Loans

Financial aid loans are available to NAU students

After submitting the FAFSA, you may be offered loans as part of your financial aid package as long as you are enrolled at least half-time for each term (undergraduate students: 6 credit hours and graduate students: 5 credit hours).  A loan is money you borrow and must pay back with interest.

If you decide to take out a loan or loans, make sure you understand who is offering the loan and the terms and conditions of the loan. Student loans can come from the federal government and must be enrolled at least half-time each term to be eligible. Student loans also may come from private sources such as a bank or financial institution. Loans offered by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources.

Types of loans

• Direct Subsidized Loans
  • Loans offered to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
  • Must be enrolled at least half-time for each term (undergraduate students – 6 credit hours per term).
• Direct Unsubsidized Loans
  • Loans offered to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.
  • Must be enrolled at least half-time for each term (undergraduate students: 6 credit hours and graduate students: 5 credit hours).
• Federal PLUS Loans
  • Loans offered to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.
  • Must be enrolled at least half-time for each term (undergraduate students: 6 credit hours and graduate students: 5 credit hours).
• Federal Perkins Loans
  • A program for undergraduates and graduate students with financial need. Under federal law prohibited schools to make new Perkins Loans after Sept. 30, 2017, and final disbursements were permitted through June 30, 2018. As a result, students can no longer receive Perkins Loans.
• Private Alternative Loans
  •  Loans offered by banks and education lenders to fund education expenses to help fill the gap between the financial assistance students are offered and the total cost of attending school. Private loans are not funded by the federal government.
• Federal Nursing Loans
  • Loans available to eligible students in the Northern Arizona University Nursing Program.