Types of Loans for Graduate Students
Loans are types of financial assistance that must be repaid. Be sure that you understand the terms of any loans you borrow for your education. The repayment terms of student loans can vary. The terms of each loan type and estimated repayment schedules will be available through Direct Loan Servicing. For MSU Denver students, your Federal Direct Stafford and Federal Graduate PLUS Loan guarantor will be the Department of Education. Online Entrance Interviews are mandatory for all first-time Stafford Loan borrowers at MSU Denver to inform you of your rights and responsibilities as a student borrower. Loan type and loan eligibility amount is determined by the Office of Financial Aid, based on information from the Free Application for Federal Student Aid (FAFSA). If you have further questions about a loan, please contact the Office of Financial Aid and/or Direct Loan Servicing.
Types of Loans
Federal Direct Stafford Graduate Unsubsidized Loans
- As of July 1, 2012 graduate students are no longer eligible for subsidized loans.
- Annual limit = $20,500
- Interest rate = 5.84%
Federal Direct Stafford Loans are offered directly to students and funded by the Department of Education. You are automatically considered for a Direct Stafford Loan after submitting your FAFSA.
- Repayment of your Federal Direct Stafford Loans is deferred until 6 months after you graduate, stop attending school, or drop below half-time enrollment.
- An unsubsidized loan begins accruing interest at the time the loan is disbursed.
- Graduate students are only offered Unsubsidized Loans.
- You can choose to pay the interest on an Unsubsidized Loan monthly, or else have it accrue on to the principal balance of your loan, which will increase the amount you have to repay.
- Click here for more detailed information on Federal Direct Stafford Unsubsidized Loans.
Federal Graduate PLUS Loan
- No Annual Limit
- Interest Rate = 6.84%
- Graduate PLUS loans are available to graduate students who are enrolled at least half-time in an eligible degree program. Graduate PLUS loans are funded by the Department of Education as part of the Direct Lending program.
- Graduate PLUS loans are not need-based, but are dependent on a credit check. If you have an adverse credit history, it is possible to obtain a co-signer.
- Graduate PLUS Loans begin to accrue interest from the time the loan disburses. Repayment begins 60 days after the loan is fully disbursed. However, you have the option to request an in-school deferment that allows you to postpone payments until 6 months after you graduate, stop attending school, or drop below half-time enrollment.
- There are no annual limits on Graduate PLUS loans. Graduate students can borrow up to the difference between the school's determination of their cost of attendance and other financial aid received.
- Please note that Federal Direct Stafford Loans have certain advantages over Graduate PLUS Loans, such as lower interest rates, and an automatic 6 month grace period after leaving school before repayment begins. Students are advised to accept their offered Federal Direct Stafford Loans before choosing to take out a Graduate PLUS Loan.
- Click here for more detailed information about Graduate PLUS Loans.
- Alternative Loans are available to students who are not eligible for federal loans or who need additional assistance beyond the financial aid that is offered to them. Alternative Loans are offered by private lenders who require the completion of their loan application process.
- Lenders typically require the Office of Financial Aid & Scholarships to certify the loan based on the student's enrollment information and their cost of attendance. Students can borrow up to the difference between the school's determination of their cost of attendance and other financial aid received.
- Click here for more detailed information on Alternative Loans.