Loans

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 first disbursed on or after July 1, 2024, and before July 1, 2025.

The table below provides interest rates for Direct Loans first disbursed on or after July 1, 2023, and before July 1, 2024.

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. 

The chart below shows the Direct Loan fees on or after Oct. 1, 2020.

The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.

If the total loan amount you receive throughout 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.

The loan borrowing limit for Parent PLUS, Graduate PLUS, and Private Loans is the cost of attendance minus any accepted aid.

Direct Subsidized and Unsubsidized Loans are federal student loans and do not require a student’s credit check.

Loan amounts depend on your grade level and dependency status. The type of loans offered depends on your financial need and degree level (undergraduate vs. graduate).

To apply, submit the FAFSA each year and include our school code, 001479. Allow a week for processing. Next, monitor your To-Do List and complete all Tasks on ERNIE. Also, check your university email account frequently.

When financial aid is offered, notification will be mailed to new students while continuing students receive an email.

After evaluating the offer, take action on your financial aid. Submit the Financial Aid Award Agreement, which will be added to your To-Do List. It will provide the terms and conditions of being a financial aid recipient. 

Next Steps for Undergraduate Student Loans:

1. First-time borrowers must complete the following online:
   • Master Promissory Note (MPN) for Undergraduate Students
   • Student Loan Entrance Counseling
   • Allow 2 business days for these tasks to update on ERNIE.
2. Accept the loan amount you want to borrow each year on ERNIE (under My Tools click Campus Solutions, then click Financial Aid).
   • The loan acceptance deadline is the day before the last day of the semester or the last day of the last term you attended in the academic year.
   • Any time your financial aid changes, a revised notification is sent to your university email. At such time, you should review and act on your revised offer.
3. Enroll at least half-time (6 or more credit hours) each semester and maintain Satisfactory Academic Progress (SAP).

• Learn more about undergraduate loans on ERNIE.

Next Steps for Graduate Student Loans:

1. First-time borrowers must complete the Master Promissory Note (MPN) for Graduate/Professional Students.
   • Allow 2 business days for this task to update on ERNIE.
2. Accept the Unsubsidized Loan amount you want to borrow each year on ERNIE (under My Tools click Campus Solutions, then click Financial Aid).
   • The loan acceptance deadline is the day before the last day of the semester or the last day of the last term you attended in the academic year.
   • Any time your financial aid changes, a revised notification is sent to your university email. At such time, you should review and act on your revised offer.
3. Enroll at least half-time (3 or more credit hours) each semester and maintain Satisfactory Academic Progress (SAP).

• Learn more about graduate loans on ERNIE.

Graduate students who want to borrow more can apply for a Graduate PLUS Loan. A credit check will be conducted on all graduate applicants, therefore, approval is not guaranteed. If approved, you must complete the MPN for Direct PLUS Loans.

How are Federal Student Loans disbursed?

Disbursement begins the second week of classes each semester.

Loan funds will be applied to your student account to pay school charges (tuition, fees, and if selected, on-campus housing and meal plan).

After school charges are paid, any remaining funds will be issued to you by check in the mail, or a direct deposit.

Enroll in eRefund on ERNIE > Campus Solutions > Finances > My Student Account > Make a payment – Access Account > Electronic Refunds.

Have questions?

Call Financial Aid at 928-777-3765 or send an email to prfinaid@erau.edu and include the student ID number.

Parent PLUS Loans can be borrowed by an eligible parent of a dependent student. To apply, follow the steps below.

1. You and your parent must submit the FAFSA each year, and include our school code 001479.
2. Monitor your To-Do List and complete all Tasks on ERNIE. Also, check your university email account frequently.
3. When notified, take action on your financial aid offer.
4. Compare costs to accepted financial aid. Inform your parents of the costs that still need to be paid.
5. Your parent must use their FSA ID to log in and submit the PLUS Loan application each year. Apply no sooner than May 15 for the upcoming fall semester.
   • A credit check will be conducted on all parent-applicants.
   • Parents cannot have an adverse credit history.
6. If approved, your parent must complete a PLUS MPN for Parents. Denied parent-applicants will be given options on how to proceed.
7. Results of the application are sent to Embry-Riddle within 24 hours for further processing. Please allow up to 3-5 business days for completion.
8. You must enroll at least half-time (6 or more credit hours) each semester and maintain Satisfactory Academic Progress (SAP).

How are PLUS Loans disbursed?

Disbursement begins the second week of classes each semester.

PLUS funds will be applied to your student account to pay school charges (tuition, fees, and if selected, on-campus housing and meal plan).

After school charges are paid, any remaining PLUS funds will be issued to you or your parent. On the PLUS application, your parent selected who will receive the leftover PLUS funds.

• If the parent was selected, they will receive a check in the mail or a direct deposit. Follow these steps to enroll in direct deposit.
• If the student was selected, you will receive a check in the mail or a direct deposit. Enroll in eRefund on ERNIE > Campus Solutions > Finances > My Student Account > Make a payment – Access Account > Electronic Refunds.

Learn more about parent loans on ERNIE.

Have questions?

Call Financial Aid at 928-777-3765 or send an email to prfinaid@erau.edu and include the student ID number.

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.

• What Is Default?
• Avoiding Default
• Ombudsman Group – help resolve issues
• Get Temporary Relief: Deferment and Forbearance

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

• Managing Loan Repayment
• Repayment Plans   
• Repayment Simulator 
• Consolidating Student Loans 
• Loan Forgiveness
• Total and Permanent Disability (TPD) Loan Discharge
• Loan Deferment
• Loan Forbearance

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.

Ready to compare lenders and apply?

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Have questions?

Contact Financial Aid at 928-777-3765 or prfinaid@erau.edu with any questions.