Federal loans to you or your parents can help finance your education at Susquehanna.

Direct Loans

There are two types of Federal Direct Loans: subsidized and unsubsidized.

Subsidized loans

These are awarded based upon demonstrated financial need. Interest is not charged while you are enrolled at least half-time or otherwise qualify for a deferment. The federal government "subsidizes" (or pays) the interest during these times. Repayment begins six months after you graduate, leave college entirely or are no longer enrolled at least half-time. The interest rate on this type of loan is 2.75% for loans disbursed for the 2020-2021 academic year.

Unsubsidized Direct Loans

These are available to all students because they are not based on financial need. The interest rate is also 2.75% and accrues from the time the loan is disbursed until it is repaid in full. There is no payment due until six months after you are no longer enrolled at least half-time. However, you are strongly encouraged to make interest payments during your time in college or else accrued interest will capitalize on the loan.

You may borrow annually through the Federal Direct Loan program.

If you borrow the full Direct Loan amount available in each academic year, your cumulative borrowing will total $27,000, as outlined below:

First year: $5,500 (up to $3,500 may be Subsidized)
Sophomore: $6,500 (up to $4,500 may be Subsidized)
Junior: $7,500 (up to $5,500 may be Subsidized)
Senior: $7,500 (up to $7,500 may be Subsidized)

Online resources

Directions on obtaining a loan
Loan repayment simulator

Step 1: Complete your entrance counseling online

First time borrowers must complete entrance counseling prior to applying for a Federal Direct Loan. Parents should not complete the session on behalf of their students, as this is a federal requirement designed to benefit each student's understanding of his/her rights and responsibilities.

  1. Visit studentaid.gov
  2. Click the "Manage Loans" tab.
  3. Click on "Complete Entrance Counseling" Under the "I'm Starting School or In School" section.
  4. Log in with your FSA ID and Password
  5. Your results will be sent to Susquehanna electronically. 

Note: If you previously borrowed under our Federal Stafford Loan process, you do not need to complete entrance counseling again. However, if you would like a refresher, all students can complete the above process for their Federal Direct Loans.

Step 2: Complete your Master Promissory Note (MPN) online

Borrowers must complete an MPN at studentaid.gov

  1. Under the "Complete Aid Process" tab select "Complete Master Promissory Note"
  2. Select "Log In To Start" in the "I'm an Undergraduate Student" section. 
  3. Once completed, Susquehanna University will be automatically notified.

Parent PLUS Loans

The Federal Direct Parent Loan for Undergraduate Students (PLUS Loan) is a popular option for families who wish to use a low-interest loan to cover college expenses.

It can be used to supplement your student's aid awards, or it can be used to cover the full cost of education.

  • Parents must be creditworthy, but there are no income requirements.
  • No collateral or cosigners are required.
  • Completion of the FAFSA is required before applying.
  • Loans are payable 60 days after the final disbursement of the loan and payable over 10 years.
  • Deferment of repayment is available upon request as long as the student is enrolled at least half-time.
  • The PLUS loan rate is fixed at 5.30% and has a 4.236% origination fee.

Estimate your PLUS Loan costs with the Federal Loan Simulator

Step-by-Step Guide to Obtaining a PLUS Loan

Federal Parent PLUS Loan Application Instructions

A parent can apply for a Federal Direct Parent PLUS Loan by visiting studentaid.gov.

  1. On the main, select "Apply For Aid"
  2. Under "Applying for a PLUS Loan" select "Apply for a Parent PLUS Loan"
  3. Log in using your FSA ID and Password to begin the Parent PLUS Loan application.
  4. The PLUS process will ask for information about the parent, allow a parent to indicate a loan amount and initiate a credit check.
  5. The individual parent applying for the loan will also complete a Master Promissory Note (MPN) online at studentaid.gov.  The MPN can be completed as soon as the credit is approved.

The request is not complete until Susquehanna has both the initial application and the Master Promissory Note on file. Unlike the Federal Direct Subsidized and Unsubsidized Student Loans, the Direct Parent PLUS loan request and credit check must be completed annually for each loan. 

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