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Loans

Student loans are long-term, low-interest, borrowed funds that you must repay after you graduate or cease to be enrolled in your declared program at least half-time (six or more credit hours). Subsidized and unsubsidized federal loans are the most common type of student loan, with loans for parents and private loans also available.

If you receive a loan offer as part of your financial aid package and wish to accept it, you must follow the formal loan acceptance procedure. Before you borrow anything, be sure to carefully assess how much money you need to fund your education.

If you have questions about loans or other forms of financial aid at EFSC, please contact the Financial Aid Office.

How to Apply for Loans

When you complete the FAFSA, EFSC will automatically consider you for subsidized and unsubsidized Federal Direct Stafford Loans. Because your financial situation can change, you must reapply for financial aid each academic year.

Parents can apply for Direct PLUS Loans through the Federal Student Aid website. If you are seeking a private loan, you must apply directly through the individual lender.

Types of Loans

Federal Direct Subsidized Stafford Loan (FDSSL)

Federal Direct Subsidized Stafford Loans (FDSSL) are long-term, need-based loans that are available to undergraduate students at variable interest rates. Interest on FDSSLs does not accrue while you are enrolled at least half-time (six or more credit hours).

How Much Can I Borrow?

There are limits on the amount of FDSSL funding you are eligible to receive each academic year (the annual loan limit) and the total amount that you may borrow for undergraduate study (the aggregate loan limit). These vary depending on what year you are in school and whether you're a dependent or independent student:

EFSC's FDSSL Limits
Table Caption
  1st Year in Program Annual Loan Limit 2nd Year in Program
Annual Loan Limit
   Aggregate
Loan Limit
Dependent Students $3,500 $4,500 $23,000
Independent Students $3,500 $4,500 $23,000

Annual and aggregate loan limits increase when you have completed 30 credit hours, so students pursuing a bachelor's degree may be eligible for additional aid.

Acceping an FDSSL

If you receive an FDSSL offer as part of your EFSC financial aid package and wish to accept it, you must follow the formal loan acceptance procedure, which includes reviewing and agreeing to the loan through the myEFSC portal, completing an online entrance counseling session, and signing a Master Promissory Note (MPN).

Repaying an FDSSL

Repayment on FDSSL loans begins six months after you graduate (the end of the grace period), when you drop to less than half-time enrollment, or when you withdraw from college completely. Additional information on this will be provided during your mandatory entrance counseling, as well as during your exit counseling, which you must complete when you leave school or enroll in fewer than six credit hours.

Federal Direct Unsubsidized Stafford Loan (FDUSL)

Federal Direct Unsubsidized Stafford Loans (FDUSL) are long-term, non-need-based loans with variable interest rates. Interest on FDUSLs begins accruing upon disbursement.

How Much Can I Borrow?

There are limits on the amount of FDSSL funding you are eligible to receive each academic year (the annual loan limit) and the total amount that you may borrow for undergraduate study (the aggregate loan limit). These vary depending on what year you are in school and whether you're a dependent or independent student:

EFSC's FDUSL Limits

Table Caption
  1st Year in Program
Annual Loan Limit
2nd Year in Program
Annual Loan Limit
Aggregate
Loan Limit
Dependent Students $5,500 $6,500 $31,000
Independent Students $9,500 $10,500 $57,500

Annual and aggregate loan limits increase when you have completed 30 credit hours, so students pursuing a bachelor's degree may be eligible for additional aid.

Accepting an FDUSL

If you receive an FDUSL offer as part of your EFSC financial aid package and wish to accept it, you must follow the formal loan acceptance procedure, which includes reviewing and agreeing to the loan through the myEFSC portal, completing an online entrance counseling session, and signing a Master Promissory Note (MPN).

Repaying an FDUSL

You are responsible for paying interest on an FDUSL once it disburses including while you are still in school, during the six-month grace period after leaving school, and any time the loan is in deferment.

Principal repayment on an FDUSL loan begins six months after you cease to be enrolled at least half-time. Additional information on this will be provided during your mandatory entrance counseling, as well as during your exit counseling, which you must complete when you leave school or enroll in fewer than six credit hours.

Federal Direct Parent Loans to Undergraduate Students (DPLUS)

Federal Direct PLUS Loans are unsubsidized loans that are available to parents of dependent students to help pay for educational expenses (up to the cost of attendance minus all other financial assistance). Interest is charged during all periods, with interest rates capped at 9%.

Applying for a DPLUS

The Federal Direct PLUS Loan application is available on the Federal Student Aid website. All applicants are subject to a credit check.

Receiving a DPLUS

If you are approved for a Direct Parent PLUS Loan, you must complete an online Master Promissory Note (MPN) using your own FSA ID (not your child's) before any funds will be disbursed. An insurance premium of 1% of the loan principal and a 3% origination fee will be deducted from the loan proceeds prior to disbursement.

Repaying a DPLUS

Principal and interest repayment on a DPLUS both begin once the loan disburses. Additional information on this will be provided in the individual terms and conditions of your loan.

Private Loans

We recommend that you exhaust your federal financial aid options before considering a private loan, which vary in terms, conditions, and eligibility requirements. To apply for a private loan, you must go through a private lender or bank, which may require a credit-worthy cosigner. EFSC does not keep a list of preferred lenders.

Student Loan Cohort Default Rate

The Department of Education calculates cohort loan default rates annually. The most recently published default data is from fiscal year 2019.

EFSC’s fiscal year 2019 official cohort loan default rate is 4.5%. The national student loan default cohort rate for that same period is 2.3%.

The cohort loan default rate is based on students who entered repayment in FY 2019 (October 1, 2018 through September 30, 2019) and defaulted on or before the end of FY 2021 (September 30, 2021). Defaults occur when a borrower in repayment does not make a payment for at least 270 days.  

EFSC’s historical cohort default rates are published below. Additional information about cohort default rates is available from Federal Student Aid.

EFSC Student Loan Cohort Default Rates
Cohort Fiscal Year Loan Default Rate %
2019 4.5
2018 11.8
2017 16.1
2016 3.2
2015 16.9
2014 20
2013 19.6
2012 19
2011 17.2
2010 22.4
2009 19.6

Student Borrowing Rates

In 2021-22, 18% of enrolled EFSC students had loans.