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A loan is a type of financial aid that requires repayment. Some are based on financial need while others are not; however, the FAFSA is required to determine eligibility. For all of the following loans, students or parents will need to apply for each individual loan in order to consider these options. Federal student and parent loan information will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by the guaranty agencies, leaders, and schools determined to be authorized users of the data system.
Description: A FAFSA application must be completed before applying for this loan.
Type of Aid: Loan
Amount: Varies
Eligibility: Must be enrolled at least half-time as an undergraduate student. Eligibility based on the FAFSA.
Interest: 6.53% (2024-25 school year)
Loan Fee: 1.057%
Repayment: Repayment begins six months after student graduates, leaves school, or drops below half-time.
External Application: myfa.taylor.edu
Description: The unsubsidized loan is a non-need based loan with eligibility determined through the FAFSA. Interest begins to accrue at the time of disbursement and is the responsibility of the student.
Type of Aid: Loan
Amount: Varies
Eligibility: Must be enrolled at least half-time. Eligibility based on the FAFSA.
Interest: 6.53% for undergraduates and 8.08% for graduate students (2024-25 school year)
Loan Fee: 1.057%
Repayment: Repayment begins six months after student graduates, leaves school, or drops below half-time.
External Application: myfa.taylor.edu
Description: The PLUS Loan is a non-need based loan with eligibility determined through the FAFSA. It is available to parents or step-parents of undergraduate students or to graduate students to help pay for educational expenses up to the cost of attendance minus other financial aid. Interest starts to grow once the loan is disbursed.
The PLUS loan for undergraduate students is in the parent’s name only. If the parent is denied the PLUS loan after the adverse credit review by the U.S. Department of Education, the student is eligible to request additional Federal Direct Unsubsidized Loan up to the annual limit.
Type of Aid: Loan
Amount: Varies
Eligibility: Available only to parents or step-parents of student of undergraduate students or to graduate students.
Interest: 9.08% (2024-25 school year)
Loan Fee: 4.228%
Repayment: Repayment begins 60 days after the last disbursement. The payment can be deferred until after graduation if requested.
External Application: studentaid.gov
Description: This is a private student loan through the Questa Foundation. Students must apply and be approved through the Questa Foundation. Scholars could receive up to 75% of their loan forgiven.
Type of Aid: Loan
Amount: Varies
Eligibility: Must be from one of the 12 counties of northeast Indiana (Adams, Allen, DeKalb, Grant, Huntington, LaGrange, Kosciusko, Noble, Steuben, Wabash, Wells, and Whitley) and be approved through Questa application process. Must meet Questa Foundation rules for loan forgiveness.
Repayment: Refer to terms of the individual loan.
External Application: Apply through Questa Foundation.
Description: A private student loan is a financing option through private entity (bank, credit union, nonprofit organization) designed to help a student cover their educational costs after exhausting all grants and scholarships, as well as student employment and federal loan options. Private loans typically require a cosigner to qualify, and eligibility typically determined by applicant/cosigner credit score, income and debt-to-income ratio.
Taylor University has a strict code of conduct for all employees involved in the processing of student and parent loans. This code of conduct prohibits:
Type of Aid: Loan
Amount: Varies
Eligibility: Private loans typically require a cosigner to qualify, and eligibility is determined by applicant/cosigner factors like credit score, income and debt-to-income ratio.
Interest: Variable or Fixed
Fees: None
Repayment: Refer to terms of the individual loan.
Application: We will process a loan from any lender a student chooses, however we do encourage students and families to shop and compare rates on private student loans. The INvestEd Student Loan Marketplace helps borrowers compare actual rates from multiple lenders in one place with a soft credit pull. There is no cost to use the tool, and it may help you find the right loan for you.
The federal loan is awarded to those students who file the FAFSA form. Repayment of the federal loan begins 6 months after graduation or the student drops below half-time status and the standard repayment period is 10 years. The maximum loan eligibility depends on the student’s grade level. Dependent Freshmen can receive up to $5,500, sophomores can receive up to $6,500, and juniors and seniors can receive up to $7,500. This base amount of loan may be split between subsidized and unsubsidized loans based on the financial need of the student. Independent students qualify for an additional $4,000 unsubsidized loan during freshman and sophomore years and $5,000 during junior and senior years. Graduate students can receive up to 20,500 of unsubsidized loan each academic year. Both undergraduate and graduate students also must stay below federal aggregate loan limits.
