Types of Loan Programs
We are pleased to offer our students a variety of ways to finance their education while in attendance at the University of Maryland. There are Direct need- and non-need based loans, Direct PLUS Loans, Private Loans and payment plans. Students, and some parents, may be able to borrow money from the
United States Government through the Department of Education, or from private lenders.
It is important to consider several factors when applying for a loan.
- Borrower - Most loans are acquired by the student. In some cases, the Parent may also qualify for a loan.
- Eligibility - Some loans may be restricted to either Undergraduate or Graduate students, or may require enrollment of either full or part time.
- Interest - Each of the loan programs has set interest rates. Federal Loans typically have a lower interest rate than Private/Alternative Loans.
- Repayment - Some loans require repayment to start immediately after disbursement, others will start after student's enrollment status has changed.
Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department), though the entity you deal with, your loan servicer, can be a private business.
With Direct Loans, you
- Borrow directly from the federal government and have a single contact - your loan servicer - for everything related to repayment, even if you receive Direct Loans at different schools.
- Have online access to your Direct Loan account information via your servicer's website.
- Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
Direct Loans include