Educational Borrowing

Federal Loans

Direct Student Loans

Federal Direct Student Loan recipients borrow directly from the federal government.

Undergraduate Federal Direct Student Loans can be subsidized – meaning interest does not accrue while the student is enrolled at least half-time, or unsubsidized – interest begins accruing at the time of disbursement. Subsidized loan eligibility is need based which is determined by FAFSA results and the amount of other financial assistance received. Changes in financial assistance or financial need can affect a student’s eligibility for subsidized loans.

All Federal Direct Student Loans for graduate students are unsubsidized.

In order to be eligible for a Federal Direct Loan a student must be enrolled at least half-time at Bradley University.

Semester	Undergraduate	Graduate
Fall	6	4
Spring	6	4
Summer	6	3

Federal Direct Student Loans must be repaid. Repayment begins six months after a student graduates, leaves school, or drops below half-time enrollment. While enrolled in college at least half-time there is no repayment obligation.

The interest rate on a Federal Direct Student Loan varies depending on the initial date of disbursement. The table below shows the interest rates for Federal Direct Subsidized and Unsubsidized Loans.

Initial Date of Disbursement	Undergraduate	Graduate
July 1, 2020 – June 30, 2021	2.75%	4.30%
July 1, 2021 – June 30, 2022	3.73%	5.28%
July 1, 2022 – June 30, 2023	4.99%	6.54%
July 1, 2023 – June 30, 2024	5.50%	7.05%
July 1, 2024 – June 30, 2025	6.53%	8.08%

Interest rates for prior years.

The interest rate on a Federal Direct Student Loan varies depending on the initial date of disbursement. The table below shows the interest rates for Federal Direct Subsidized and Unsubsidized Loans.

Initial Date of Disbursement	Undergraduate	Graduate
July 1, 2020 – June 30, 2021	2.75%	4.30%
July 1, 2021 – June 30, 2022	3.73%	5.28%
July 1, 2022 – June 30, 2023	4.99%	6.54%
July 1, 2023 – June 30, 2024	5.50%	7.05%
July 1, 2024 – June 30, 2025	6.53%	8.08%

Interest rates for prior years.

The federal government deducts an origination fee from all federal loans that are disbursed. The current origination fee for all Federal Direct Subsidized and Unsubsidized Loans is 1.057%.

There are annual borrowing limits for undergraduates who borrow Federal Direct Student Loans based on the student’s year in school which are shown in the table below. In addition to the annual borrowing limits there are also lifetime borrowing limits for undergraduate students. The lifetime limit is $31,000 for dependent undergraduate students and $57,500 for students that qualify for additional unsubsidized eligibility*.

Year in School	Dependent Student	Additional Unsubsidized Eligibility*
First Year Undergraduate	$5,500 (max $3,500 Subsidized)	$4,000
Second Year Undergraduate	$6,500 (max $4,500 Subsidized)	$4,000
Third Year and Beyond Undergraduate	$7,500 (max $5,500 Subsidized)	$5,000

*Additional eligibility is granted to independent undergraduate students or undergraduate students whose parents are unable to obtain a PLUS Loan.

Graduate students may qualify for up to $20,500 in Federal Direct Unsubsidized Loans per academic year. The lifetime borrowing limit for graduate students is $138,500 which includes all Federal Direct Subsidized and Unsubsidized Loan borrowing at the undergraduate and graduate level.

First time Federal Direct Student Loan borrowers must complete Entrance Counseling and sign a Master Promissory Note (MPN). Borrowers needing to complete Entrance Counseling and/or a Master Promissory Note will be contacted to do so via email. Both items can be completed at Studentaid.gov and instructions are included below:

Entrance Counseling ensures that borrowers understand the responsibilities and obligations associated with borrowing a Federal Direct Student Loan. The Master Promissory Note is a legal document in which the borrower promises to repay the loans borrowed and any accrued interest and fees to the U.S. Department of Education. A Master Promissory note is valid for up to 10 years and may be used for more than one loan. The MPN will require two references from different households. A parent/guardian should be the first reference used for dependent students. Please contact the Student Loans Office at (309) 677-3155 or by e-mail at [email protected] with any questions or if you prefer to complete a paper copy of the MPN.

Exit Counseling is required of Federal Direct Student Loan borrowers who: drop below half-time, cease attendance, or graduate. Exit Counseling must be completed even if you are transferring to another school or going on to graduate school.

Exit Counseling can be completed at Studentaid.gov using your FSA ID (same FSA ID used to sign the FAFSA). Please include Bradley University as one of the schools to receive notification of completed Exit Counseling. During Exit Counseling you will update your contact information, review current information about your loans, and determine your repayment strategy. Any questions regarding Exit Counseling should be directed to the Student Loan Office at (309) 677-3155.

