Student Loan Options
What are my loan options?
When you complete a FAFSA (Free Application for Federal Student Aid) to apply for federal and state financial assistance for college, student loans may be included as part of your school’s financial aid offer. A student loan is like any other type of loan — it’s money you borrow that must be paid back with interest, whether you earn your degree or withdraw before graduation. If your loan isn’t repaid, you could damage your credit score and face wage garnishment.
Types of Federal Loans
Direct Subsidized Loans are a type of federal student loan available to eligible undergraduate students who have demonstrated financial need. The U.S. Department of Education pays the interest on these loans while the borrower is in school at least half-time (typically six hours), during the grace period (usually six months after leaving school), and during deferment periods (periods when loan payments are postponed.) For more information on the Direct Subsidized Loan program, visit StudentAid.gov.
Direct Unsubsidized Loans are federal student loans available to both undergraduate and graduate students. Unlike a Direct Subsidized Loan, interest accrues on an unsubsidized loan from the time it’s disbursed, while the student is still in school, during the grace period and during deferment These loans, however, still offer important benefits, including fixed interest rates, no credit check requirement, and access to flexible repayment options. For more information on the Direct Unsubsidized Loan program, visit StudentAid.gov.
Direct PLUS Loans are federal student loans offered by the U.S. Department of Education to parents of dependent undergraduate students. This loan helps cover educational expenses not already met by other financial aid. The Parent Loan for Undergraduate Students (PLUS) is based on the borrower's credit, so parent borrowers must pass a credit check in order to qualify. Unlike some other federal loans, they are not subsidized, so interest rates begin accruing as soon as the loan is disbursed. Beginning July 1, 2026, Federal Parent PLUS Loans will be capped at $20,000 per year per student and $65,000 total per student over the course of undergraduate study. For more information on the Direct PLUS Loan program, visit StudentAid.gov.
Important to note:
Parents who take out a PLUS loan for their students’ education cannot transfer this loan to their student once they leave school.
2026-2027 Federal Student Loan Limits: What You Can Borrow
Understanding your federal student loan limits can help you plan how much to borrow — and avoid taking on more debt than you need. Review the chart on OklahomaMoneyMatters.org for details.
Download OKMM’s Borrow Smart from the Start booklet for more information about making better-informed borrowing decisions.
Borrow Smart is also available in Spanish.
The Application Process
To receive federal loans, all students must complete the FAFSA (Free Application for Federal Student Aid).
Your FAFSA results will determine your eligibility for a loan and whether you may need additional funding to help cover the gap between the cost of attendance and your other financial aid. Please be smart! Only apply for the amount of money you need to cover school expenses.
Your college financial aid office will notify you regarding the student loan application process. Please contact them with any questions you may have about student loan amounts and interest rates.
Private Student Loans
Private student loans (sometimes referred to as alternative loans) are loans offered by banks, credit unions, or private lenders to help students pay for college costs that aren’t covered by other financial aid. Unlike federal loans, they are not funded by the government and typically require a credit check or a cosigner. As changes take effect for the 2026–27 academic year — such as new federal borrowing limits and the elimination or reduction of some federal loan programs — more students and families will likely need private loans to fill the funding gap. In many cases, federal aid will no longer cover the full cost of attendance, especially for graduate and professional programs, making private loans a more necessary option to bridge the difference between college costs and available aid.
Private student loans can be helpful, but they come with important tradeoffs. On the positive side, they allow students to borrow enough to cover remaining costs and may offer flexible loan amounts or competitive interest rates for borrowers with strong credit. However, the drawbacks are significant: private loans often have higher or variable interest rates, fewer repayment options, and little to no access to benefits like income-driven repayment or loan forgiveness. They also place more financial responsibility on borrowers (and often their cosigners), making them riskier if income changes after graduation. Because of these factors, private loans are best used only after exhausting federal aid and other resources.
Where can I find my loan information?
StudentAid.gov is the U.S. Department of Education’s comprehensive database for all federal student aid information. This is a one-stop-shop for all of your federal student loan information.
At StudentAid.gov, you can find:
- Your student loan amounts and balances.
- Your loan servicer(s) and their contact information.
- Your grace period information.
- Your interest rates.
To access StudentAid.gov:
- Go to StudentAid.gov and select “Log In." Use your StudentAid.gov username and password to access your information.
- Navigate to the “My Aid” section, often found under your name or in the dashboard.
- For each loan you’ve taken out, you can view details such as loan type, current balance, loan status, and the name of your loan servicer.
- You can also view information about other federal financial aid you’ve received, such as Pell Grants.
- If you have questions about your student loan, you can contact your loan servicer directly using the information provided in the “My Aid” section.
StudentAid.gov can be a valuable tool for you in keeping track of your student loan information. Checking StudentAid.gov and communicating with your servicer will give you the information you need to stay on track for your student loan repayment.