Types of Loan

• A federal Direct Subsidized Loan is awarded on the basis of financial need. The US government pays interest on a subsidized loan while you are enrolled at university at least half-time and during deferment periods. 

• Please note that graduates are not entitled to a Direct Subsidized Loan but may apply for up to $20,500 from the Direct Unsubsidized Loan (subject to approval by Financial Aid staff within Scholarships and Student Funding Services).

• For more information about this loan, the interest rates and origination fees please see the following: Subsidized and Unsubsidized Loan

• A federal Direct Unsubsidized loan is awarded regardless of need.

• You are not required to pay the interest on this loan while at university but we recommend that you do. You will be charged interest starting at disbursement until it is paid in full. If the interest accumulates, it will be added to the principal amount of the loan and increase the amount to be repaid.

• For more information about this loan, the interest rates and origination fees please see the following: Subsidized and Unsubsidized Loan

• Parents of dependent undergraduate students can borrow a federal Direct Parent PLUS Loan to help pay for educational expenses at the University of Edinburgh.

• Parents can borrow up to the total Estimated Cost of Attendance minus all other sources of financial aid their student receives.

• PLUS loans are the financial responsibility of the parents and not the student.

• A parent PLUS loan borrower must meet the same citizenship and residency requirements as the student. The parent must not owe a refund on a federal student financial aid grant or be in default on a federal student loan.

• A credit check is conducted when your parents begin the loan application process. Undergraduates whose parents do not qualify for a PLUS loan can borrow additional federal Direct Unsubsidized loan funds.

• For more information about this this loan, the interest rates and origination fees, please see the following: Federal Direct Parent PLUS Loan Information

• The federal Direct Graduate PLUS Loan is a federal loan that graduate students with good credit histories may borrow to help pay their educational expenses.

• A graduate student may borrow up to the total Cost of Attendance less all other financial aid received by the student.

• Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA).

• They also must have applied for their annual loan maximum eligibility under the federal Unsubsidized Direct Loan Program before applying for a Graduate/Professional PLUS loan.

• Repayment begins on the date of the last disbursement of the loan and the first payment is due within 60 days after the date the loan is fully disbursed. A Graduate PLUS borrower may receive a deferment while he or she is enrolled on at least a half-time basis at an eligible school. Upon dropping to less than half-time enrolment status, the borrower is not entitled to a grace period on his or her PLUS loans.

• For more information about this loan, the interest rate and origination fees, please see the following webpage: Federal Direct Graduate PLUS loan

• Please see Private Alternative Loan Flowchart for further details about the application process. 

 Private Alternative Loan Flowchart 2324 (421.76 KB PDF)

• A private alternative loan is a non-federal education loan, through a private lender, typically in the student’s name and requiring a co-signer.

• Approval and interest rates are based on the creditworthiness of the borrower and co-signer. Each alternative lender has different eligibility requirements, loan rates, terms, and conditions.

• Students who are eligible for federal student aid should complete the FAFSA and exhaust all federal loans and scholarship opportunities, before applying for a private alternative loan. Federal student loans generally have more favourable terms and conditions than private loans. We recommend that you utilise all federal loan eligibility before turning to private loans.

• The University is currently approved to work with the following Private Alternative loan lenders:
  • Sallie Mae Student Loans
  • Earnest Loans
  • VSAC