The federal loan consists of subsidized and unsubsidized loans.
Federal Subsidized Loan: Available to undergraduate students with financial need based on the FAFSA calculation. The interest rate for the 2024-25 academic year is a fixed 6.53%, and the loan fee is 1.057%. The maximum subsidized portion of a loan for freshmen is $3,500, sophomores is $4,500, juniors and seniors is $5,500.
Federal Unsubsidized Loan: The unsubsidized loan is not based on need but a FAFSA is required to determine the student’s need level. The interest rates for the 2024-25 academic year is 6.53% for undergraduate students and 8.08% for graduate students. The loan fee for both is 1.057%.
For the subsidized federal loan, the federal government pays the interest on the loan while you are in school or drop below half-time status. You are not responsible for any interest on the loan while in school at least half-time. For the federal unsubsidized loan, interest will begin accruing once the loan is disbursed. You can choose to pay the interest or defer it until after you finish school or drop below half-time enrollment. Deferring does mean your overall loan amount will increase due to interest growth.
The student may apply for the federal loan in their name by first filing the FAFSA each year, then once awarded, going to myfa.taylor.edu and completing the document in the loan request(s) section. If you are a first-time borrower, you will also need to complete loan entrance counseling and a master promissory note. Both are completed online at studentaid.gov after logging in with your FSA ID.
The Federal PLUS Loan is in the parent’s name only, so they are responsible for repayment. For the 2024-25 school year, the loan has a fixed interest rate of 9.08% and a 4.228% fee.
Repayment begins within 60 days of the final disbursement or can be deferred until after the student graduates or drops below half-time enrollment. The standard repayment term is 10 years. The parent may apply for the Federal PLUS Loan by logging into studentaid.gov with their FSA ID.
If the parent either cannot or does not feel comfortable borrowing the parent loan, students can pursue private student loans through a bank of their choice. Students should exhaust all federal aid and direct loan opportunities before considering this type of loan, and should keep in mind that most alternative loans require a cosigner. We recommend finding a credit-worthy cosigner in order to keep interest rates as low as possible.
Private student loans are an option through banks, credit unions and nonprofit organizations designed to help students cover their remaining costs after scholarships, grants and federal loan options. Decisions are based on credit history, income and debt-to-income ratio, thus typically require a credit worthy cosigner. We suggest students and cosigners shop and compare rates when reviewing their options. The INvestEd Student Loan Marketplace helps borrowers compare ACTUAL rates from multiple lenders in one place with a soft credit pull. There is no cost to use the tool, and it may help you find the right loan for you.
Be wary of any loan offer that you do not initiate. Direct to Consumer Loans are generally unsolicited loan offers sent directly to the student or parent. These loans have higher fees and higher interest rates than the federal loan programs, and most likely higher than other school certified private student loans. IMPORTANT NOTE: DTC loans typically do not require school certification; however, once the school is aware of the loan the school is required to include the amount as a resource and this loan will reduce eligibility for more desirable federal, state and institutional aid programs, including the loss of grant aid. It is always wise to contact the Financial Aid Office at 765-998-5358 before pursuing an educational loan such as an private student loans or a Direct to Consumer Loan.
Taylor University participates in the Direct Loan Program. The Federal Government is your lender. There are several steps you may be required to do for each loan, so make sure you read and follow the instructions associated with each loan.
You may apply by following the link associated with each loan at myfa.taylor.edu. Taylor University electronically transmits loan data and receives your loan disbursements via EFT through the Direct Loan Program. The Student Accounts Office will email a receipt once the funds have been credited to your student account.
Only you can determine how much you can afford to borrow to cover your educational costs. Generally, financial planners recommend that you borrow no more than your anticipated annual first year salary or that your anticipated monthly loan repayment not exceed 8-10% of your anticipated monthly take-home pay. There are loan interest and repayment calculators at studentaid.gov to assist you in your financial planning.
For the class of 2023-24, 58% of the graduates borrowed from one student loan program (federal loan, Taylor loan, and/or private loan) for an average indebtedness of $26,015.