What are the interest rates?
The federal interest rate varies depending on the loan type and when the first disbursement occurred. The table below provides interest rates for Direct Loans (Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS) first disbursed on or after July 1, 2024, and before July 1, 2025.
|
Undergraduate Borrowers |
Graduate or Professional Borrowers |
Parents and Graduate or Professional Borrowers |
|
6.533% |
8.083% |
9.083% |
|
Subsidized and Unsubsidized Loans |
Unsubsidized Loans |
Parent PLUS and |
The table below provides interest rates for Direct Loans (Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS) first disbursed on or after July 1, 2023, and before July 1, 2024.
| Undergraduate Borrowers | Graduate or Professional Borrowers | Parents and Graduate or Professional Borrowers |
| 5.50% | 7.05% | 8.05% |
| Subsidized and Unsubsidized Loans | Unsubsidized Loans | Parent PLUS and Graduate PLUS Loans |
The interest rates shown above are fixed rates (e.g., will not change for the life of the loan). If your loan was disbursed before July 1, 2023, you likely have a different interest rate. View interest rates for loans disbursed earlier.
Interest rates on federal student loans are set by federal law, not the U.S. Department of Education. Find out how interest is calculated here.
What is the loan fee?
All Direct Loans have a loan fee. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement.
| Loan Type | Loan Fee (if first disbursed on or after Oct. 1, 2020) |
|---|---|
| Undergraduate Subsidized/Unsubsidized Loans | 1.057% |
| Graduate Unsubsidized Loans | 1.057% |
| Parent and Graduate PLUS Loans | 4.228% |
Loans disbursed before Oct. 1, 2020 had different loan fees.
How to Apply for Federal Direct Loans
To apply, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form. The information from your FAFSA is used to determine how much student aid you are eligible to receive. If you are offered a new Federal Direct Loan(s) at any time you must accept this loan before the last day of the term and/or the last day of the last term you attended in the academic year. The Following must be completed before any funds are disbursed to your student account:
Please Note: Any time your Financial Aid changes, a revised notification is sent to your ERAU email. At such time, you should review your revised Financial Aid Offer by logging into ERNIE and view your Campus Solutions Student Homepage > Financial Aid.
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
| Grade Level | Dependent Students | Independent students and dependent students whose parents are denied a PLUS |
|---|---|---|
| Freshman 0-27 hours earned |
$5,500 per academic year; No more than $3,500 can be in subsidized loans |
$9,500 per academic year; No more than $3,500 can be in subsidized loans |
| Sophomore 28-57 hours earned |
$6,500 per academic year; No more than $4,500 can be in subsidized loans |
$10,500 per academic year; No more than $4,500 can be in subsidized loans |
| Junior/Senior 58+ hours earned |
$7,500 per academic year; No more than $5,500 can be in subsidized loans |
$12,500 per academic year; No more than $5,500 can be in subsidized loans |
| Graduate or Professional | Not Applicable | $20,500 per academic year; Unsubsidized Loans only |
| Total Aggregate Loan Borrowing Limit | $31,000 undergraduate total; No more than $23,000 can be in subsidized loans |
$57,500 undergraduate total; $138,500 graduate total; Includes all undergraduate federal student loans borrowed |
If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional federal loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit. For more information, please visit https://studentaid.gov/understand-aid/types/loans.
As a transfer student, it is your responsibility to know your annual and lifetime loan borrowing limits for Federal Student Loans and have all pending disbursements cancelled at your previous school before transferring to ERAU. This ensures a more accurate aid offer.
Before accepting Federal Direct Loan(s) at ERAU, you must inform the Financial Aid Office of any disbursements you received at another school during the academic year.
Due to the timing of loans, we may not be aware of the total loan amounts you may have received at your other school. Failure to notify our office of any loans you received at another school during the year can result in your existing loans being reduced and billed in order to keep within the annual loan limits. This would result in a balance owed (by you) to ERAU.
To avoid being over-awarded at ERAU, please follow these simple steps:
- Cancel any pending financial aid disbursements at your previous school before transferring.
- Inform us of any Financial Aid received at another Institution in the same Academic Year.
Note: Your previous school may also contact us directly by looking up our contact info on the National Student Loan Data System (NSLDS).
