Important:
The Department of Education has a webpage dedicated to answering frequently asked questions regarding the Student Loan Debt Relief Plan. Since all parts of the plan are being administered by the Department of Education, we suggest you visit the page below for further information: https://studentaid.gov/debt-relief-announcement/
Important:
If you would like to be notified by the U.S. Department of Education when there are any federal student loan updates, you may sign up at their subscription page linked below:
https://www.ed.gov/subscriptions
Important:
The White House has also released a fact sheet containing data related to the debt relief and extension of the loan repayment pause which is available below:
https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/
Loans
Rutgers students and their families may find they need to take loans as a supplemental way to finance their education. There are a number of different types of loans available. It’s important to consider all of the options and find the loan that makes the most sense to you.
When you complete the Free Application for Federal Student Aid (FAFSA), you are applying for all of the aid programs for which you may be eligible, including direct loans.
Rutgers University adheres to a student loan code of conduct, set forth in the Higher Education Opportunity Act (HEOA) signed into law on August 14, 2008.
Federal Direct Loans
Rutgers University participates in the William D. Ford Federal Direct Loan Program, where students borrow directly from the federal government. Unsubsidized loans are not based on financial need, and interest is charged from the date of disbursement. Subsidized loans are based on financial need, and no interest is charged while a student is in school at least half-time, during the grace period, and during deferment.
No separate application from a bank or other lender is needed to receive Direct Stafford Loans.
The William D. Ford Federal Direct Loan Program includes:
- Direct Stafford Loans
- Federal Direct PLUS Loans
- Federal Direct Grad PLUS Loans
PLUS Loans
PLUS Loans are a part of the William D. Ford Federal Direct Loan Program, where students borrow directly from the federal government. No separate application from a bank or other lender is needed to receive PLUS Loans.
Federal Direct PLUS Loans are available to parents of dependent students, and Federal Direct Grad PLUS Loans are available for graduate/professional degree students.
Private Loans
A private educational loan is a non-federal educational loan, through a private lending institution, typically issued in the student’s name. Each lender has different eligibility requirements (e.g., degree status, enrollment status, and U.S. citizenship status), loan rates, repayment terms, and conditions. Some lenders may also require payment of interest while students are in school.