Funding Your Education with Student Loans
After you've taken all the steps you can to reduce the cost of your tuition—like transferring credits, grants and scholarships, work-study programs, tuition assistance and military discounts— it still may not be possible for you to pay out pocket for your remaining costs. If that’s the case, student loans can help you fund your education.
If you’re thinking about taking out one or more federal or private student loans, talk to our financial services team about smart borrowing practices and to get all the information you need to fund your educational future. Because you'll be responsible for paying back any student loans you take, even if you don't complete your degree, it's important to borrow responsibly, and keep in mind that you don't need take out loans for the full amount you're approved for. Talk to your Student Financial Services team to learn more.
Funding Your Education with Student Loans
After you've taken all the steps you can to reduce the cost of your tuition—like transferring credits, grants and scholarships, work-study programs, tuition assistance and military discounts— it still may not be possible for you to pay out pocket for your remaining costs. If that’s the case, student loans can help you fund your education.
If you’re thinking about taking out one or more federal or private student loans, talk to our financial services team about smart borrowing practices and to get all the information you need to fund your educational future. Because you'll be responsible for paying back any student loans you take, even if you don't complete your degree, it's important to borrow responsibly, and keep in mind that you don't need take out loans for the full amount you're approved for. Talk to your Student Financial Services team to learn more.
Direct Loan Information
Federally Subsidized Direct Loans are fixed low interest loans that are based on financial need.
Direct Loans Details
SNHU participates in the Federal Direct Loan Program. Direct loans are fixed-rate student loans for undergraduate and graduate students attending college at least half-time. Federal Direct Loans are the most common type of financial aid to assist with paying for school.
Direct Loans are available to eligible students who file a valid FAFSA. Please review your SNHU Financial Aid award letter for the amounts you qualify for. For more information on terms and interest rates, please visit the Federal Student Aid website.
Subsidized and Unsubsidized Direct Loans
Subsidized Direct Loans are awarded based on financial need. With a Direct Subsidized Loan, the government pays the interest on the loan while the student is in school and during the six-month grace period.
Unsubsidized Direct Loans are loans with interest that is not paid by the government. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may defer paying the interest while they are in school by capitalizing the interest, which increases the overall payoff amount of the loan.
Direct Loan Borrower Requirements
First-time Direct Loan borrowers must complete the following requirements before a loan disbursement will be applied to his/her student account:
- Complete Entrance Counseling online which helps you learn about a Federal Direct Loan, how the process works, how to manage your education expenses, and understand your rights and responsibilities as a borrower.
- Complete the Master Promissory Note (MPN) which is a legal document in which you promise to repay the amount borrowed and any accrued interest to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). Review a sample MPN to fully understand the terms and conditions of the Direct Loan as well as borrower responsibilities. SNHU uses the multi-year MPN which means students can borrow additional Direct Loans on a single MPN for up to ten years.
Borrower Rights and Responsibilities
As a Federal Direct Loan borrower, the student has the right to:
- Receive a copy of a promissory note before or after the loan is made.
- Receive a disclosure statement, including information about interest rates, fees, loan balance, and the size and number of payments, before repayment of the loan begins.
- Benefit from a grace period or deferred payment on certain loans after leaving school or dropping below half-time enrollment, before payments begin.
- Prepay all or part of the loan without a prepayment penalty.
- Choose from several repayment options and have the option to periodically change the repayment plan, if necessary to obtain an affordable loan payment.
- Receive written notice if the loan is sold to another lender.
- Apply for a deferment (if eligible) of the loan payments for certain specified periods.
- Request forbearance from the lender/servicer if unable to make payments and don't qualify for a deferment.
- Receive proof when the loan is paid in full.
As a Federal Direct Loan borrower, the student is responsible for:
- Repaying the loan, including accrued interest and fees, regardless of the completion of the degree or certificate, completion of the program of study within the normal period allowed, obtain employment, or are satisfied with the education.
