Loans

Committed to making your education affordable

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. RBHS students must complete an additional application for financial aid to be eligible.

NOTE: This information is subject to change without notice. Further changes to laws or regulations may make some of the information incomplete or inaccurate.

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 charge 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.

Perkins Loan

NOTE: As of December 18, 2015, the Federal Perkins Loan Program has been extended with some restrictions.

The Federal Perkins Loan is a fixed 5% interest rate loan for undergraduate and graduate students who demonstrate financial need. Rutgers University is the lender. The loan is made with government funds with a share contributed by Rutgers.

Depending on when you apply, your level of need, and the funding Rutgers receives, an eligible student may borrow up to $3,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000 if you have completed two years of undergraduate work; otherwise, the total you can borrow is $8,000).

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