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Types of Financial Aid

OVERVIEW

AUA is approved by the U.S Department of Education (ED) to participate in the William D. Ford Federal Direct Loan Program, which is the largest student loan program in the US. Under this program, ED is your lender; ED will assign your loan to a loan servicer after your loan amount is first disbursed (paid out). Your loan servicer will contact you after the first payment is made to you. At AUA you may borrow from the following two types of Direct Loan Programs:

  • Direct Unsubsidized Loans are loans made to eligible, graduate, and professional students; students do not need to demonstrate financial need to be eligible for this loan.
  • Direct PLUS Loans are loans made to graduate or professional students to help pay for educational expenses not covered by other financial aid.

AUA also awards 18 different scholarshipsCanadian students may also apply for Canadian federal and provincial loans as well as participate in Canadian grant programs.

FEDERAL DIRECT UNSUBSIDIZED LOANS
  • Direct Unsubsidized Loans are available to graduate students; there is no requirement to demonstrate financial need.
  • AUA determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
  • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
  • If you choose to not pay the interest while you are in school and during grace, deferment, or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

For additional information on Federal Direct Unsubsidized loans, please click here.

INTEREST RATES

The interest rate varies depending on the loan type and the first disbursement date of the loan. The table below provides interest rates for Direct Unsubsidized Loans first disbursed on or after July 1, 2015.  Click here for more information on interest rates.

Interest Rates for Direct Unsubsidized Loans
Loan TypeLoans first disbursed on or after 7/1/19 & before 7/1/20Loans first disbursed on or after 7/1/18 & before 7/1/19Loans first disbursed on or after 7/1/17 & before 7/1/18Loans first disbursed on or after 7/1/16 & before 7/1/17Loans first disbursed on or after 7/1/15 & before 7/1/16
Direct Unsubsidized Loans6.08%6.60%6%5.31%5.84%

ORIGINATION FEES

Federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received. Click here for more information on origination fees.

The chart below shows the loan fees for Direct Unsubsidized Loans first disbursed on or after Oct. 1, 2015.

 

Loan TypeFirst Disbursement DateLoan Fee
Direct
Unsubsidized Loans
On or after 10/1/19 and before 10/1/201.059%
On or after 10/1/18 and before 10/1/191.062%
On or after 10/1/17 and before 10/1/181.066%
On or after 10/1/16 and before 10/1/171.069%
On or after 10/1/15 and before 10/1/161.068%

LOAN LIMITS

There are limits on the amount in unsubsidized loans you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow in your lifetime (aggregate loan limits). Remember the following:

  • The first limit or cap is on the amount of Direct Unsubsidized loans that a student may borrow in each award year; that limit is $20,500.
  • The second limit or cap is on the amount that a student may borrow in Federal Direct loans in the aggregate. (This includes not only the amount of Direct Unsubsidized loans that the student obtained during his/her education at AUA but the amounts of any Direct loans whether Subsidized, Unsubsidized or Federal Family Education Loan (FFEL), that the student may have received at any other institution or educational program, undergraduate, graduate, non-degree granting or otherwise). The aggregate limit is $138,500.
  • The third limit or cap on the amount of Direct Unsubsidized loans that a student may obtain is the amount of AUA’s Cost of Attendance per semester in which the loan is obtained minus the amount of “Estimated Financial Aid” that a student may receive to pay the Cost of Attendance for that semester.

Estimated Financial Aid includes but is not limited to:

  • Other federal financial aid
  • Scholarships/grants
  • Private loans

For more information on what is included in the “Estimated Financial Aid,” click here.

REPAYMENT

Learn more about repayment options for Direct Unsubsidized Loans via the federal student aid website.

Grace Period:

Repayment (generally) begins six months after the student graduates, withdraws, or is dismissed from AUA. This time frame is known as the grace period. The standard repayment period is ten years from the date the loan goes into repayment.

Interest Rates:

You are responsible for interest payments on Direct Unsubsidized loans while you are in school. Interest begins accruing after your first disbursement. You may pay the interest monthly while you are still in school or the interest will accrue and be capitalized (added to the principal amount of the loan). When the loan goes into repayment, with capitalization, you will pay interest on the original amount of the loan plus the amount of interest that accrued from the first date the loan was disbursed until the loan is repaid.

FEDERAL DIRECT GRADUATE PLUS LOANS
  • The US Department of Education is your lender.
  • You must not have an adverse credit history.
  • The maximum loan amount is the cost of attendance (determined by AUA) minus any other financial aid received.

For additional information on Federal Grad Plus loans, please click here.

INTEREST RATES

The interest rate varies depending on the loan type and the first disbursement date of the loan. The table below provides interest rates for Direct PLUS Loans first disbursed on or after July 1, 2015. Click here for more information on the interest rates.

Interest Rates for Direct PLUS Loans
Loan Type Loans first disbursed on or after 7/1/19 & before 7/1/20Loans first disbursed on or after 7/1/18 & before 7/1/19Loans first disbursed on or
after 7/1/17 & before 7/1/18
Loans first disbursed on or
after 7/1/16 & before 7/1/17
Loans first disbursed on or after 7/1/15 & before 7/1/16
Direct PLUS Loans7.08%7.60%7%6.31%6.84%

ORIGINATION FEES

Federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re still responsible for repaying the entire amount you borrowed and not just the amount you received.

The chart below shows the loan fees for Direct PLUS Loans first disbursed on or after Oct. 1, 2015. Click here for the most updated loan fees.

Loan TypeFirst Disbursement DateLoan Fee
Direct
Plus Loans
On or after 10/1/19 and before 10/1/204.236%
On or after 10/1/18 and before 10/1/194.248%
On
or after 10/1/17 and before 10/1/18
4.264%
On
or after 10/1/16 and before 10/1/17
4.276%
On
or after 10/1/15 and before 10/1/16
4.272%

LOAN LIMITS

At AUA the Direct Grad PLUS loan amount you may borrow is limited only by the Cost of Attendance for the semesters for which the loan is obtained minus the “Estimated Financial Aid” you receive during those semesters.

Estimated Financial Aid includes but is not limited to:

  • Other federal financial aid including any Direct Unsubsidized loans that you may obtain for the term
  • Scholarships/grants
  • Private loans

For more information on what is included in the “Estimated Financial Aid,” click here.

REPAYMENT

Grace Period:

When you receive a Direct PLUS Loan as a graduate or professional student, you don’t have to make any payments while you’re enrolled in school at least half-time, and for an additional six months after you graduate, leave school, or drop below half-time enrollment. 

Interest Rates:

During any period when you’re not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.