- Completing exit counseling before leaving school or dropping below half-time enrollment.
- Notifying the lender/servicer within 10 days if there is a change to the student's name, address or phone number; drop below half-time enrollment status; withdraw from school or transfer; or change the graduation date.
- Directing all correspondence to the lender/servicer, which could change during the life of the loan.
- Making monthly payments on the loan after leaving school, unless in the grace period or have been granted a forbearance or deferment.
- Informing the lender/servicer of anything that might change the eligibility for an existing deferment.
Annual Borrowing Limits
Annual borrowing amounts are defined by an academic year and based on cumulative credits earned toward a specific degree program.
| Year | Dependent Student | Independent Student |
| Freshman (0-29 undergraduate credits) | $5,500 ($3,500 subsidized max) | $9,500 ($3,500 subsidized max) |
| Sophomore (30-59 undergraduate credits) | $6,500 ($4,500 subsidized max) | $10,500 ($4,500 subsidized max) |
| Junior and Senior (60 or more undergraduate credits) | $7,500 ($5,500 subsidized max) | $12,500 ($5,500 subsidized max) |
| Graduate Student | $20,500 (unsubsidized only) |
Lifetime Borrowing Limits
Direct Loan limits are defined by the government and dictate how much direct loans a student may borrow.
| Student Type | Lifetime Borrowing Limit |
| Dependent Undergraduate Student | $31,000 ($23,000 maximum in subsidized loans) |
| Independent Undergraduate Student | $57,500 ($23,000 maximum in subsidized loans) |
| Graduate Student | $138,500 ($65,500 maximum in subsidized loans) |
Responsible Borrowing
You should always borrow what you need to assist with the cost of education and not just the amount that is awarded. After you receive your award letter, if you find that you do not need all of the loans you qualify for to cover the current years tuition and expenses, then make sure to reduce or cancel loan amount(s) not needed. This will reduce your overall student debt when you enter repayment. To revise a loan award, please follow the procedure outlined in your award letter notification.
Direct Loan Instructions:
Students are required to sign a Master Promissory Note (MPN) and complete online Entrance Loan Counseling (ELC) before receiving a Direct loan.
If you are a first-time Direct Loan Subsidized and/or Unsubsidized borrower:
Step 1: Complete Entrance Counseling session
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Undergraduate Students" dropdown
- Choose 'Complete Entrance Counseling'
- Follow the instructions to complete Entrance Counseling.
Step 2: Complete a Master Promissory Note (MPN)
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Undergraduate Students" dropdown
- Choose 'Complete Loan Agreement for a Subsidized/Unsubsidized Loan (MPN)'
- Follow the instructions to complete the Master Promissory Note.
*If you do not remember your FSA ID, you can access it online at https://studentaid.gov/help/forgot-fsa-id
Exit Loan Counseling Requirements
Similar to Entrance Loan Counseling, Exit Loan Counseling is a federal requirement of all students who received subsidized, unsubsidized or PLUS loans under the Direct Loan Program or the Federal Family Education Loan (FFEL) Program to complete once the student graduates, leaves school, or drops below half-time enrollment. As part of the Exit Loan requirements, student will be reminded of their obligations to repay, along with other information on deferment, forbearance, avoiding default, as well as how to make finances a priority.
National Student Loan Data System (NSLDS)
Although NSLDS is still available for students, currently FSA is moving toward a consolidation of all websites to a “one-stop shop” at studentaid.gov. Students will be able to get student aid information collected from NSLDS by logging into studentaid.gov using their FSA credentials. See FSA Partners for more information.
Repayment
Repayment for Federal Direct Loans begins six months after you graduate, withdraw, stop attending, or your enrollment status is less than half-time. The standard repayment term is ten years and the interest rate may vary depending on the type of Direct Loan and the disbursement date.
