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, applying for grants and scholarships, participating in work-study programs, or leveraging tuition assistance and military discounts — it still may not be possible for you to pay out of 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 Student Financial Services about smart borrowing practices and to get all the information you need to fund your education. 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 understand that you don't need to take out loans for the full amount for which you’re approved.
How to Understand Student Loans:
College Loans Explained
Learning how to understand student loans is a crucial step in paying for college. By having your college loans explained, you can put yourself in a better place to pay them back when the time comes.
2022 Student Loan Forgiveness Plan:
What Loans Qualify?
Have you learned what you need to know about the new loan forgiveness plan? Many graduates with thousands of dollars in debt were relieved to hear about the student loan debt forgiveness that was announced in August 2022.
Direct Loan Information
Southern New Hampshire University participates in the Direct Loan program. Direct Loans are fixed-rate student loans for undergraduate and graduate students attending college at least half-time. They're the most common type of financial aid to assist with paying for school.
Direct loans are available to eligible students who file a valid Free Application for Federal Student Aid (FAFSA). Review your SNHU financial aid offer to understand your eligibility for direct loans. For more information on terms and interest rates, visit the Federal Student Aid website.
Direct Subsidized & Unsubsidized Loans
Direct Subsidized Loans are fixed rate loans that are based on financial need.
Direct Unsubsidized loans are fixed rate loans that are not based on financial need.
Direct Subsidized & Unsubsidized Loan Details
Direct Subsidized Loans are offered based on financial need. The government pays the interest on Direct Subsidized Loans while you’re attending school at least half-time and during the six-month grace period.
Direct Unsubsidized Loans are loans with interest that are not paid by the government. Unlike subsidized loans, the borrower is responsible for the interest from the date the loan is disbursed, even while you’re still in school. You may defer paying the interest while you’re in school by capitalizing the interest; however, this capitalization 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 their student account:
- Complete entrance counseling on studentaid.gov, which provides information on Direct Loans, how the borrowing process works, managing educational expenses, and understanding borrower rights and responsibilities.
- Complete the Master Promissory Note (MPN) on studentaid.gov, which is a legal document that says 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). SNHU uses the multi-year MPN, which means students can borrow additional Direct Loans on a single MPN for up to 10 years.
Borrower Rights and Responsibilities
As a Direct Loan borrower, you have 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 available repayment options.
- 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 Direct Loan borrower, you’re 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, employment status or satisfaction with the education.
- Completing exit counseling when you leave school or drop below half-time enrollment.
- Notifying the lender/servicer within 10 days if there is a change to your 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 you’re 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 | Full-Time Dependent Student | Full-Time 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 | $100,000 |
| Combined (undergraduate, graduate, and professional degrees) |
$257,500 |
Responsible Borrowing
You should borrow only what you need to help with the cost of education. After you receive your financial aid offer, you may decrease or decline loans that you don’t need to fund your education. This will reduce your overall student debt when you enter repayment. To revise a loan offer, follow the procedure outlined in your financial aid offer and contact Student Financial Services for more guidance.
Direct Unsubsidized Loan Instructions
Students are required to sign a Master Promissory Note (MPN) and complete online entrance counseling before receiving a direct loan disbursement.
If you are a first-time Direct Subsidized and/or Unsubsidized Loan borrower:
Step 1: Complete a loan entrance counseling session:
- Go to studentaid.gov
- Click the Log in to Start button next to your correct student type.
- Log in using your FSA ID.
- Follow the instructions to complete loan entrance counseling.
Step 2: Complete a Master Promissory Note (MPN):
- Go to studentaid.gov
- Click the Log in to Start button next to your correct student type.
- Log in using your FSA ID.
- Follow the instructions to complete a Master Promissory Note.
If you do not remember your FSA ID, you can access it online at https://studentaid.gov/help-center/answers/article/forgot-my-fsa-id-username-and-password.
Exit Counseling
After you graduate, drop to a less than half-time status or are no longer enrolled, you are required to complete exit counseling. Exit counseling prepares a borrower for repayment by reviewing borrowing history, identifying loan servicers, forecasting monthly payment schedules, identifying repayment plans and providing strategies for successful repayment.
To complete this counseling requirement online:
- Go to studentaid.gov.
- Click the Log in to Start button next to your correct student type.
- Log in using your FSA ID.
