Loans | Financial Aid

Loans | Financial Aid

Federal Loans

The University of Chicago participates within the Federal Direct Loan packages. Students and households can use loan funds from these packages to enhance the need-based assist awarded by Financial Aid. Please keep in mind that rates of interest are for the 2020-21 tutorial 12 months.

To request a federal loan, please full the 2020-21 Federal Direct Stafford Loan Request Form and submit it to Financial Aid. Your request shall be reviewed to find out your federal loan eligibility.

Federal Direct Subsidized Loan

The Federal Direct Subsidized Stafford Loan is a need-based loan with a 2.75% mounted rate of interest. Student eligibility is decided by the Free Application for Federal Student Aid (FAFSA). Loan curiosity doesn’t accrue whereas students are enrolled at the very least half time. Students could borrow as much as $3,500 in backed funds per tutorial 12 months as a first-year student, $4,500 as a second-year and $5,500 as a third- or fourth-year student*. After leaving college, there’s a six-month grace interval earlier than loan compensation begins. The origination charge is 1.059%.

Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Stafford Loan is a loan with a 2.75% mounted rate of interest. Student eligibility is decided by the Free Application for Federal Student Aid (FAFSA). Students could borrow as much as $2,000 per tutorial 12 months*. Loan curiosity accrues whereas the student is enrolled. After leaving college, there’s a six-month grace interval earlier than loan compensation begins. The origination charge is 1.059%.

Interest charges are decided annually by the Federal Government. Click right here for probably the most up-to-date rates of interest.

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Federal Direct Parent PLUS Loan

The Federal Parent PLUS Loan is a loan with a 5.30% mounted rate of interest. This loan is borrowed by a household to help with the tutorial bills related to their student’s schooling on the University of Chicago. This is a credit-based loan for which the household should qualify. If the household will not be accepted for the loan, an undergraduate student turns into eligible to borrow an extra quantity by means of the unsubsidized Stafford Loan program: an extra $4,000 for first- and second-year students, and an extra $5,000 for third- and fourth-year students*. The origination charge is 4.236%.

Federal Loan Repayment

Repayment of Federal Direct student loans begins six months after your undergraduate enrollment drops beneath half-time (at UChicago, half-time is 200 items). Whether you graduate, or determine to take a 12 months off from college, after six months you may be required to start compensation.  

Repayment of Federal Direct Parent PLUS loans begins 60 days after the loan has disbursed. 

Please go to the U.S. Department of Education loan compensation web site for extra detailed info on loan compensation and the choices obtainable to you.

Public Service Loan Forgiveness Program

If you’re employed by a authorities or not-for-profit group, you might be able to obtain loan forgiveness underneath the Public Service Loan Forgiveness Program (PSLF). To study extra about this program, please go to the PSLF web site.

Alternative Loans

Financial Aid doesn’t endorse or promote any lenders that supply non-public different loans. We advise that the choice loan choice be used as a final resort, in any case federal loan choices have been exhausted. Additionally, we advocate that you just use different student loans conservatively, because the rate of interest shall be variable or floating and won’t be capped. Please bear in mind that the rates of interest, compensation charges, and phrases are extra favorable with Federal Direct Loans. However, you could borrow from any lender of your selecting, and Financial Aid will nonetheless course of your software in a well timed method.

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Researching completely different different lenders, their loan merchandise, and their advantages, in addition to exploring different means of monetary assist earlier than making use of for another loan, is to the benefit of the student.

*First-Year Student: 0-899 Units; Second-Year Student: 900-1,799 Units; Third-Year Student: 1,800-2,699 Units; Fourth-Year Student: 2,700 Units and above.

Using Loans to Purchase a Computer

Students in want of funds to buy a pc can submit a one-time price range enhance request. If accepted, the student might be able to borrow funds within the type of a loan for the acquisition. To submit this request, please e-mail the Office of Financial Aid at [email protected] and embody documentation of the price of the pc. 

Deferment of Previous Student Loans

Contact your loan servicer to confirm that you’ve the choice of deferring your loans while you’re enrolled. If eligible to defer the loans, please go to detailed info on the college’s reporting course of on the Registrar’s web site. Do not cease making funds in your loan(s) till you obtain written affirmation out of your lender that your request for a deferment has been accepted.

Consumer Information

The Department of Education has an ombudsperson who works with Federal student loan debtors to informally resolve loan disputes and issues. Please discuss with the Office of Student Financial Assistance Ombudsman for detailed info on the steps you have to take to resolve a Federal loan dispute. The website lists incessantly requested questions and means that you can contact the ombudsperson by e-mail. You might also contact the ombudsperson at (877) 557-2575.