Visit the Federal Student Aid site to learn more about the following repayment plans and deferment/forbearance options depending on the type of Federal student loan borrowed:
- Repayment plan options include Graduated, Extended, Revised Pay As You Earn (REPAYE), Pay As you Earn (PAYE), Income-Based Repayment (IBR), Income Contingent Repayment (ICR), and Income Sensitive Repayment Plan.
- Deferment options include enrollment in graduate fellowship or approved rehabilitation training programs, unemployment, economic hardship-, service in the Peace Corps,- and active military service.
- Discretionary forbearances include financial difficulties, medical expenses, change in employment and other reasons acceptable to your loan servicer.
- Mandatory forbearances include service in a medical or dental internship, residency program, qualified teaching, national service award recipient in AmeriCorps, and activated members of the National Guard.
Loan Servicer
A loan servicer is a company that handles the billing and other services on your federal student loan. Your loan is assigned to a loan servicer by the U.S. Department of Education. The loan servicer will provide regular updates on the status of your Direct Loan, work with you on repayment plans, loan consolidation, and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help. For more information about loan servicers, visit the Federal Student Aid site.
Parent PLUS Loan Information
The Parent PLUS Loan is a federal loan that allows parents of undergraduate students to borrow up to the cost of education, less any financial aid.
Parent PLUS Loan Details
The Federal Direct Parent PLUS Loan is an unsubsidized loan for biological or adoptive parents of dependent students. Parent PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. The FAFSA application is required to be completed to be able to process a Parent PLUS Loan. The lender is the U.S. Department of Education and you can learn more about this loan, the current interest rate and loan fee through the Federal Direct PLUS Loan program.
Approval for the Parent PLUS Loan is based on a parent's credit check for adverse credit history and the undergraduate student being enrolled at least half-time in a degree program. Your parent can complete a PLUS Request on the Department of Education's website to apply for the Parent PLUS Loan (A parent is required to use their FSA ID to complete the PLUS Request).
If a parent is denied for a Parent PLUS Loan, then the parent may:
- Appeal by documenting to the Department of Education that there are extenuating circumstances related to the parent's adverse credit history; or
- Obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing; or
- Take no action on the PLUS application and first and second year students (up to 59 credits) may be eligible for $4,000 in an additional unsubsidized Direct Loans. Third and fourth year students (59 credits and above) may be eligible for an additional $5,000.
There are a number of advantages in considering the Parent PLUS loan over a private educational loan. As a family, you should decide which loan option best suits your needs. There is no obligation to accept this loan if approved.
Repayment
Repayment typically begins thirty days after full disbursement of the loan and the student will have ten years to repay the loan. The standard repayment term is ten years and the interest rate may vary depending on the disbursement date.
Visit the Federal Student Aid Site to learn more about PLUS repayment plans, deferment, discretionary forbearance and mandatory forbearance options.
Responsible Borrowing
The student should always borrow what is needed to assist with the cost of education and not just the amount that is eligible to be borrowed. After the student receives the offer letter, if the amount being received is more than needed to cover the cost of the current year’s tuition and expenses, then make sure to reduce or cancel the loan amount(s) not needed. This will reduce the overall student debt when entering repayment. To revise a loan award, please follow the procedure outlined in the award letter notification.
Parent PLUS Borrower Requirements
First time Direct Parent PLUS Loan borrowers must complete the following requirement before a loan disbursement will be applied to the student's account.
- Complete the PLUS Master Promissory Note (MPN) which is a legal document in which the parent promises to repay the amount borrowed and any accrued interest to the U.S. Department of Education. It also explains the terms and conditions of the loan(s). SNHU uses the multi-year MPN which means parents can borrow additional Direct PLUS Loans on a single MPN for up to ten years except for parents who obtain an endorser. Parents who obtain an endorser when borrowing a Direct PLUS Loan must complete a new MPN for each loan attached to an endorser.