- Follow the instructions to complete Loan Exit Counseling.
Student Aid History
Students are encouraged to monitor their Direct Loan and federal grant usage on studentaid.gov.
Repayment
Repayment for Direct Loans begins six months after you graduate, withdraw, stop attending or your enrollment status is less than half-time. Interest rates may vary depending on the type of Direct Loan and the disbursement date.
Visit the Federal Student Aid site to learn more about the repayment plans and deferment/forbearance options available to you depending on the type of loan borrowed.
Loan Servicer
A loan servicer is a company that handles the billing and other services on your federal student loans. 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 and/or loan consolidation, and will assist you with other tasks related to your federal student loans. It’s 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.
Direct Parent PLUS Loan Information
The Parent PLUS Loan is a federal loan that allows parents of undergraduate students to borrow up to $20,000 per student per award year and a $65,000 lifetime aggregate limit per dependent student.
Direct Parent PLUS Loan Details
The 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 is required 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 fees through the 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 application on studentaid.gov. A parent is required to use their own FSA ID to complete the PLUS Request.
If a parent is denied for a Parent PLUS Loan, then the parent may choose to:
- Appeal by documenting to the U.S. Department of Education that there are extenuating circumstances related to the parent's adverse credit history.
- Obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if the primary borrower does not repay it. If you’re a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.
- 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 Direct Unsubsidized Loans. Third- and fourth-year students (59 credits and above) may be eligible for an additional $5,000.
There are advantages to considering the Parent PLUS Loan over a private educational loan. As a family, you should decide which loan option best suits your needs. There’s no obligation to accept this loan if approved.
Repayment
Additional information about PLUS Loan repayment, payment plans, and deferment is available on studentaid.gov.
Responsible Borrowing
You should only borrow what you need to assist with the cost of education and not just the amount that is eligible to borrow. After you receive your offer letter, if the amount being received is more than needed to cover the cost of the current year’s tuition and expenses, then you’ll need to make sure to reduce or cancel the loan amount(s) not needed. This will reduce your overall student debt when entering repayment. To revise or cancel a loan, follow the procedure outlined in the initial financial aid offer email.
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 10 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.
Borrower Rights and Responsibilities
As a Direct Loan borrower, you have 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 available repayment options.
- 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 Direct Loan borrower, you’re 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, employment status or satisfaction with the education.
- Completing exit counseling when you leave school or drop below half-time enrollment.
- Notifying the lender/servicer within 10 days if there is a change to your 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 the student leaves school unless in the grace period or granted a forbearance or deferment.
- Informing the lender/servicer of anything that might change the eligibility for an existing deferment.
Annual Borrowing Limits
A parent can borrow an amount that is equal to or less than the student's Cost of Attendance (COA) up to $20,000 annually.
Direct Parent PLUS Loan Instructions
Step 1: Apply for a Parent PLUS Loan:
- Go to studentaid.gov
- Click the Learn More button next to the Direct PLUS Loan Application for Parents.
- Log in using your FSA ID.
- Follow the instructions to complete a Parent PLUS Loan application.
If you are a first-time borrower:
Step 2: Complete a Parent PLUS Master Promissory Note (MPN):
- Go to studentaid.gov
- Click the Log in to Start button next to I’m a Parent of an Undergraduate Student.
- Log in using your FSA ID.
- Follow the instructions to complete a Parent PLUS Loan MPN.
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 can 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 PLUS Credit Counseling for an Appeal or Endorsed PLUS Loan:
- Go to studentaid.gov
- Click the Log in to Start button under Complete PLUS Credit Counseling.
- Log in using your FSA ID.
- Follow the instructions to complete PLUS Credit Counseling.
If you do not remember your FSA ID, you can access it online at https://studentaid.gov/help-center/answers/article/forgot-my-fsa-id-username-and-password.
Loan Servicer
A loan servicer is a company that handles the billing and other services on your federal student loans. 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 and/or loan consolidation, and will assist you with other tasks related to your loans. It’s 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 studentaid.gov.
Direct Graduate PLUS Loan Information
The Graduate PLUS Loan program will be discontinued as of July 1, 2026 per requirements under the Reconciliation Bill. There may be legacy provisions available to students who received a Direct Loan disbursement prior to June 30, 2026. Contact Student Financial Services for more information.
For Graduate PLUS Loan borrowers eligible under legacy provisions, additional information is available below.
