Loan Information

Loan Information

Undergraduate

General Information for both Direct Federal Subsidized and Direct Unsubsidized loans

• Students must be enrolled at least half-time
• Students cannot be in default on any Federal Student Loan
• Student cannot owe an overpayment on a Federal Student loan or grant
• No repayment is required as long as the student is enrolled at least half-time
• One-time grace period of six-months after the student ceases to be enrolled at least half-time before repayment begins.
• Standard repayment is 10 years
• Current interest rates can be found here: https://studentaid.gov/understand-aid/types/loans/interest-rates
• Current origination fee is 1.057% for loans with a first disbursement on or after 10/1/20 and 1.059% for loans with a first disbursement prior to 10/1/20.
• Cumulative Maximum Lifetime Loan Limits
  • Dependent students: $31,000 (of which no more than $23,000 can be from subsidized loans)
  • Independent students: $57,500 (of which no more than $23,000 can be from subsidized loans)

William D. Ford Direct Federal Subsidized Stafford Loan   

• Restricted to undergraduate students only
• Awarded based on financial need as determined by completion of the FAFSA
• Interest is subsidized as long as the student is enrolled at least half-time

William D. Ford Direct Federal Unsubsidized Stafford Loan

• Interest begins accruing at the time of the loan disbursement

**New starting with 2026-2027 award year

• Annual loan amounts will be prorated based upon the student’s actual enrollment for the academic year. Students enrolled in less than 24 credit hours per academic year (fall/spring, 12 hours per semester) will have their annual loan amount reduced based on the percentage of the full-time enrollment per the Schedule of Reductions (SOR).  Students may have uneven disbursements for the academic year.
• Courses that a student receives a grade of a “W”, “MW”, an administrative “F” will now impact student eligibility. The SOR must consider any enrollment changes that occur after disbursement and may impact future disbursements.

Annual Maximums

• Loan Limits for dependent undergraduate students
  • 0-29 credit hours earned – eligible for up to $5,500 in Federal Direct loans
  • 30-59 credit hours earned – eligible for up to $6,500 in Federal Direct loans
  • 60 + credit hours earned- eligible for up to $7,500 in Federal Direct Loans
• Loan Limits for independent undergraduate students per the FAFSA or students that their parent has been denied the Parent PLUS Loan
  • 0-29 credit hours earned – eligible for up to $9,500 in Federal Direct loans
  • 30-59 credit hours earned – eligible for up to $10,500 in Federal Direct loans
  • 60 + credit hours earned- eligible for up to $12,500 in Federal Direct Loans

Graduate

General Information for Direct Unsubsidized loans

• Students must be enrolled at least half-time
• Students cannot be in default on any Federal Student Loan
• Student cannot owe an overpayment on a Federal Student loan or grant
• No repayment is required as long as the student is enrolled at least half-time
• One-time grace period of six months after the student ceases to be enrolled at least half-time before repayment begins.
• Standard repayment is 10 years
• Current interest rates can be found here: https://studentaid.gov/understand-aid/types/loans/interest-rates
• Current origination fee is 1.057% for loans with a first disbursement on or after 10/1/20 and 1.059% for loans with a first disbursement prior to 10/1/20.
• Cumulative Maximum Lifetime Loan Limits

The annual Direct Unsubsidized Loan limit remains unchanged at $20,500. However, there is a new $100,000 cap on the amount of Direct Subsidized/Unsubsidized Loans students can borrow in total (aggregate) for a graduate degree program and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study. Students who qualify for the legacy provision are exempt from the new Direct Loan aggregate and lifetime limits.

The One Big Beautiful Bill Act introduced changes the federal student loans beginning on July 1, 2026.  If the student meets the legacy provisions below, the Grad PLUS loan may be an option.

Legacy Provision

• Any type of Federal Direct Loan (unsubsidized or Graduate PLUS) was disbursed to the student’s account before July 1, 2026 AND
• The student must continuously remain enrolled in the same graduate program as they were prior to July 1, 2026
• If you qualify for the legacy provision, the annual maximum amount is up to the student’s Cost of Attendance minus any other financial aid
• No lifetime maximum applies
• The legacy provision is for the lesser of 3 academic years or for the remainder of the student’s program

**New starting with 2026-2027 award year

• Annual loan amounts will be prorated based upon the student’s actual enrollment for the academic year. Graduate students enrolled in less than 18 credit hours per academic year (fall/spring, 9 hours per semester) will have their annual loan amount reduced based on the percentage of the full-time enrollment per the Schedule of Reductions (SOR).  Students may have uneven disbursements for the academic year.
• Courses that a student receives a grade of a “W”, “MW”, an administrative “F” will now impact student eligibility. The SOR must consider any enrollment changes that occur after disbursement and may impact future disbursements.

Refer to our Loan Processes Page for information regarding the Graduate PLUS Loan.

Direct Federal Parent PLUS loan for Undergraduate Students (PLUS)

General Information

• Federal loan program for parents of dependent students
• Loan is in parent’s name
• Students must be enrolled at least half-time
• Approval based upon a credit check
• Students and/or Parent cannot be in default on any Federal Student Loan
• Student and/or Parent cannot owe an overpayment on a Federal Student loan or grant
• No repayment is required as long as the student is enrolled at least half-time
• Interest begins accruing at the time of the loan disbursement
• Repayment begins 60 days after the loan is fully disbursed. Parent may elect to defer payments until student ceases at least half-time enrollment during the application process
• If the Parent elects the deferment of payments, they have the option to also select the one-time grace period of six-months after the student ceases to be enrolled at least half-time before repayment begins.
• New tiered standard repayment plan (One Big Beautiful Bill Act – Important Definitions | Federal Student Aid)
• Current interest rates can be found here: https://studentaid.gov/understand-aid/types/loans/interest-rates
• Current origination fee is 4.228% for loans with a first disbursement on or after 10/1/20 and 4.236% for loans with a first disbursement prior to 10/1/20.
• Additional information regarding the Parent PLUS Loan: https://studentaid.gov/understand-aid/types/loans/plus/parent

Annual Maximum: $20,000 per academic year, per student unless the legacy provisions are met

Lifetime Maximum: $65,000 per student unless the legacy provisions are met

Legacy Provision

Signed in July 2025, The One Big Beautiful Bill Act introduced changes the federal student loans beginning on July 1, 2026.  If the student and family meet the legacy provisions below, these changes may not apply. 

• The student must continuously remain enrolled in the same program of study (same degree type) as they were enrolled in as of June 30, 2026 AND
• Any type of Federal Direct Loan (student – subsidized/unsubsidized, parent – Parent PLUS loan) was disbursed to the student’s account before July 1, 2026
• If you qualify for the legacy provision, the annual maximum amount is up to the student’s Cost of Attendance minus any other financial aid
• No lifetime maximum applies
• The legacy provision is for the lesser of 3 academic years or for the remainder of the student’s program

Additional Private Student Loans

Several financial institutions provide low-interest loans for students who might need additional assistance after federal loan options are used. The various loans differ by interest rate, interest capitalization, guarantee fees, and co-signer options. Students may need a creditworthy cosigner in order to obtain a private loan.  Many students have found that applying with a co-signer often results in a lower interest rate.  Interest begins accruing at disbursement but in most cases no payment is required until six months after graduation or a student drops below half-time enrollment. We recommend that students compare several lenders before selecting a private loan.

Loan Regulations

Rockford University is required by federal regulations to comply with individual lender terms and cannot certify a loan for more than your eligibility as determined by the student cost of attendance minus any other available financial aid.  If you have any questions regarding cost of attendance, please contact Student Administrative Services (SAS).   Rockford University does not participate in revenue-sharing practices, referral fee arrangements, or private loan application fee payments.  Schools are required to submit loan information to the National Student Loan Data System (NSLDS) and it will be accessible by guaranty agencies, lenders and other schools who are determined to be eligible, authorized users of NSLDS.

Borrow Responsibly

Please remember that borrowing a loan is a legal obligation and loans must be paid back with interest.  To learn more about responsible borrowing, click here.

Loan Repayment Estimator

Code of Conduct for Educational Loans