Direct Parent PLUS Loan Instructions
Step 1: To apply for a Parent PLUS Loan:
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Parent Borrowers" dropdown
- Choose 'Apply for a PLUS Loan'
- Follow the instructions to apply for a PLUS Loan
If you are a first-time parent borrower, then you will need to complete the following:
Step 2: Complete a Parent PLUS MPN
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Parent Borrowers" dropdown
- Choose 'Complete Loan Agreement for a PLUS Loan (MPN)'
- Follow the instructions to complete the Master Promissory Note.
If a parent successfully appeals or obtains an endorser, the parent borrower is required to complete online credit counseling for PLUS Loan borrowers. The PLUS Credit Counseling will help parents understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.
Complete Online Credit Counseling Only for an Appeal or Endorsed PLUS Loan
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Parent Borrowers" dropdown
- Choose 'Complete PLUS Credit Counseling'
- Follow the instructions to complete the PLUS Credit Counseling
*If you do not remember your FSA ID, you can access it online at fsaid.ed.gov
National Student Loan Data System (NSLDS)
Although NSLDS is still available for students, currently FSA is moving toward a consolidation of all websites to a “one-stop shop” at studentaid.gov. Students will be able to get student aid information collected from NSLDS by logging into studentaid.gov using their FSA credentials. See FSA Partners for more information.
Graduate PLUS Loan Information
Graduate and professional degree students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance in the Direct Loan Program.
Graduate PLUS Loan Details
The Federal Direct Graduate PLUS Loan is an unsubsidized loan for students enrolled in a graduate degree or eligible certificate program. Graduate PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. The FAFSA application is required to be completed to be able to process a Graduate PLUS Loan. The lender is the U.S. Department of Education and you can learn more about this loan, the current interest rate and loan fee through the Federal Direct PLUS Loan Program.
Approval for the Graduate PLUS Loan is based on a student's credit check for adverse credit history and the student being enrolled at least half-time in a graduate degree program. A student can complete a PLUS Request on the Department of Education's website to apply for the Graduate PLUS Loan.
If a student is denied for a Graduate PLUS loan, then the student may:
- Appeal by documenting to the Department of Education that there are extenuating circumstances related to the student's adverse credit history; or
- Obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it; or
- Take no action on the PLUS application.
There are a number of advantages in considering the Graduate PLUS loan over a private educational loan. As a responsible borrower, you should decide which loan option best suits your needs. There is no obligation to accept this loan if approved.
Repayment
Repayment typically begins thirty days after full disbursement of the loan and the student will have ten years to repay the loan. The standard repayment term is ten years and the interest rate may vary depending on the disbursement date.
Visit the Federal Student Aid Site to learn more about PLUS repayment plans, deferment, discretionary forbearance and mandatory forbearance options.
Responsible Borrowing
The student should always borrow what is needed to assist with the cost of education and not just the amount eligible to be borrowed. After the student receives the offer letter, if the amount being received is more than needed to cover the cost of the current year’s tuition and expenses, then make sure to reduce or cancel the loan amount(s) not needed. This will reduce the overall student debt when entering repayment. To revise a loan award, please follow the procedure outlined in the award letter notification.
Graduate PLUS Borrower Requirements
First time Direct Loan Graduate PLUS borrowers must complete the following requirements before a loan disbursement will be applied to his/her account.
- Complete Entrance Counseling online which helps the student learns about a Federal Direct PLUS Loan, how the process works, and how to manage education expenses, and understand the rights and responsibilities as a borrower. If the student has not previously received a PLUS loan under the Direct Loan Program or the FFEL Program, then entrance counseling will be required even if you previously completed it for a subsidized or unsubsidized loan.
- Complete the PLUS Master Promissory Note (MPN) which is a legal document in which the student promises to repay the amount borrowed and any accrued interest to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). SNHU uses the multi-year MPN which means students can borrow additional Direct PLUS Loans on a single MPN for up to ten years except for students who obtain an endorser. Students who obtain an endorser when borrowing a Direct PLUS Loan must complete a new MPN for each loan attached to an endorser.
