Student Loans

Types of Federal Loans

There are three types of federal student loans. 

1. Subsidized Loans

Direct Subsidized Loans are made to eligible undergraduate students who demonstrate financial need to help cover higher education costs at a college or career school. No interest is charged while you're enrolled at least half-time or during deferment.

The amount you can borrow each term depends on how many credits you’re enrolled in. If you're enrolled full-time (12+ credits), you may be eligible to receive the highest loan amounts possible. If you're enrolled in fewer credits, you will be eligible for a percentage of the highest loan amounts. For instance, if you're enrolled half-time (6 credits), then you may be eligible to receive 50% of the annual loan limit. 

2. Unsubsidized Loans

Direct Unsubsidized Loans are made to eligible undergraduate, graduate and professional students. Eligibility is not based on financial need. Interest starts accruing immediately, while you're in school. You can choose to pay interest as it accrues or let it be added to your loan balance.

The amount you can borrow each term depends on how many credits you’re enrolled in. If you're enrolled full-time (12+ credits), you may be eligible to receive the highest loan amounts possible. If you're enrolled in fewer credits, you will be eligible for a percentage of the highest loan amounts. For instance, if you're enrolled half-time (6 credits), then you may be eligible to receive 50% of the annual loan limit.

 

3. Parent PLUS Loans

Direct PLUS Loans are made to parents of dependent undergraduate students to help pay for educational expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify. 

The amount you can borrow each term depends on how many credits you’re enrolled in. If you're enrolled full-time (12+ credits), you may be eligible to receive the highest loan amounts possible. If you're enrolled in fewer credits, you will be eligible for a percentage of the highest loan amounts. For instance, if you're enrolled half-time (6 credits), then you may be eligible to receive 50% of the annual loan limit. 

These are the borrowing limits for Parent PLUS loans as of July 1, 2026:

• parent can borrow up to $20,000 per year for each student
• total borrowing limit is $65,000 per student 

How to Apply for Federal Student Loans

Follow the instructions in the Steps to File Your FAFSA and Maintain Financial Aid on PBSC's Financial Aid homepage. 

How to Accept/Decline Loans

Students who file a FAFSA form and apply for financial aid will see loans they are eligible for in their financial aid awards tab in Workday. Loans can be accepted or declined in Workday. Watch the Workday Student video on PBSC’s Financial Aid TV channel to learn more. 

Before your federal loan funds can be disbursed, you will be required to complete the following:

• Complete entrance counseling, a tool to ensure you understand your obligation to repay the loan.
• Sign a Master Promissory Note, agreeing to the terms of the loan.

First-Time Borrower 30-Day Delay

Federal rules require a 30-day waiting period before your first loan is disbursed if you are a first-time borrower.

A private education loan (also known as an alternative student loan) is a non-federal loan that can be used to pay for school once you have exhausted other forms of free and federal financial aid.

Like a federal student loan, an alternative student loan can be used to pay for college costs, but it comes from a bank, credit union or other lender rather than the federal government.

Private education loans usually are more expensive (with higher interest rates and fees) than government student loans. They also can be more difficult to qualify for, compared with federal student loans, and they usually require a credit-worthy cosigner. During repayment, private education loans generally have less flexible repayment options and aren't eligible for federal loan forgiveness programs.

Private education loans are best used only as a “last resort” option after maxing out federal student loans.