About Your Loans

You should have a good idea of how much you may need to borrow. Remember: Don’t borrow unless it is absolutely necessary. Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover college costs. The result is lower debt and easier-to-manage loan payments after graduation.
To cancel or reduce your loans please contact the financial aid office.

Note to undergraduate RHIT students approaching graduation: If you are enrolled less than full-time during your final term, you may not be eligible to receive the full, annual maximum federal loan limit. Your loan eligibility may be subject to proration. Consult with an aid officer to discuss your specific situation or if you have questions.

Subsidized vs. Unsubsidized
The Subsidized Federal Direct Loan is a need-based loan, while the Unsubsidized Federal Direct Loan is not. Students borrowing with a Subsidized Loan are not assessed interest on the loan while they are enrolled at least half-time. Students borrowing with an unsubsidized loan are assessed interest while they are enrolled in school, but payment of the interest typically is deferred until loan repayment begins. A student may pay interest while enrolled, which will result in lower loan repayments over the life of the loan and a lower long-term cost of the loan.
Because Federal Direct Loan awards have origination fees, the actual Direct Loan amounts applied to your RHIT student account will be lower than those listed on your Award Notification.

Direct Subsidized Loan Time Limitation
Effective July 1, 2013, first-time and new Federal Direct Subsidized Loan borrowers are limited in the amount of time they qualify for an interest subsidy. Students who have exceeded 150 percent of the published length of their current educational program will be:

  • Ineligible for additional Federal Direct Subsidized Loan (though you may borrow a Federal Direct Unsubsidized Loan) and
  • Responsible for interest on all loans accruing after exceeding the 150 percent limit.

New borrowers are defined as students with no outstanding federal loan principal balance when they take out a new loan after July 1, 2013. Transferring between programs does not reset loan eligibility. Interest not paid will be capitalized, effectively increasing your loan principal upon repayment.

PLUS (Parent) Loan and Grad PLUS Loan
The Federal Direct PLUS (Parent) Loan and Grad PLUS Loan are intended to assist families who are not eligible for other types of financial aid, who have remaining financial need after other forms of financial aid have been awarded, or who are not eligible to receive need-based aid. For PLUS Loans, the borrower is the parent of the dependent undergraduate student; for Grad PLUS Loans, the borrower is a graduate student. To apply for a PLUS or Grad PLUS Loan, the borrower needs to go to  www.studentloans.gov to fill out the application. File a FAFSA before applying for the PLUS Loan, and you must reapply for the PLUS Loan or Grad PLUS Loan each year.
The maximum amount that can be borrowed each year is the Cost of Attendance minus all other financial aid awarded.

PLUS Loan Eligibility Sample

 $55,000 Cost of Attendance/Budget
- 20,000 Total Financial Aid Awards
 $35,000 PLUS Loan Eligibility

Private Loan

If you have considered all of these options and you feel that you need additional financing to meet your educational costs, learn more about  private loan options
Apply for private loans separately, compare rates and terms with the PLUS and Grad PLUS loans and consider their repayment terms. 
LOAN REPAYMENT EXAMPLE: 10 yrs. (120 months.) 

If you borrow $10,000 at 3.86 percent interest, you will need to pay $101 a month for 10 years to pay off your loan.

Loan Amount  

Monthly Payment  



3.86% Interest  


5.41% Interest  


6.41% Interest  




































If you are borrowing federal Direct loans you can view how much you have borrowed to date from each program by going to www.studentaid.gov.
For a simple loan repayment calculator, visit www.studentaid.ed.gov.

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