Types of Undergraduate Financial Aid: Loans
To assist families in financing educational costs, UMass Boston offers several types of loans, including those listed below. These programs are either federally funded, state funded, or university funded. When your financial aid application is complete, UMass Boston considers you for all programs administered by FAS. The type of loan offered to each student depends on eligibility, need, and available funds. All loans require repayment.
FEDERAL DIRECT SUBSIDIZED LOAN: This is a loan from the Federal government. Students must meet the eligibility requirements for aid, must have need, and be enrolled at least half-time (six credits or credit equivalencies). This loan is available to undergraduate students, including students seeking an additional baccalaureate degree. The government pays the interest while the student is enrolled at least half-time, so no interest is accrued. Repayment of interest and principal begins six months after graduation (the Grace Period) or when the student ceases to be enrolled at least half-time. Additional information on the Direct Loan Program is available here.
FEDERAL DIRECT UNSUBSIDIZED LOAN: This loan differs from the Subsidized loan in two respects: It is not based on need and interest begins to accrue from the date of disbursement. The student is responsible for the interest payments and has the option to (1) pay the interest during periods of enrollment, deferment, and/or forbearance or (2) postpone interest payments until repayment of the loan. Note: If option (2) is chosen, the unpaid accrued interest is added to the principal (capitalization), thereby increasing the total amount the student has to repay. Students are strongly encouraged to pay the interest as it accrues. Additional information on the Direct Loan Program is available here.
FEDERAL PERKINS LOAN: This is a low-interest (5% fixed) loan from the Federal government and is managed by the Perkins Office at UMass Amherst. Students must meet the eligibility requirements for aid, have need, and be enrolled at least half-time. Repayment begins nine months after graduation or when the student ceases to be enrolled at least half-time. Awards are based on program regulations and available funds. If you have been offered and choose to accept this loan, complete the Perkins Loan Entrance Counseling here and complete the Perkins Loan Master Promissory Note (PLMPN) that will be sent to your home address in a separate mailing.
MASSACHUSETTS NO INTERESTLOAN (NIL): This is a no-interest loan from the state of Massachusetts awarded to students who have an EFC of less than $6,500 and meet Massachusetts residency requirements. Repayment begins six months after graduation or when the student ceases to be enrolled at least half-time.
FEDERAL DIRECT PLUS LOAN: The Federal Direct Parent Loan for Undergraduate Students (PLUS) is a low interest, credit based loan that enable parents or stepparents of dependent undergraduate students to borrow directly from the U.S. Department of Education to help pay for their children's educational expenses. The student must be enrolled at least half-time and the amount the parents can borrow is limited to the difference between the child's financial aid and Cost of Attendance. For additional information or to apply for the Federal PLUS Loan go here.
ALTERNATIVE LOAN PROGRAMS: These are private loans available to students and parents of dependent students. There are many options to borrow through educational lenders and other financial institutions. For details about these loans, please visit our Alternative Loan Programs page.