Loan types and amounts - undergraduate students
Before completing a loan application, you will need to determine whether you are a dependent or an independent undergraduate and this will establish which loan types and amounts you are eligible to borrow. Definitions are below, but if your circumstances are unusual and you need advice, please contact us at us.loans@admin.ox.ac.uk.
Independent: For the purposes of federal aid, a student is considered independent if he or she meets one or more of the following criteria:
- The student is at least 24 years old by December 31 of the award year.
- The student is an orphan or ward/dependent of the court, or was a ward/dependent of the court until he or she reached age 18.
- The student is a veteran of the U.S. Armed Forces
- The student is working on a master's or doctorate programme at the beginning of the award year for which the FAFSA is completed.
- The student is married as of the date the FAFSA is completed.
- The student has at least one child who receives more than half of his or her support from the student.
- The student has a dependent, other than a spouse or a child, who lives with the student and receives more than half of his or her support from the student at the time the FAFSA is completed and through June 30 of the award year.
Dependent: The student is considered dependent if he or she does not meet any of the preceding criteria for an independent student unless the financial aid administrator determines that the student is independent on the basis of special circumstances and performs a dependency override.
Loan types:
| Direct subsidized loan (federal) | Direct unsubsidized loan (federal) | Parent PLUS loan (federal) | Private loan | |
|---|---|---|---|---|
| Who is eligible? | Most US citizens (or eligible non-citizens) on full-time undergraduate courses.* Available to dependent and independent students who demonstrate financial need. | As for subsidised loans, but not based on financial need. | Parents of dependent students. A parental credit check is required. | Most US citizens enrolled in programs the lender considers eligible. Good credit history is necessary. A co-signer may be required. |
| How do repayments work? | No interest or payments as long as you are enrolled on an eligible programme at least half-time. | No payments as long as you are enrolled on an eligible programme at least half-time. Interest accrues whilst you are studying. | No payments as long as student is enrolled on an eligible programme at least half-time. Interest accrues whilst you are studying. | Loans are not part of federal programs, so repayment options may vary. |
| When do repayments start? | Usually six months (known as the ‘grace period’) after your course finishes or you become less than half-time. | As for subsidised loans | In most cases, about 30 days after your course finishes. | Variable. Repayment options tend to be less flexible than for federal loans. |
* Some courses are not eligible for federal loans. Please read our Loan Eligibility page before starting your loan application.
Loan amounts:
Federal and/or private loans can usually cover the total cost of fees and living expenses for the duration of your studies. Origination and default fees (sometimes up to 4%) will be deducted from your gross loan award and you should take this into consideration when requesting how much to borrow. A Cost of Attendance worksheet should be completed by all students applying for US loans. This will calculate the loan amount that you are entitled to. Please see our How to Apply page for details on how to obtain this worksheet.
DEP – dependent
IND – independent
COA = cost of attendance
| Direct Subsidized loan (federal) | Direct Unsubsidized loan (federal) | Parent PLUS Loan (federal) | Private loan | |
|---|---|---|---|---|
| Maximum amount per year: | Year 1: $3,500 DEP $3,500 IND Year 2: $4,500 DEP $4,500 IND Year 3 and up: $5,500 DEP $5,500 IND |
Year 1: $2,000 DEP $6,000 IND Year 2: $2,000 DEP $6,000 IND Year 3 and up: $2,000 DEP $7,000 IND |
Total amount remaining after all other aid/loans have been deducted from COA | Total amount remaining after all other aid/loans have been deducted from COA |
| Aggregate loan limit (how much you can borrow over your lifetime): | $23,000 DEP $23,000 IND | $31,000 DEP (sub and unsub combined) $57,500 IND (sub and unsub combined) |
None | Depends on lender |
| Origination and Default fee: | 1% for loans first disbursed before 1st July 2013. 1.051% for loans first disbursed on or after 1st July 2013. |
1% for loans first disbursed before 1st July 2013. 1.051% for loans first disbursed on or after 1st July 2013. |
4% for loans first disbursed before 1st July 2013. 4.204% for loans first disbursed on or after 1st July 2013. |
Depends on lender |
| Interest rate: | 3.86% (for loans first disbursed on or after 1st July 2013) | 3.86% (for loans first disbursed on or after 1st July 2013) | 8.5% | Variable depending on lender and credit rating Typically higher than federal loan rates |