Loans

Overview

Federal and private loans are either need based or non-need based financial aid that must be repaid, with interest. Federal loans include the Federal Direct Student Loans and Federal Parent PLUS Loan. Some federal loans do not accrue any interest while you're a student enrolled at least half time. Private Education Loans are another option to help you pay for the remainder of your education.

Federal Direct Loans

Federal Direct Student Loans are low-interest rate loans that all students can apply for, provided they have completed a FAFSA and meet the criteria to receive federal financial aid. There is no credit check involved.

As with all loans, Federal Direct Student Loans must be repaid with interest. There are two types of Federal Direct Loans: Subsidized and Unsubsidized. You may receive one or both types depending on your dependency status and need. To apply and receive the funds, you must be: a US Citizen or Eligible Non-Citizen, have a valid Social Security number, enrolled as a regular student in an eligible degree program, maintain your grades, and not be in default on a Federal Student Loan.

The Subsidized Direct Loan is based on need and does not accrue interest while enrolled in school and until 6 months after graduation, enrollment is less than half time status, or withdrawal.

The Unsubsidized Direct Loan is not based on need, and it accrues interest while you are enrolled in school.

Loan Limits: Refer to the Annual and Aggregate Loan Limit tables below.

Federal regulations limit borrower eligibility for Direct Subsidized Loans to 150% of the published length of an undergraduate program. Important to note that Subsidized and Unsubsidized Direct Loans combined cannot exceed the Federal Direct Loan annual limits noted below. Visit the Federal Student Aid website for a full explanation.

Interest: The interest rate is a variable fixed rate which is determined at the beginning of each academic year on July 1. For more information on interest rates including current interest rates, please click HERE.

For the Subsidized Loan, the Federal government pays the interest while you are enrolled in school and during the six-month grace period after you graduate or withdraw from school. After the six-month grace period, the interest will be capitalized immediately at the time of repayment. The capitalized interest will be added to the principal balance. It is to your advantage to pay more than the minimum; you will pay less in the long run. The Unsubsidized loan has the same repayment grace period, but you are responsible for paying all the interest while in school and after. You do not have to make any interest payments while you are in school. The interest will accumulate while you are in school and during the grace period.

Enrollment Status: You must be enrolled half-time or more (6+ units) to be eligible for a Federal Student Loan. In order to receive the full amount of a loan for the academic period, you must be enrolled full time (12+ units). If you are less than full time, your loan eligibility will be prorated based on the number of units (6-11) you are enrolled (Federal Student Aid Changes Coming in 2026 for Undergraduate Students | PLNU). 

Apply for Loan and Entrance Counseling: After being awarded a Subsidized or Unsubsidized Direct Loan, click on the links to complete a Master Promissory Note (MPN) and Entrance Counseling. The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). The Entrance Counseling is required for all first-time borrowers and strongly encouraged for all transfer students with a federal student loan. The entrance interview is online and will provide your rights and responsibilities as a borrower of a student loan. It will help you understand what to expect while you are in school and after.

If you are a continuing student borrower at PLNU, go to your student portal to accept your loans.

Repayment: Repayment begins six months after you graduate or withdraw or cease to be enrolled at least half time.

The loan repayment period is typically 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. Visit the Federal Student Aid website for more information about repayment.

If you would like to calculate your repayment of loans, try using the repayment calculator on the Federal Student Aid website. 

Exit Counseling: Every student borrower​ ​of a Federal Student Loan, who has dropped to below half-time enrollment, who has withdrawn or graduated from PLNU is required to complete ​Exit Counseling.​ ​​​ Exit Counseling​ ​may be completed at: studentaid.gov. However, in-person Exit Counseling sessions are available at the end of the Fall and Spring term and attendance is strongly encouraged. Communication will be sent to students toward the end of the term, notifying them of when in-person Exit Counseling sessions will be available.

Please Note:

• Additional Federal Unsubsidized Direct Loan: If your parent is denied a Federal Parent PLUS loan, you are eligible to apply for an additional federal unsubsidized loan. The limits are listed below. Please contact our Student Financial Services Office to see if you are eligible to apply.
• You are not required to borrow the full amount for which you are eligible; borrow conservatively to minimize indebtedness.
• Once awarded a federal loan, students still need to accept their loan(s), complete a Master Promissory Note and Entrance Counseling.

Annual Loan Limits

The following table shows the maximum amounts you can borrow each year for the Unsubsidized and Subsidized Direct Loans.

Aggregate Loan Limits

The following table shows the maximum lifetime totals that you can borrow for both the Direct Subsidized and Unsubsidized loans: 

*Includes Teacher Credential students 

**Includes Dependent Undergraduate students whose parents are denied the PLUS loan

Federal Parent PLUS Loans

The Federal PLUS Loan is a credit-based loan for parents (or step-parents) of dependent undergraduate students. A FAFSA is required before a Parent PLUS Loan can be approved. 

Read more about how to complete the FAFSA.

New Policy Regarding Parent Loans

Federal loan regulations are changing significantly starting with the 2026–2027 academic year. Your borrowing limits now depend on whether your student is considered a New Borrower or a grandfathered Legacy Borrower.

1. New Borrowers (Subject to New Limits)
   If your student has not received a Federal Direct Student Loan, and you have not borrowed a Parent PLUS Loan on their behalf, prior to July 1, 2026:

• Annual Limit: Maximum of $20,000 per academic year. 
• Lifetime Limit: A cumulative maximum of $65,000 over the course of your student's education.
• Please note: These limits apply to all parents combined borrowing for a single student. Please plan wisely, as you will not be able to borrow a Parent PLUS Loan once you reach the $65,000 lifetime limit. 

2. Legacy Borrowers (Grandfathered Status)

If your student received a Federal Direct Student Loan, or if you borrowed a Parent PLUS Loan for them, prior to July 1, 2026:

You are eligible to borrow up to your student's maximum eligibility. This legacy status lasts for up to three academic years (through 2028–2029) or until your student completes their degree, whichever comes first.

There is no lifetime aggregate limit for legacy borrowers during this period. Your maximum borrowing eligibility is calculated as:

Cost of Attendance (COA) - Financial Aid Accepted = Maximum PLUS Loan Eligibility

Have multiple students in college? 

Borrowing rules are determined per student, not per household. If you have one student who is a New Borrower and another who is a Legacy Borrower, you will be subject to both policies simultaneously. You can borrow up to $20,000 for the new borrower, and up to the maximum COA eligibility for the legacy borrower.

How Much Should I Borrow 

• Borrow only what you need: Careful planning helps reduce interest and your overall repayment burden. 
• Apply for the full academic year: We strongly recommend applying for the loan amount you need for the entire academic year (Fall and Spring combined). 
  • Why? By federal rule, Parent PLUS repayment is scheduled to begin 60 days after the loan is fully disbursed. If you apply for a Fall-only loan, it is considered fully disbursed in December, meaning your official repayment timeline starts in the winter. Applying for a full-year loan pushes that official repayment start date out until after the Spring portion is disbursed.
• Our Recommendation: We strong advise borrowing only what is necessary to cover your student's direct, institutional charges (like tuition, fees, and on-campus housing) to keep your overall student debt as low as possible. 
• To help with this, use the Parent PLUS Loan Calculator* below to estimate how much to borrow.

* The calculator is a helpful tool for a Legacy parent borrower as defined above. A parent borrower of a new student can also use the calculator to help determine the amount to borrow for $20,000 or less. 

If you’re unsure how much to borrow after using our calculator, please contact Student Financial Services for guidance.

Loan Limits & Key Information

• Loan Limits: The maximum PLUS Loan amount you can borrow is the Cost of Attendance minus all other financial aid received (for Legacy borrowers), or a flat limit of $20,000 per year (for New borrowers starting in 2026-2027).
• Fees: All Federal Parent PLUS Loans have a 4.228% origination fee deducted proportionally from each disbursement (e.g., if you borrow $10,000, approximately $9,577 is sent to the school).
• Interest: For the 2026-2027 academic year, the interest rate is a fixed 9.07%. Interest begins accruing as soon as the first disbursement is made.

