Types of Loans

The amount in Direct Loan funds that you are eligible to borrow each academic year is limited by your grade level; whether you are a dependent or an independent student; your financial need; and your cost of attendance.

Stafford Loans

Stafford Loans can be:

Subsidised - The U.S. government pays interest on a subsidized loan while students are enrolled at university at least half-time and during grace and other deferment periods.

Unsubsidised - available to students who do not qualify for subsidised loans or to those that do, but require additional funds. You are responsible for the interest from the moment the money is disbursed. The interest on this loan can be paid monthly while you are at university or deferred until after you graduate or stop attending at least half-time.

Subsidised

Total (subsidised and unsubsidised)

Dependent undergraduate

First year

$3,500

$5,500

Second year

$4,500

$6,500

Third year and beyond

$5,500

$7,500

Independent undergraduate

First year

$3,500

$9,500

Second year

$4,500

$10,500

Third year

$5,500

$12,500

Graduate and professional students

All years of study

$0

$20,500 - unsubsidised only

Effective for loans first disbursed on or after 1st July 2012, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012. Direct loan borrowers currently receive an up-front 0.5 percent interest rebate and Direct PLUS borrowers receive a 1.5 percent interest rebate, which they retain if they make their first monthly payments on time.

Parent PLUS

Parents of dependant undergraduate students are able to take out loans in their names to help with their children's education. It is credit based and the amount you are able to borrow is the cost of attendance minus any Stafford Loan or other assistance related to your  enrolment, such as bursaries, scholarships, grants and awards.

Direct PLUS

Graduate students are able to take out PLUS loans. They are able to borrow the cost of attendance minus any Stafford loans already taken out and other assistance related to the student's enrolment, such as bursaries, scholarships, grants and awards.

Private Loans

A private alternative loan is a non-federal education loan, through a private lender, typically in the student’s name and requiring a cosigner. Approval and interest rates are based on the creditworthiness of the borrower and cosigner. Each alternative lender has different eligibility requirements, loan rates, terms, and conditions.