Federal Direct Student Loans are assigned to a loan servicer once they are disbursed. A loan servicer is a company assigned to handle the billing and other services associated with managing loans on behalf of the U.S. Department of Education at no cost to the borrower. At any time, a Direct Loan may be transferred from one loan servicer to another. To identify your loan servicer, visit your account dashboard via Studentaid.gov and scroll down to the “My Loan Servicers” section. Questions regarding repayment, repayment plans, deferment, forbearance, etc. should be directed to the appropriate loan servicer. A list of loan servicers and their contact information has been provided below.

Loan Servicer	Contact
Edfinancial	1-855-337-6884
MOHELA	1-888-866-4352
Aidvantage	1-800-722-1300
Nelnet	1-888-486-4722
ECSI	1-866-313-3797
Default Resolution Group	1-800-621-3115 (TTY: 1-877-825-9923 for the deaf or hard of hearing)
CRI	1-833-355-4311

PLUS Loans

The PLUS is a federal borrowing opportunity for parents of undergraduates (enrolled in at least 6 credit hours). The interest charged on parent PLUS loans borrowed between July 1, 2024 and June 30, 2025 is 9.08%, and there is a 4.228% origination fee. Repayment is typically figured for a period of 120 months beginning when the loan is fully disbursed. Parent PLUS loans are eligible for deferment of repayment until the student graduates or leaves school. To request a deferment, call 800-848-0979. PLUS borrowers choosing to begin immediate repayment will start paying approximately 30 days after the loan is fully disbursed.

The PLUS loan application process is done online at Studentaid.gov. You will first need to log into the site using your FSA ID. If you do not have an FSA ID, you can request one at this site. The application will give you one of three choices concerning the amount you want to borrow:

Enter a specific dollar amount
Select “Maximum Amount” (Bradley will determine that number)
Select “Don’t know” (Bradley will certify the loan for maximum amount of eligibility)

If you intend to borrow for a period less than a full academic year, please contact our office prior to applying. Also, if you are a first-time borrower, following approval you will need to complete a Master Promissory Note. You should do this before leaving the loan application website. Finally, the student for whom you are borrowing must have completed a FAFSA covering the academic year coincident with your PLUS loan period.

The Graduate PLUS is a federal borrowing opportunity for students who have a baccalaureate degree and meet the enrollment requirements for a direct student loan in a degree-seeking graduate or professional program. The interest charged on Graduate PLUS loans borrowed between July 1, 2024 and June 30, 2025 is 9.08%, and there is a 4.228% origination fee. Repayment is typically figured for a period of 120 months and begins when you are no longer enrolled at least half-time.

The Graduate PLUS loan application process is done online at Studentaid.gov. You will first need to log into the site using your FSA ID. If you do not have an FSA ID, you can request one at this site. If you are a first-time Grad PLUS borrower, you will be required to complete federally-mandated entrance counseling and sign a master promissory note. You should complete these documents before leaving the loan application website.

Nursing Loan

Nursing Student Loans are federal loans which are awarded to nursing majors based on financial need as determined by FAFSA results. The interest rate is 5%. Repayment and interest accrual begins nine months after the student ceases to be enrolled at least half-time.

Students who have been awarded a Nursing Student Loan will be sent an e-mail with instructions on how to complete the annual loan acceptance process.

If a paper copy of the Master Promissory note is preferred, please contact the Student Loan department at (309) 677-3155 or by email at [email protected] and a paper copy will be provided to the student.

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Additional Links

Private Loans

Private student loans should be considered “last resort” opportunities. You should utilize all other financing options before applying for a private product. Remember, federal student loan programs are less expensive than private loans and should be considered first. Private loan interest typically begins accruing immediately and fluctuates with market rates. Undergraduate private loan borrowers will be required to have a cosigner.

The lender, not Bradley, determines eligibility for a private loan. However, the university is required to certify your enrollment and calculate the amount you can borrow. Total loan amount is limited to the cost of attendance minus financial assistance. Proceeds from these loans are disbursed through Bradley.

The university does not endorse or recommend any specific private loan products.

Some questions you should ask:

How soon will I enter repayment? Are interest-only payments required during enrollment?
How often is the interest capitalized? (Capitalization is when accrued interest is added to the principal balance. The frequency of capitalization will increase the total loan amount that you have to repay because you will be charged interest on a higher principal loan).
Is a co-signer required? If not, if I use a co-signer can I receive a better rate?
Will the interest rate and fees change in repayment? Does the lender offer a fixed-rate product?
What will my monthly payment be when I am in repayment?
What kind of other benefits does the lender offer? (interest rate reductions with automatic withdrawals, principal reduction with a certain number of on-time payments, co-signer release, primary borrower death or disability cancellation).

Bradley takes no position on any particular lenders or the quality of their products.

Here are providers most frequently used by our students over the last two academic years.

If you wish to use another lender that is not on the list, you have the right to do so.

Federal Loans

Direct Student Loans

PLUS Loans

Nursing Loan

Private Loans

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