Direct Graduate PLUS Loan Instructions
Step 1: To apply for a Graduate PLUS Loan:
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Graduate/Professional Students" dropdown
- Choose 'Apply for a PLUS Loan'
- Follow the instructions to apply for a PLUS Loan
If you are a first-time borrower, then you will need to complete the following:
Step 2: Complete Entrance Counseling
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Graduate/Professional Students" dropdown
- Choose 'Complete Entrance Counseling'
- Follow the instructions to complete entrance counseling
Step 3: Complete a Graduate PLUS MPN
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Graduate/Professional Students" dropdown
- Choose 'Complete Loan Agreement for a PLUS Loan (MPN)'
- Follow the instructions to complete the Master Promissory Note.
If a student successfully appeals or obtains an endorser, the student borrower is required to additionally complete online credit counseling for PLUS Loan borrowers. The PLUS Credit Counseling will help students understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.
Complete Online Credit Counseling Only for an Appeal or Endorsed PLUS Loan
- Go to studentaid.gov
- Log in to your account (or create a new account) using your FSA ID.*
- Select "Graduate/Professional Students" dropdown
- Choose 'Complete PLUS Credit Counseling'
- Follow the instructions to complete the PLUS Credit Counseling
*If you do not remember your FSA ID, you can access it online at fsaid.ed.gov
Exit Loan Counseling Requirements
Similar to Entrance Loan Counseling, Exit Loan Counseling is a federal requirement of all students who received subsidized, unsubsidized or PLUS loans under the Direct Loan Program or the Federal Family Education Loan (FFEL) Program to complete once the student graduates, leaves school, or drops below half-time enrollment. As part of the Exit Loan requirements, student will be reminded of their obligations to repay, along with other information on deferment, forbearance, avoiding default, as well as how to make finances a priority.
National Student Loan Data System (NSLDS)
Although NSLDS is still available for students, currently FSA is moving toward a consolidation of all websites to a “one-stop shop” at studentaid.gov. Students will be able to get student aid information collected from NSLDS by logging into studentaid.gov using their FSA credentials. See FSA Partners for more information.
Private Loan Information
Alternative loans are private loans for students to help finance all or part of their cost of attendance at SNHU. Before applying for any of these loans, be sure you have exhausted all other means and have applied for need-based federal financial aid.
Private Loan Details
Private education loans are available through an outside lender to help finance the unmet cost of attendance at Southern New Hampshire University. We recommend that you apply for financial aid first by completing the FAFSA (Free Application for Federal Student Aid) before exploring private loans to ensure receipt of maximum federal, state, and university aid.
Approval and interest rates are based on the credit worthiness of the student borrower, coborrower, or cosigner and vary from lender to lender. Certification of the loan depends on multiple factors*. You should exhaust all federal, state, and university options including the Federal Parent PLUS Loan and Federal Graduate PLUS Loan before borrowing a private loan.
It is highly recommended that you apply for an entire year's worth of funding at one time thereby eliminating additional credit checks and processing time.
Questions to ask when exploring a private loan lender:
- What is my FICO score and/or the FICO of my co-signer?
- Are there loan fees or repayment fees?
- What is the interest rate range? Is the rate fixed or variable? If variable, how high can the rate go?
- When does repayment begin? Are in-school payments required? What will the monthly payment be? What will the total cost of the loan be?
- How do they evaluate the Co-Signer (credit score, history, debt-to-income ratio)? Can they be released after a certain number of payments?
- Are there interest rate reductions for automatic withdrawal payments or having an existing account? Are there deferment or forbearance options available?
- Is the loan forgivable in the case of death or disability?
Historical Private Loan Lender Resource
Below is a historical list of private loan lenders who have provided private educational loans to Southern New Hampshire University students during the past three completed financial aid years (19/20, 20/21, & 21/22) and continue to participate in the private education loan program as of July 1, 2022. This list is provided in alphabetical order and inclusion on this list is not an endorsement or recommendation by Southern New Hampshire University. Each lender's loan programs may have different requirements, so be sure to review with your lender regarding their loan programs that you qualify for to best suit your need.
This is not an exhaustive list of private loan lenders and SNHU does not guarantee the student’s satisfaction with the services and products provided by these or any other lenders. You have the right to select a lender of your choice regardless of this historical list.
*Be advised that some of the private loan lenders identified below may be limited to residents of certain states, specific to undergraduate and/or graduate status, programs & majors, may require SAP satisfaction, will not cover past due balances, and/or required membership. Students are encouraged to check and review with an individual lender for details.
Alaska Commission on Postsecondary Education
American Eagle Financial Credit Union
CEFCU Citizens Equity First Credit Union
Central One Federal Credit Union
CHESLA Connecticut Higher Education Supplemental Loan Authority
Clearview Federal Credit Union
College Foundation of North Carolina
FAME Finance Authority of Maine
Founder’s Federal Credit Union
KHESLC Kentucky Higher Education Student Loan Corporation
Manheim Central Student Loan Fund Association
MEFA Massachusetts Educational Financing Authority
Members 1st Federal Credit Union
Merrimack Valley Federal Credit Union
MN Self Minnesota Office of Higher Education
New Hampshire Education Assistance Foundation
NJ CLASS – Higher Education Student Assistance Authority
North Country Federal Credit Union
PHEAA Pennsylvania Higher Education Assistance Agency
RBFCU Randolph Brooks Federal Credit Union
RISLA Rhode Island Student Loan Authority
Saratoga's Community Federal Credit Union
St. Pius X Federal Credit Union
TDECU Texas Dow Employees Credit Union
TVFCU Tennessee Valley Federal Credit Union
UFPSL Union Federal Private Student Loans
UMass FIVE College Federal Credit Union
University of Wisconsin Credit Union
Valley 1st Community Federal Credit Union
VSAC Vermont Student Assistance Corporation
Under the Federal Truth in Lending Act (TILA), your private education loan lender is required to provide disclosure of loan terms and features at the time of application, a second disclosure after the initial application reaches an approval status and a final disclosure once the loan is accepted. After the final disclosure is sent, the lender also must provide the student with a 'right to cancel' period (3-6 days depending on mode of delivery). A self-certification form must be completed by the borrower and submitted to your lender before your loan may be disbursed to your SNHU student account.
Loan Counseling
Students who borrow under a Federal Loan Program (Direct Loans and Grad PLUS) for the first time at the university are required to complete Entrance Loan Counseling. If you are leaving the university (withdrawal or graduation), you must complete Exit Loan Counseling.
Loan Counseling Details
If you are a first time borrower of Direct Loans, it is a requirement that you complete Entrance Loan Counseling before any Direct loans can be disbursed.
Loan Counseling is designed to educate you, the student loan borrower, of your rights and responsibilities to Federal Student Loans.
- If you have a Direct Loans only, visit studentaid.gov to complete loan entrance counseling for your Direct Loans
- If you have a Grad PLUS Loan, visit studentaid.gov to complete loan entrance counseling for your Graduate PLUS Loan
Exit Loan Counseling
As a condition of borrowing Federal Direct Student Loans, borrowers are required to complete Exit Counseling when they leave the university for any amount of time (including taking a term off), graduate (including moving from one degree program to the next), or drop below half-time enrollment. Through Exit Counseling, a student borrower:
- Reviews their borrowing history and loan servicer
- Forecasts monthly payments and how they look under a variety of repayment plans
- Identifies strategies to successfully manage repayment
As a Federal Direct Student Loan borrower, we are required to remind you of your responsibility to complete Exit Counseling. Complete this counseling requirement online by signing into your http://www.studentloans.gov/ student borrower account.