Loans

Unlike grants and scholarships, loans accrue interest and must be repaid either while attending school, after graduation, or if you withdraw. Different types of student loans include federal, state, institutional, and alternative (bank) loans. Each type may have different terms and conditions associated when borrowing money for educational purposes.

Federal Direct Student Loans

Federal Direct Student Loans are available through the William D. Ford Federal Direct Student Loan Program. All students who complete the FAFSA and are eligible to receive Federal Student Aid may receive the Federal Direct Student Loans. This loan may be Subsidized or Unsubsidized. Student eligibility is determined by cost of attendance and FAFSA results. Students must enroll at least half time (6 hours for undergraduate students or 4 hours for graduate students) to receive Federal Student Loans.

Federal Direct Parent Loan for Undergraduate Students

Federal Direct PLUS Loans: Loans that parents can borrow for students to use to meet their cost of education. Eligibility for PLUS Loans are limited to cost of attendance minus other financial aid. Applicants must complete a Parent PLUS Loan Information Sheet. PLUS loan applicants are submitted for credit review. Applicants with adverse credit history will be denied. These applications are available in the Financial Aid Office or can be submitted online, for more information to apply on-line.

Types of Federal Student Loans

Direct Subsidized Loans

Are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time (6 credit hours), during the grace period and during deferment periods. The student must submit their acceptance of the loan offered via their award letter or by signing a Direct Loan Request Form.

Direct Subsidized	Direct Unsubsidized	Direct PLUS Loans
Are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time (6 credit hours), during the grace period and during deferment periods. The student must submit their acceptance of the loan offered via their award letter or by signing a Direct Loan Request Form.	Are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The student must be enrolled at least part time (6 credit hours) and submit their acceptance of the loan offered via their award letter or by signing a Direct Loan Request Form.	Are unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

Student Debt Relief

On August 24, 2022, President Biden announced that the US Department of Education will implement a three-part plan to assist loan borrowers. This plan includes a final extension of the student loan repayment pause through December 31, 2022. It will provide loan forgiveness to borrowers with an individual income of $125,000 or $250,000 for households. Loan forgiveness applies only to loans fully disbursed by June 30, 2022. If the U.S. Department of Education doesn’t have your income data, a simple application will be available soon. To be notified when the application is available, sign up at https://www.ed.gov/subscriptions. Finally, simplification of income-based repayment plans have been proposed that will substantially reduce future monthly payments for eligible borrowers. Please visit https://studentaid.gov/debt-relief-announcement/ for the most up-to-date information.

Additional Loans

Nurse Education Assistance Loan Program (NEALP)

The Nurse Education Assistance Loan Program (NEALP) was created by the Ohio General Assembly in 1990. The purpose of NEALP is to assist the state in meeting nursing shortages by providing financial assistance to Ohio students enrolled for at least half-time study (or accepted for enrollment) in approved Ohio pre-licensure nurse education program who intend to serve as nurses after graduation. NEALP provides up to $3,000 per year. In exchange, to qualify for loan cancellation, recipients must be employed full-time as a registered nurse or licensed practical nurse in the State of Ohio for a minimum of five years after graduation.

NEALP Awarding

Applicants will be awarded NEALP funding based on information received from the applicant’s institution, FAFSA data, and information from the NEALP application. Applicants are ranked based on FAFSA data; those that demonstrate the highest level of need are awarded first. Awarding continues from the next neediest student until funds are depleted for the year. If sufficient funds are available, as determined by the Ohio Board of Regents, loan assistance will be awarded to all eligible applicants.

NEALP Eligibility

Be an Ohio resident.
Be a U.S. citizen or a permanent resident.
Be enrolled in or be accepted for enrollment approved nurse education programs in Ohio colleges, universities, hospitals, or vocational schools.
Not be in default or owe a refund to any Federal Financial Aid program.
Maintain an academic record which places the student in good academic standings within the institution.

NEALP Deadline

Students may apply after January 1 and before July 15th of each year. Notification of acceptance or denial for NEALP funding will be sent by the first week in September.

More Information

Alternative Student Loans

In some cases, students need additional money to cover the costs of education after all federal, state, and institutional aid have been exhausted. For these students there are several alternative student loan options available. These loans are not guaranteed loans and often require a co-signer, and may require school certification. Interest starts accruing on alternative loans upon the first disbursement. Repayment starts either 6 months after graduation, or on the date the student leaves the institution.

Alternative or private student loans can be a suitable option for students seeking other means outside of Federal Student Aid in which to pay for their cost of education. It is the student’s sole responsibility to apply for and follow the appropriate steps in order to secure funding through an alternative loan. Alternative loans are credit based and may require that a student be enrolled at least half time (6 credit hours). Before the student applies for a private student loan, the student should exhaust all federal loan options first. Federal student loans are typically less credit restricted and offer flexible payment options.

In accordance with 34 CFR 668.14(b)(29)(ii), an institution must, upon the request of the applicant, discuss the availability of Federal, State, and institutional financial aid. Staff members in Rio Grande’s Office of Financial Aid are happy to discuss with students and prospective students, and their parents, the financial aid options available to them. Students and parents may qualify for loans or other assistance under Title IV of the Higher Education Act programs. The terms and conditions of Federal loan programs may be more favorable than the provisions of private educational loans.