A variety of federal and private loan options exist to students who meet diverse qualifications including degree of study, past accomplishments, financial status and other such criteria.
What Are the Interest Rates for Federal Student Loans?
The interest rate varies depending on the loan type and the first disbursement date of the loan. The table below provides interest rates for Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans and Federal Direct PLUS Loans first disbursed on or after July 1, 2025, and before July 1, 2026.
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Subsidized Loans | Undergraduate Students | 6.39% |
| Direct Unsubsidized Loans | Undergraduate Students | 6.39% |
| Direct Unsubsidized Loans | Graduate/Professional Students | 7.94% |
| Direct PLUS Loans |
Graduate/Professional Students and Parents of Dependent Undergraduate Students |
8.94% |
If your loan was disbursed before July 1, 2024, you likely have a different interest rate. View interest rates for loans disbursed earlier.
What Is a Federal Direct Loan Fee?
A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow.
You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the Federal Direct Loan fees on or after Oct. 1, 2019.
| Loan Type | Loan Fee |
|---|---|
| Direct Subsidized Loans | 1.057% |
| Direct Unsubsidized Loans | 1.057% |
| Direct PLUS Loans | 4.228% |
Loans first disbursed prior to Oct. 1, 2019, have different loan fees.
How to Apply for Federal Direct Loans
To apply for a Federal Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form. The information from your FAFSA form is used to determine how much student aid you are eligible to receive. If you are offered a new Federal Direct Loan(s) at any time, you must accept this loan before the last day of the term and/or the last day of the last term you attended in the academic year. The following must be completed before any funds are disbursed to your student account:
Please Note: Any time your Financial Aid changes, a revised notification is sent to your ERAU email. At such time, you should review your revised Financial Aid Offer by logging into ERNIE and view your Campus Solutions Student Homepage > Financial Aid.
Aggregate Federal Loan Limits:
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
| Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| First-Year Undergraduate Annual Loan Limit | $5,500 - No more than $3,500 of this amount may be in subsidized loans | $9,500 - No more than $3,500 of this amount may be in subsidized loans |
| Second-Year Undergraduate Annual Loan Limit | $6,500 - No more than $4,500 of this amount may be in subsidized loans | $10,500 - No more than $4,500 of this amount may be in subsidized loans |
| Third-Year and Beyond Undergraduate Annual Loan Limit | $7,500 - No more than $5,500 of this amount may be in subsidized loans | $12,500 - No more than $5,500 of this amount may be in subsidized loans |
| Graduate or Professional Students Annual Loan Limit | Not Applicable (All graduate and professional students are considered independent) | $20,500 (unsubsidized only) |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000 - No more than $23,000 of this amount may be in subsidized loans |
$57,500 for undergraduates - No more than $23,000 of this amount may be in subsidized loans $138,500 for graduate or professional students - No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study. |
If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional 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/subsidized-unsubsidized
As a transfer student, it is your responsibility to know your annual loan limits for Federal Direct Loans and have all pending disbursements cancelled at your previous school before transferring to ERAU. This ensures a more accurate award package.
Before accepting a Federal Direct Loan(s) at ERAU, you must inform the Office of Financial Aid 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
Over-borrowing or going into EXCESS of your aggregate loan limits will prevent you from receiving any Federal Student Aid! In order to regain financial aid eligibility, you must make satisfactory arrangements with your loan holder and turn in the appropriate documentation to our 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), you must log into the National Student Loan Data System (NSLDS) by visiting https://nsldsfap.ed.gov/login
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 in NSLDS 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 in NSLDS. 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 dbfinaid@erau.edu. Be sure to include your Student ID# when submitting.
Federal student loans can be very useful in helping cover education and living expenses, but it is important to 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.
Review the Exit Loan Counseling Guide.
All students receiving Federal Stafford Loans must attend an Exit Loan Counseling session prior to graduation, withdrawal from the university or if enrollment drops below half-time status.
Repayment Guides and Information
Private education loans are non-federal loans provided by banks, credit unions, state agencies, or other private lenders. These loans may be used to supplement the amount you are eligible to borrow through federal student loan programs.
We encourage students and families to carefully compare lenders and fully understand loan terms before borrowing.
Process Overview
-
Compare Lenders
Begin by researching and comparing loan options from different private lenders. -
Apply Directly with the Lender
Once you select a lender, complete the application directly through that lender’s website. Embry-Riddle will work with any eligible private education loan lender you choose. -
Loan Certification
If your loan is approved, the lender will contact the Financial Aid Office to certify the loan. -
Certification confirms:
- The amount you are eligible to receive
- Your cost of attendance
- Other lender-required qualifications
-
Disbursement of Funds
The lender will send loan funds directly to Embry-Riddle to be applied toward your student account charges. Any remaining credit balance will be refunded to you beginning the second week of classes each semester.
Things to Consider When Comparing Private Loans
Before borrowing, review the following carefully:
Eligibility Requirements
Most lenders require a credit-worthy applicant and adequate income. Many students apply with a co-signer to improve approval chances or receive a better interest rate.
Interest Rates
Interest rates may be fixed or variable. Be sure you understand:
- How the rate is calculated
- How often a variable rate may adjust
Fees
Ask whether fees are deducted from your loan funds or added to your balance. Confirm:
- When fees are charged
- The total amount of any fees
Annual Percentage Rate (APR)
The APR reflects the total annual cost of your loan, including interest and fees. Comparing APRs can help you better understand the true cost of borrowing. A loan with a lower interest rate but higher fees may cost more overall than one with a slightly higher rate and no fees.
Loan Limits
Check whether the lender has annual or lifetime borrowing limits. Some lenders allow borrowing up to your total cost of attendance, while others have specific maximum amounts.
Credit Approval
You (and your co-signer, if applicable) must pass a credit check. Credit approvals are valid for a limited time, typically up to six months, and most lenders require a new application each academic year.
Repayment Terms
Review:
- When repayment begins
- Estimated monthly payment amounts
- Length of repayment
Some lenders offer incentives, such as interest rate reductions, for enrolling in automatic payments (EFT) or making consistent on-time payments.
Historical Lender List Disclosure
Embry-Riddle Aeronautical University maintains a historical lender list with ELM Select. The lenders included on this list represent the top 20 private education loan lenders based on a 30-month historical lender report reflecting total loan volume utilized by our students and families.
The university relies on lenders with an established record of performance and student satisfaction to provide consistency and stability in the private loan process. Lender activity, borrower benefits, and service levels are periodically reviewed to ensure the information provided remains accurate and helpful to borrowers.
Students and parents are not required to select a lender from this list and may choose any eligible private education loan lender.
Compare Lenders and Apply
ELM Select makes it easy to compare lenders and apply online!
Find more private loan information on our ERNIE Loans page
Questions?
If you have questions about private education loans or the certification process, contact the Financial Aid Office: