lender. See our Alternative Loan page for more detail. For FTC consumer information on avoiding deceptive student loan offers click here.
| Program |
Borrower |
Lender |
Eligibility |
Limits Per Year |
Interest Rate and Origination Fee* |
Interest Subsidy |
Repayment |
| Perkins |
Student |
CU-Boulder. |
Need-based; lowest income students |
$4,000. |
5% and no origination fee |
No interest during school or grace period |
Nine months grace period. Up to 10 years to repay |
| Subsidized Stafford |
Student |
Department of Education |
Need-based |
Freshman $3,500
Sophomore $4,500
Junior $5,500
Senior $5,500
Graduate $8,500
Nondegree $2,625
Nondegree, graduate prep. $5,500 |
Undergraduates: Fixed 6.0% and 2.0% origination fee
Graduates: Fixed 6.8% and 2.0% origination fee |
No interest during school or grace period |
Six months grace period. Four repayment plans |
| Unsubsidized Stafford |
Student |
Department of Education |
Not need-based |
Dependent Students
Freshman $3,500
Sophomore 4,500
Junior/Senior 5,500
Independent Students
Freshman $7,500
Sophomore $8,500
Junior/Senior $10,500
Graduate $20,500
Nondegree $6,625
Nondegree, graduate prep. $10,500 |
Fixed 6.8% and 2.0% origination fee |
Interest can be paid while in school or deferred. Deferred interest is capitalized |
Interest payments begin sixty days after final disbursement. Four repayment plans |
| PLUS |
Parent and Graduate Students |
Department of Education |
Not need-based. Credit check required |
Equal to cost of student’s education minus other financial aid |
Fixed 7.9% and 4% origination fee |
None |
Sixty days after final disbursement. Three repayment plans |
| Nonfederal Loans |
Student or Parent |
Bank |
Varies |
Equal to cost of student’s education minus other financial aid |
Varies |
Varies |
Varies |
*For loans disbursed between July 1, 2008 and June 30, 2009
Submit the FAFSA to be considered for work-study. Work-study is a need-based form of financial aid. Work-study is not a lump sum of money you receive for your university bill but instead students earn their award by working at on- or off-campus jobs.
A variety of jobs are available at competitive wages. Jobs are listed in CU Connect (the Financial tab), or you may stop by Student Employment in Regent 205 for assistance.
If you are not awarded work-study, call financial aid to be placed on the wait list. If you are awarded work-study for fall semester, you must begin working before October 1 to avoid cancellation of your work-study award.
Work-study income is taxable but does not count against you on your FAFSA EFC for the following year. Please see our Student Employment page for more details.
This is a program guaranteeing that eligible Colorado residents from low-income families will be able to afford the academic costs of a university education without going into debt. www.colorado.edu/finaid/promise.html