Don’t Over-Borrow
If you inadvertently received federal student loan funds in excess of your borrowing limit, you are ineligible for additional federal student aid unless you repay the excess loan amount in full, or agree to repay the excess loan amount in accordance with the terms of the promissory note that you signed.
Agreeing to repay the excess loan amount in accordance with the terms of the promissory note is called “reaffirmation.” You can reaffirm an excess loan amount by signing a “Reaffirmation Agreement” with your loan servicer.
Then, you must submit documentation of the action taken to the Embry-Riddle Financial Aid Office. Acceptable documentation may include but is not limited to:
- Payment confirmation from your loan servicer that you have paid the excess amount.
- Loan Summary Sheet from Direct Loans confirming you have consolidated all loans that were in excess.
To review your loan amounts and determine your loan holder (loan servicer), log into studentaid.gov/login with your FSA ID.
Resolving a Loan Overage
If you have received loans in excess of the lifetime aggregates, you must choose from the two options listed below in order to resolve the overage:
- Repayment of the excess loan amount by contacting the servicer of the loan indicated on studentaid.gov and following the servicer's instructions. Once the loan has been repaid, you must attach a copy of the repayment confirmation from the servicer to ERAU.
- Request a reaffirmation of loan funds with the servicer of the loan indicated on studentaid.gov. Please contact the servicer and ask for a reaffirmation letter in the amount of your overage. Once you receive your reaffirmation letter, please email to us at prfinaid@erau.edu. Be sure to include your student ID number when submitting.
Federal student loans can be very useful in helping cover education and living expenses, but keep in mind that loans must be repaid. Borrowers need to understand the responsibility that comes with student loan debt because their borrowing decisions will impact their ability to meet future financial obligations. The articles below can help borrowers learn more about responsible borrowing and successful repayment.
Exit Loan Counseling
Review the Exit Loan Counseling Guide.
All students who borrowed Federal Student Loans must complete Exit Loan Counseling online prior to graduation, withdrawing from the university, or dropping their enrollment below half-time.
The purpose of exit counseling is to ensure students understand their student loan obligations and are prepared for repayment
Repayment Guides and Information
Private Loans are provided by a lender, such as a bank, credit union or state agency. It can supplement the amount the federal government allows you to borrow from their programs.
Process Overview
Begin by comparing loans from different lenders. Then, apply directly to the lender of your choice. Embry-Riddle will work with any lender.
If you are approved, the lender will contact the Financial Aid Office to certify the loan. We certify the loan by confirming the amount you can receive and any other lender-required qualifications. Then, a private loan will be added to your financial aid offer.
Finally, the lender will send funds to Embry-Riddle to apply to your student account charges. Any leftover funds will be disbursed to you beginning the second week of classes each semester.
Things to look for in a private loan:
- Eligibility requirements: Most require a credit-worthy applicant (or co-signer) and adequate income to qualify.
- Interest rates: They may be fixed or variable. Determine how it's calculated and how often it is adjusted.
- Fees: Ask if fees are deducted from, or added to, the amount you borrow. Find out when fees are charged and how much.
- Annual Percentage Rate (APR): The APR is the annual cost of your loan, including the effect of any fees, in addition to interest. Remember, a loan with fees and a lower base interest rate may be as good of a choice as a loan with no fees and a higher base interest rate. APR helps show how all charges affect the cost of the loan.
- Loan limits: Check if there is an annual or lifetime aggregate limit. Pick a lender with a limit that works best with your program of study. Some private loans have maximum limits, while others allow you to borrow up to your total cost of attendance.
- Credit Approval: You (and your co-signer, if applicable) must pass a credit check. Even if you qualify on your own, applying with a qualified co-signer may result in a better interest rate. Credit approvals are valid for a limited time, most commonly six months, and generally require a new application every year. Please check with your lender for details.
- Repayment: Investigate the repayment terms, including the monthly payment amount and the repayment length. Some lenders offer rewards, such as interest rate reduction, to borrowers who make payments on time or via electronic funds transfer (EFT).
Find more private loan information on our ERNIE Loans page.
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Contact Financial Aid at 928-777-3765 or prfinaid@erau.edu with any questions.
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