Skip navigation

IONA College Logo | Go to Home Page

Loans

  • What is the difference between subsided and unsubsidized loans?

    Here’s a quick overview of Direct Subsidized Loans:

    • Direct Subsidized Loans are available to undergraduate students with financial need.
    • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
    • The U.S. Department of Education pays the interest on a Direct Subsidized Loan
    • while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).

    Here’s a quick overview of Direct Unsubsidized Loans:

    • Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
    • Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
    • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
    • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
  • What is the maximum amount of loans (between subsidized and unsubsidized) that a student can take out in one year?

    The amount available varies by grade level.  Details can be found here.

  • What do I need to do to receive a Federal Direct Student Loan?

    All applicants must first file a FAFSA, and must submit all requested documentation before financial aid and student loan eligibility can be determined. Every student will need to complete an electronic Federal Direct Loan Master Promissory Note (MPN), which is available at StudentLoans.gov.

    All first time Federal Loan borrowers will also need to complete entrance counseling at StudentLoans.gov.

  • How does a graduate student apply for a Federal Direct PLUS loan?

    Graduate PLUS applications are scheduled to be available in June at StudentLoans.gov. Please check back on our website for any updates.

    All applicants must complete a Direct Graduate PLUS Master Promissory Note (MPN). In addition all new borrowers must complete a graduate PLUS Entrance Counseling. You will need your Federal Student Aid ID (FSA ID) to complete both at StudentLoans.gov.
     

  • How does a parent apply for a Federal Direct parent PLUS loan?

    Parent PLUS loan applications are scheduled to be available in June at StudentLoans.gov. Please check back on our website for any updates.

    All applicants must complete a Direct PLUS Master Promissory Note (MPN). The parent will need their FSA ID to complete the MPN at StudentLoans.gov.

  • Where can I go to understand all the terms of my loans and my repayment responsibilities before and after I borrow?

    Visit studentaid.ed.gov/repay-loans/understand/plans/ to get information about your loan repayment.
  • Will I be sent a loan application if my financial plan summary includes a Federal Parent (PLUS) Loan?

    Eligibility for the PLUS loan is determined by completing the Direct Loan Parent PLUS application, which is available at studentloans.gov.
  • What should I do if my parent(s) apply and are denied the Federal Parent (PLUS) Loan?

    If we receive notification from the federal government that your application for a parent PLUS has been denied, you will be awarded the maximum unsubsidized eligibility for which you are eligible.