Student Loans Available to Undergraduates


Student Loans Available to Undergraduates

Federal Direct Loan Program

Matriculated students enrolled at least half time may borrow student loans through the Federal Direct Student Loan Program. Students may borrow a maximum of $5,500 for their freshman year, $6,500 for their sophomore year, and up to $7,500 for both their junior and senior years. Students apply for these loans by completing the Free Application for Federal Student Aid (FAFSA).

There are two types of Federal Direct Student Loans:

Subsidized Loan

If a student demonstrates financial need based on the FAFSA, the federal government will pay the interest charge while the student is enrolled at least half-time. Students must pay the principle and interest during the repayment period (6 months) following graduation or if they withdrawal from the university.

Unsubsidized Loan

All matriculated students enrolled at least half-time may receive a Federal Direct Unsubsidized Loan regardless of family income. The interest is not paid on the student's behalf. Borrowers may choose to make payments while in school, or allow the interest to accumulate onto the balance. 

Please click here to view the current interest rates.

Parent PLUS Loan

Parents of matriculated, dependent, undergraduate students who are enrolled at least half-time and making satisfactory academic progress may borrow up to the cost of education from the federal government. Applying parents must be citizens or eligible non-citizens of the United States and pass a financial credit check.  Parents determined to have adverse credit will not be approve.  Parents who are denied a PLUS loan may apply with a qualified endorser.  An endorser is someone who agrees to repay the loan if the parent does not repay. 


A parent of a dependent, undergraduate student may complete a Parent PLUS Application each year with their FSA ID.  The custodial parent and the noncustodial parent are eligible to borrow from the PLUS loan program, provided the combined amounts borrowed do not exceed the cost of attendance for that academic year.

Interest Rates

Direct PLUS Loans first disbursed on or after July 1, 2016, and before July 1, 2017, the interest rate is 6.31%.  These are fixed interest rates for the life of the loan.


Repayment begins within 60 days after disbursement. Parent PLUS loan borrowers may choose to have repayment deferred (postponed) while the student, for whom the parent borrowed, is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower. The repayment term is up to 10 years. Unless requested, there is no six month grace period. Payments can be deferred if the parent is in school themselves. Please note, since the interest rate is not subsidized, it will continue to accrue and will be capitalized when the loan enters repayment.

Alternative/Private Loans

Rowan University does not maintain a preferred lender list for private alternative education loans, nor are we able to recommend specific lenders. However, over the last several years, our students and parents have used the lenders found on the list provided in the link below to meet their education loan borrowing needs. Using ELMSelect, a service provided by ELM Resources, students and parents can compare and contrast the terms and conditions of each loan option and select a private education loan that best suits their financial circumstances. Students are not limited to the lenders appearing on the ELMSelect list and may choose any lender that best suits their educational borrowing needs. 

This list is provided as a convenience as the choice of a lender always rests with the borrower. The Financial Aid Office will process private loans through any lender selected by a student, even if not listed here. Students have the right and are welcome to borrow with any private lender of their choosing and are encouraged to perform their own due diligence in seeking a private loan lender. In addition to this list, we suggest that you research federal credit unions (if you are a member) as many offer educational alternative loans products.

NOTE: Private Alternative Loans are credit-based. Many undergraduate students may be required by the lender to attain a credit-worthy cosigner.

ELM Select Private/ Alternative Loan Lenders

Additionally the State offers NJCLASS loans, visit:


For information about repaying your federal student loans, visit: