Loans Available for Graduate Students
William D. Ford Federal Direct
Subsidized Loan
The William D. Ford Federal Direct Subsidized Loan is a federal loan program, serviced by the Direct Loan Servicing Center. This program provides need-based loans and requires students to have a Free Application for Federal Student Aid (FAFSA) on file. The interest rate is fixed, set annually by July 1, and capped at 8.25%. The federal government pays the interest on subsidized loans while students are enrolled in school and during a six-month grace period after graduation or withdrawal from school. There are several flexible repayment options offered.
William D. Ford Federal Direct
Unsubsidized Loans
William D. Ford Unsubsidized Federal Direct Loans are available to eligible students, regardless of family income or financial need. However, students must complete the FAFSA or the Renewal FAFSA to be considered for this program. A promissory note for this loan is completed with Financial Aid Services. The interest rate is fixed, set annually by July 1, but will never exceed 8.25 %. Interest payments for Unsubsidized Federal Direct Loans begin the day the loan is disbursed and can be paid monthly, quarterly, or capitalized (adding the interest to the loan principal). Students can receive subsidized and unsubsidized loans for the same loan period, although the combination of both cannot exceed the Direct Loan limits (link to IIB2b.MaxLoanLimits), and they must apply for the subsidized loan first.
Federal Direct Graduate PLUS Loan
The Federal Direct Graduate PLUS Loan program enables creditworthy graduate students to borrow directly from the federal government to help pay for their educational expenses. Students may borrow up to the cost of attendance minus financial aid. The interest rate is fixed and is set each year on July 1, but will never exceed 9%. PLUS Loans are disbursed directly to the student’s UMass Amherst account, generally in two installments. The program charges interest on the loan from the date the first disbursement is made until the loan is paid in full. To apply for a Graduate PLUS Loan students must file a Free Application for Federal Student Aid (FAFSA).
Borrowers of Federal Direct Graduate PLUS Loans begin repayment 60 days after the second disbursement. Graduate student borrowers may defer principal and interest payment, but must request a deferment for every term of enrollment by contacting the Direct Loan Servicing Center’s Borrower Services (800-848-0979). A choice of repayment options allows borrowers to repay the loan in a way that best suits their financial circumstances. Applications and detailed information on repayment options are available at Financial Aid Services.
Alternative Loans
Most graduate students at UMass Amherst finance their education through Direct Loans (subsidized and unsubsidized) and through Teaching Assistantships. However, whether or not you qualify for need-based financial aid, you may want to consider other programs to help finance all or part of your cost of to attend UMass Amherst. You should not apply for any of these programs until after you have applied for need-based financial aid and received a decision from Financial Aid Services.
Alternative loans are private forms of educational loans, available to supplement your financial aid up to the cost of attendance or to finance your entire cost of education. Private loans accrue interest from the day of disbursement and are paid back after graduation or leaving school.
The programs listed here provide a variety of options for meeting your financial needs. UMass Amherst does not endorse any individual alternative loan - you should compare programs and choose those that best fit your needs. In addition, these lists are not exhaustive, and you may find other loans that are a better match. Please visit the lenders Web sites to learn more about the terms, conditions, and benefits of these programs.
The MEFA Loan for Graduate Education
The MEFA is a low-cost, fixed-rate alternative loan offered at UMass Amherst and administered by the Massachusetts Educational Financing Authority (MEFA). Through the program, creditworthy students are able to borrow up to their cost of attendance minus other financial aid. Loans may be deferred for up to five years while enrolled at least half time in a degree-granting program. Repayment begins six months after graduation. For more information, visit the MEFA Web site or call 800-449-MEFA.
Nellie Mae® GRADUATE EXCEL® Loan
- Interest rate: Prime + 1.25% to Prime + 2.50%
- No fees when you apply with a co-borrower and make payments while enrolled at least half time
Visit the Nellie Mae Web site for more information.
Signature Student Loan®
- Interest rate: Prime - 1.0% to Prime + 6.00% based on credit review and co-signers
- Students may apply with or without co-signer and may borrow up to their cost of attendance minus other financial aid
- Interest accrues while the student is enrolled and capitalizes at the end of the 6-month grace period
- Highest credit rating determines interest rate
- Repayment begins six months after graduation or when borrower drops to less than half-time enrollment
- 0 to 3% repayment fees
Contact Signature customer service at 800-695-3317 or visit the Signature Web site.
Wachovia Education Loan
- Interest rate: Prime - 0.5% to Prime + 5.0%
- No fees with creditworthy borrower or co-borrower
Call Wachovia at 1- 800-338-2243 or visit the Wachovia Web site.
The Campus Door Alternative Loan
- Interest rate: Prime - 0.5% to Prime + 2.5%
- Origination fees of 0% to 5% based upon borrower and co-signer credit score
- Repayment begins twelve months after student graduates, or six months after student withdraws or attends school less than half time
- Repayment extends up to 20 years
Apply online at the Campus Door Web site or contact Campus Door Customer Service at 800-786-0002.