Repayment Information 

• Repayment Timeline: Standard repayment officially begins 60 days after the loan is fully disbursed.
• Deferment Options: Parent borrowers can request an in-school deferment to postpone payments while their student is enrolled at least half-time, plus an additional 6-month post-enrollment grace period.
• Repayment Terms: The standard repayment term is 10 years, though other extended plans may be available depending on eligibility.
• Responsibility: Parent PLUS Loans belong solely to the parent borrower and cannot be transferred to the student.

Learn more about federal repayment options at studentaid.gov!

Need Help? 

Our Student Financial Services team is here to help you make informed decisions. 

Contact us if you need assistance determining:

1. The appropriate loan amount for your family.
2. How the loan funds will apply to your student’s account.
3. How this loan fits into your overall college payment plan.

Contact Student Financial Services at SFS@pointloma.edu or 619-849-2538

Federal Nursing Student Loan

The Federal Nursing Student Loan is a federally subsidized, low-interest rate loan for students accepted and enrolled in the PLNU Nursing program who demonstrate exceptional financial need. Pre-Nursing students are not eligible.

Federal Nursing Student Loan Details

• Loan Amounts: Varies. Determined by PLNU based on available funding.  
• Interest: Fixed at 5% and begins accruing nine months after graduation, withdrawal or dropping to less than half-time status.
• Repayment: Begins nine months after graduation, withdrawal, or dropping less than half-time. 

If you are awarded a nursing loan, you must sign a promissory note at the beginning of each semester before funds can be applied to your account.

Entrance and Exit Counseling

Entrance Counseling is required before Federal Nursing Student Loan funds can be disbursed. Exit Counseling is required when you have graduated, withdrawn, or enrolled for less than half time. The purpose of loan counseling is to advise you of your rights and responsibilities for borrowing a Nursing Loan, deferment and forbearance options, and repayment options. Entrance counseling is completed at the time you sign the Nursing Loan Promissory Note at ecsi.net. For Exit Counseling, you will receive an email from PLNU at the time of graduation, withdrawal, or enrolled for less than time, directing you online.

Please contact us to determine if you are eligible to apply.

Note: funds are limited; not all students who meet the qualifications for a Nursing Loan will receive the Loan. PLNU is the lender for this loan, so repayment will be to the university or its servicer ECSI. 

Caution: Federal Nursing Student Loans are considered Federal funds and therefore are subject to similar repayment guidelines as other federal loans. Non-repayment of a Federal Nursing Loan must be reported by PLNU to the federal government and will affect your credit score.

Private Loans

A private loan is another option for funding your education. Students should apply for a private loan only after all federal loan options have been exhausted (such as the Federal Direct Loans). Private loans are credit-based and often require, or at least benefit from, a co-signer. Parents may also apply for certain private loan options. Please be cautious and borrow only what you need for the academic year.

Choosing a Lender

PLNU provides a Private Loan Lender List to help you begin your research. While these lenders have worked well with PLNU students in the past, offer competitive rates and terms, and have been reviewed by our office, you are welcome to apply with any lender of your choice.

View our Private Loan Lender List

These are the items the SFS team reviews annually when selecting lenders:

• Who is eligible for the loan?
• What are the interest rates and fees?
• Is a co-signer required, and when are they released?
• What are the standard repayment terms and forbearance/deferment options?
• Is the application process simple and clear?
• Is Customer Service easy to contact?
• What is unique about the Program?

PLNU receives no compensation or benefits from any lenders. The lender list and marketplace

resource are provided so that our students and parents are aware of which providers have completed the screening process. We do not accept revenue-sharing, compensation agreements, gifts, or trips from any lending institution. Any services provided must have a direct benefit or interest to our students. Click here for our Code of Conduct. 

We’ve also partnered with Sparrow, a loan marketplace, to give you another way to compare private loan options.

View the Sparrow Marketplace

Before You Borrow 

• Carefully review the loan application and promissory note.
• Confirm the loan’s interest rate, APR, repayment terms, and fees.
• Keep in mind that private loans often carry higher interest rates than federal loans.
• Applying with a co-signer may improve approval chances and lower your interest rate.