Loans for Graduate Programs
One Big Beautiful Bill Act
With the passing of the One Big Beautiful Bill Act, significant changes have been made to federal graduate student loans that will impact graduate and professional students.
Beginning July 1, 2026, graduate students will fall under different federal loan programs and borrowing limits depending on when they begin their program of study:
-
New Students
Students who begin their program on or after July 1, 2026 will be subject to the updated federal loan programs, limits, and terms established under the new legislation as outlined below. -
Legacy Provision Students
Students who began their program prior to July 1, 2026 fall under Legacy provisions. These students will continue under the current federal loan structure for up to three academic years or for the remainder of their current program, whichever is shorter. Throughout this page, we have clearly noted where Legacy provisions differ and what applies to these students.
Stafford Loans
Federal Direct Unsubsidized Stafford Loans are federal student loans offered by the U.S. Department of Education for eligible students to help cover the cost of higher education.
Unsubsidized Stafford Loans:
- Require at least half time enrollment (4 credits)
- Amounts will be prorated based on enrollment status in direct proportion to the percentage of full-time enrollment.
- Enter repayment six months after graduation or when you cease attending a place of higher education at least half time (4 credits)
- Are set at a fixed-interest rate
- Have an origination fee deducted from the loan funds by the Department of Education
- Accrue interest at the point the loan is disbursed onto your student account (typically 10 days before your first class)
Unsubsidized Stafford Loans are available to undergraduate and graduate students, regardless of financial need. Graduate students are not eligible for subsidized Stafford Loans.
For more information on the current interest rates and origination fees, see Studentaid.gov.
How much should I request for my Stafford Loan?
Stafford Loans have a loan fee of 1.057%. A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow. Use the form below to determine how much you should request to make sure you receive all you need in your student account.
Annual Stafford Loan Limits
| Degree Type | Loan Limit (July 1, 2026) | Loan Limit (Legacy Provision) |
|---|---|---|
| Graduate Annual Loan Limit | $20,500 (unsubsidized only) | $20,500 (unsubsidized only) |
|
Professional Annual Loan Limit (PsyD and MDiv programs) |
$50,000 (unsubsidized only) |
MDiv - $20,500 (unsubsidized only) PsyD - $37,167 (unsubsidized only) |
Loans cannot exceed the Cost of Attendance minus other financial aid.
Aggregate Stafford Loan Limits
| Degree Type | Loan Limit (July 1, 2026) | Loan Limit (Legacy Provision) |
|---|---|---|
| Graduate Annual Loan Limit | $100,000 (not including undergrad loans) | $138,500 (including undergrad loans) |
|
Professional Annual Loan Limit (PsyD and MDiv programs) |
$200,000 (not including undergrad loans) |
MDiv - $138,500 (including undergrad loans) PsyD - $224,000 (including undergrad loans) |
Lifetime Stafford Loan Limits
A lifetime loan limit of $257,500 applies to all Direct Subsidized and Unsubsidized loans borrowed at any level, including amounts repaid, forgiven, canceled, or discharged.
This lifetime limit does not apply to students under legacy provisions.
Loan Disbursement Timeline
Loan funds will be applied to your student account (disbursed) 10 days before the start of your first class if you have:
- Accepted the loans in your award package in MyGeorgeFox
- Completed all required documents on your To Do List in MyGeorgeFox
- Enrolled in a minimum of 4 credit hours (half-time enrollment)
Excess funds are sent (as a refund) within 6 to 10 business days beginning the first week of class each semester. For detailed direct deposit and refund information, please contact Student Accounts.
Federal Student Loan Repayment
Understanding your loan repayment options is a smart way to approach using student loans. Studentaid.gov is your hub for federal student loan repayment questions and answers. Once you log in, you can view your current student loan balance and plan for loan repayment, plus get a link to your loan servicer’s website.
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. Once your grace period is up, it will be important to choose the right payment plan option that works for you.
Start by reviewing Student Aid's Repaying Student Loans 101 site. It walks you step-by-step through loan repayment and provides a helpful FAQ! You can view information about repayment plans and use the Loan Simulator to see a detailed plan of specific loan repayment options based on your own borrowing.
Some students may also qualify for federal student loan forgiveness — click the link to review eligibility requirements.
Stafford Loans FAQ
No! Unsubsidized Stafford Loans do not accrue interest until we actually disburse them onto your account. We always disburse financial aid 10 days before classes begin.
According to the Department of Education's definition of professional programs, the following will be considered "professional" for federal Direct Loan limit purposes and will qualify for the higher loan limits:
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Doctor of Psychology (PsyD)
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Master of Divinity (MDiv)
All other graduate programs at George Fox are considered standard graduate programs for federal Direct Loan limit purposes.
Both a Master Promissory Note (MPN) and Entrance Loan Counseling must be completed before we can disburse your Stafford Loans. Entrance Loan Counseling is training that helps students understand their rights and responsibilities when taking out federal student loans. It ensures that you understand the terms and conditions of your loan(s), including how to avoid default and delinquency, how interest works, and repayment options. A Master Promissory Note is a document that outlines the terms and conditions of the Stafford Loan, including the promise to repay the loan and any interest and fees to the U.S. Department of Education.
Interest rates vary from year to year and will always be posted here in early summer.
Subsidized Stafford Loans are considered need-based and do not accrue interest while you are in school. Grad students do not qualify for subsidized loans. Unsubsidized Stafford Loans do accrue interest while you are in school.
Since subsidized Stafford Loans are based on financial need, only those who demonstrate need based on federal formulas will be eligible for a subsidized loan. Grad students do not qualify for subsidized loans.
You will accept your Stafford Loans through your MyGeorgeFox account under the financial aid tile. We have a very helpful tutorial video here that walks you through the step-by-step process. If you do not want the full amount offered to you, you’ll select the “reduce” option in MyGeorgeFox and then specify how much you want to accept.
We will disburse your Stafford Loans one semester at a time and always 10 days before classes start, pending the items we mention in our last question below.
Stafford Loans are for the student and are therefore in the student’s name. Stafford Loans can never be transferred to a parent to pay off.
While you choose to accept your Stafford Loans through your MyGeorgeFox account, these are not loans you’re borrowing from our school directly. We offer them on your financial aid package on behalf of the Department of Education, and if you choose to accept them, the loans are given through the federal government and repaid back to them.
You will not see any borrowing history on studentaid.gov until we disburse your loan(s). Once they’re disbursed, they will appear on your aid history on studentaid.gov. Get logged in using your FSA ID and password and navigate to the “my aid” section to see your loans, interest accrual, and lender’s contact information.
No! In fact, we encourage you to make payments on your loans if you can while you’re enrolled in school. This is a great way to keep the costs down once you graduate.
This will vary depending on how much you borrow and which repayment options you choose to pursue. Studentaid.gov has great loan repayment information here that we encourage you to check out.
In order for us to disburse your Stafford Loans, you need to complete any pending financial aid To Do List items on your MyGeorgeFox account. This can include, but is not limited to, Entrance Loan Counseling, MPN, verification documentation, proof of U.S. citizenship, SAP appeal, etc. This is why it’s very important to check your MyGeorgeFox To Do List regularly and take care of items in a timely manner. You will also need to be enrolled at least half-time (4 credits) each semester you plan to borrow the loans, and be in good Satisfactory Academic Progress (SAP) standing.
Private Loans
Private (or alternative) loans are loans that are not part of the federal financial aid program but are instead offered through a private loan lender.
Ready for a quick overview? Here we go!
- Borrower: Typically private loans would be in your name. In some cases, you may need a cosigner on your loan to help you qualify or get you a better interest rate.
- Loan Amount: The loan total cannot exceed the Cost of Attendance (COA) minus all other financial aid (COA – all other financial aid = maximum private loan you can borrow).
- Private loans have no loan origination fee, so you should apply for the exact amount you want to receive.
- Interest: There are both fixed and variable interest rate options. We generally recommend going with a fixed rate loan because the interest will stay the same for the entire loan term.
- Interest rates and fees also vary greatly and may depend on the borrower’s credit score and history. The lender will run a hard credit check to pull this information.
- Interest begins accruing at the point the loan is disbursed onto your student account (this is typically 10 days before the semester begins).
- Repayment: Some lenders will want you to begin repayment of the loan while you’re enrolled in school, but most offer loan deferment, meaning no payment on the loan is required while you’re enrolled at least half-time (4 credits).
Where do I find a private loan?
These resources will help you make an informed decision about the most appropriate loan for you:
- Check with your personal bank or credit union.
- Try ELMSelect to view and compare lenders that have provided private loans to George Fox students in the past.
- Please note that you are not required to select a lender on this list.
- You can also visit ConsumerAffairs.com for helpful tips on how to choose a student loan lender.
Your Financial Aid Counselor cannot recommend any private lender but can help you understand your options.
Additional Private Loan Info
- Lenders should be transparent with their terms and conditions. Avoid lenders who do not review the loan or financial agreement details or are unwilling to answer your questions about the loan details and requirements.
- Make sure you understand your repayment timeline. Some lenders may require you to make payments on the loan while you are enrolled in school, while others may offer a grace period that defers the payments until after graduation. Additionally, the repayment length can vary from a few years to as long as 25 years, and some lenders may not have graduated repayment options that start out with lower payments right after graduation. Make sure you understand these aspects of the loan before borrowing.
- In addition to the interest rate, a lender may charge additional fees, including, but not limited to, application, late payment, payment return, forbearance, and deferment fees. Make sure you read all of the loan terms to see if the lender has any of these built into the contract.
- Look out for unresponsive customer service or lenders who may not be entirely forthcoming when responding to specific questions, and check for negative reviews with the Better Business Bureau.
- Try to avoid variable interest rates if possible.
- Borrow only what you need to cover costs.
- If you requested more than you needed, return excess funds to your lender. We have 14 days after your loan has disbursed to return the funds for you — just email your Counselor! After that, you can make the payment directly to your lender.
- Think critically before using loan funds to pay for non-essential items.
- Pay the interest on your loan while you are in school if you can.
Grad PLUS Loans (Legacy Provision Students Only)
The One Big Beautiful Bill Act discontinued the Federal Grad Plus loan program for new borrowers as of July 1, 2026. Under legacy provisions, qualifying students may continue to borrow under current loan limits for the duration of their program or for up to three academic years, whicever is shorter.
Federal Grad PLUS Loans are federal loans provided by the U.S. Department of Education that graduate or professional degree students can use to help pay education expenses. To be eligible, borrowers must apply online at Studentaid.gov and be approved. The maximum loan amount is the student’s Cost of Attendance minus other aid.
Watch our tutorial video about PLUS Loans
Here are some quick facts about Grad PLUS Loans:
- The U.S. Department of Education is the lender.
- PLUS Loans are approved based on a credit check of the student.
- The credit check is not a review of your credit score, but for adverse credit history.
- The maximum loan amount is the student’s Cost of Attendance minus any other financial aid received.
- PLUS Loans have an origination fee deducted by the Department of Education.
- You’ll receive an automatic deferment of repayment while you’re enrolled in school at least half time, and for an additional six months after you graduate, leave school, or drop below half-time enrollment. You don’t have to start making payments until after this deferment period ends.
The PLUS Loan must be applied for each year the student wishes to borrow. Additional information is available at Studentaid.gov.
How much should I request for my PLUS Loan?
PLUS Loans have a loan fee of 4.228%. A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow. Use the form below to determine how much you should request to make sure you receive all you need in your student account.