Graduate and professional degree students are eligible to borrow under the PLUS Loan Program up to your cost of attendance minus other estimated financial assistance in the Direct Loan Program.
Direct Graduate PLUS Loan Details
The 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 is required to be eligible for 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 fees through the Federal Direct PLUS Loan Program.
Approval for the Graduate PLUS Loan is based on your credit check for adverse credit history and being enrolled at least half time in a graduate degree program. You can complete a PLUS application on studentaid.gov.
If you’re denied for a Graduate PLUS loan, then you may:
- Appeal by documenting to the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history.
- 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.
- 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
Additional information about PLUS Loan repayment, payment plans, and deferment is available on studentaid.gov.
Responsible Borrowing
You should always borrow what is needed to assist with the cost of education and not just the amount eligible to be borrowed. If the amount being offered 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 offer, contact Student Financial Services.
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 provides information about the Direct PLUS Loan program, how the application process works, how to manage education expenses, and understanding the rights and responsibilities as a borrower. If you have 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 the loan(s). SNHU uses the multi-year MPN, which means you can borrow additional Direct PLUS Loans on a single MPN for up to 10 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.
Borrower Rights and Responsibilities
As a Direct Loan borrower, you have 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 available repayment options.
- 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 Direct Loan borrower, you’re 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, employment status or satisfaction with the education.
- Completing exit counseling when you leave school or drop below half-time enrollment.
- Notifying the lender/servicer within 10 days if there is a change to your 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 you’re 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
A graduate student can borrow an amount that is equal to or less than your Cost of Attendance (COA).
Direct Graduate PLUS Loan Instructions
Step 1: Apply for a Graduate PLUS Loan:
- Go to studentaid.gov
- Click the Learn More button next to I am a Graduate or Professional Student.
- Log in using your FSA ID.
- Follow the instructions to complete a Graduate PLUS Loan application.
If you are a first-time borrower:
Step 2: Complete a Graduate PLUS Master Promissory Note (MPN):
- Go to studentaid.gov
- Click the Log in to Start button next to I’m a Graduate/Professional Student.
- Log in using your FSA ID.
- Follow the instructions to complete a Graduate PLUS Loan MPN.
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 in making careful decisions about taking on student loan debt.
Complete PLUS Credit Counseling Only for an Appeal or Endorsed PLUS Loan:
- Go to studentaid.gov
- Click the Log in to Start button under Complete PLUS Credit Counseling.
- Log in using your FSA ID.
- Follow the instructions to complete PLUS Credit Counseling.
If you do not remember your FSA ID, you can access it online at https://studentaid.gov/help-center/answers/article/forgot-my-fsa-id-username-and-password.
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. You must complete this requirement once you graduate, leave school, or drop below half-time enrollment. As part of the exit loan requirements, you'll be reminded of your obligations to repay, along with other information on deferment, forbearance and avoiding default.
Loan Servicer
A loan servicer is a company that handles the billing and other services on your federal student loans. 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 and/or loan consolidation, and will assist you with other tasks related to your federal student loans. It’s 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 studentaid.gov.
Private Loan Information
Private loans from an outside lender may be used to help finance all or part of the cost of attendance at SNHU.
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 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 (22/23, 23/24 & 24/25) and continue to participate in the private education loan program as of July 1, 2025. 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 Satisfactory Academic Progress (SAP), 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
Arkansas Student Loan Authority
CEFCU Citizens Equity First Credit Union
Central One Federal Credit Union
CHESLA Connecticut Higher Education Supplemental Loan Authority
Clearview Federal Credit Union
FAME Finance Authority of Maine
Founder’s Federal Credit Union
Higher Education Servicing Corporation
KHESLC Kentucky Higher Education Student Loan Corporation
MEFA Massachusetts Educational Financing Authority
Members 1st Federal Credit Union
MN Self Minnesota Office of Higher Education
New Hampshire Education Assistance Foundation
Newington Student Assistance Fund
NJ CLASS – Higher Education Student Assistance Authority
North Carolina Student Assistance Loan
North Country Federal Credit Union
Ontario Shores Federal Credit Union
Pacific Cascade Federal Credit Union
PHEAA Pennsylvania Higher Education Assistance Agency
RISLA Rhode Island Student Loan Authority
Rivermark Community Credit Union
Saratoga's Community Federal Credit Union