Federal Student Loans
Program Information
Direct Unsubsidized Loan
Direct Unsubsidized Loan
- Lending Limit:
- up to $20,500 per academic year for graduate students
- up to $50,000 for professional students (MDIV only)
- Schedule of Reductions: Students will have loans loans reduced when enrolled less than full time over an academic year. This reduction in the annual loan limit will be made in direct proportion to the degree to which the student is not enrolled full-time, rounded to the nearest percentage point.
- Interest Rates change each academic year*
- Loan accrues interest while a student is in school
- Origination Fee adjusts for each calendar year
- Grace Period: 6 months
This means that once a student has stopped attending at least 6 credit hours, they have 6 months before they are required to begin repaying their loans
Graduate PLUS Loan
Graduate PLUS Loan
- Beginning July 1, 2026, the Graduate PLUS Loan program will be discontinued.
- Legacy Provision: If a borrower has a Graduate PLUS loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow from the program for 3 academic years or the remainder a normal full-time student’s expected time to credential, whichever is less.
- Students must credit-qualify for the PLUS Loan
- Lending Limit: Awarded up to a student’s estimated cost of attendance minus other forms of aid a student has been awarded
- Schedule of Reductions: Students will have loans loans reduced when enrolled less than full time over an academic year. This reduction in the annual loan limit will be made in direct proportion to the degree to which the student is not enrolled full-time, rounded to the nearest percentage point.
- Interest Rates change each academic year*
- Loan accrues interest while a student is in school
- Origination Fee adjusts for each calendar year
*Interest rates and origination fees change yearly based on auction of Treasury bill in spring.
Review federal student loan borrowing history
Students can review information regarding their federal grants and federal student loans, including borrowing history, through the Federal Student Aid Website.
- You will need your Federal Student Aid ID (FSA-ID) to enter the site
- You must create an FSA ID, if you haven’t already done so, in order to access Department of Education websites, such as FAFSA
Direct Loan Consolidation
Students can consolidate their federal student loans into one loan.
Loan Repayment
Repayment Plan/New Borrowers – Effective July 1, 2026
- Borrowers with new loans made on or after July 1, 2026, can be repaid using only two plans: a new standard repayment plan and the new income-based repayment plan, RAP. If a borrower with new loans made on or after July 1, 2026, does not select a plan, they will be assigned to the new standard repayment plan.
- All loans must be paid under the same repayment plan, so borrowers with loans made before July 1, 2026, who take out additional loans on or after July 1, 2026, will only have RAP and the new standard repayment plan as options.
Repayment Plan/Current Borrowers – Effective July 1, 2026 & July 1, 2028
- Current borrowers with no new loans made on or after July 1, 2026, are eligible to enroll in the current Standard, Graduated, Extended, or current Income Based (IBR) repayment plans, and may also opt in to the new RAP.
- Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a different repayment plan (current IBR, current standard plans, or RAP) by July 1, 2028. If no selection is made by that date, they will be moved into RAP automatically.
Repayment Assistance Plan (RAP) – Effective July 1, 2026
- Tiered repayment formula that increases the percentage of income that must be dedicated to a borrower’s monthly student loan payments as their earnings rise.
- $10 minimum payment. The monthly payment is 1-10% of income based on AGI. If married filing separately, the spouse’s AGI and number of dependents are not included in the payment calculation. $50 off monthly payment (base payment) per dependent. No cap on monthly payment, even if it’s higher than the standard repayment plan would be.
- Qualifying plan for loan forgiveness
- 30-year repayment period
- Eliminates negative amortization
- If a borrower makes an on-time payment that reduces their principal by less than $50, ED will cover the difference, up to the amount paid.
- Borrowers currently on the SAVE plan have until July 1, 2028, to switch or be automatically enrolled in RAP.
IBR Plan (Current) – Effective July 1st, 2026
- Removes the requirement for borrowers to demonstrate a partial financial hardship. Retains cancellation for balances of loans repaid under IBR at 25 years.
Standard Repayment Plan – Effective July 1, 2026
- Creation of a new standard plan with 4 fixed terms of 10, 15, 20, or 25 years based on the amount borrowed (or outstanding balance if in repayment)
- Fixed monthly payments
For more information, please visit studentaid.gov.
Public Service Loan Forgiveness
Individuals employed full-time with a public service organization may be eligible for loan forgiveness.
Private Student Loans
Naropa University awards educational loans primarily from the Direct federal student loan program. Some lenders advertise private loans that “mimic” the federal student loan program, but which differ in important ways. Private student loans:
- Cannot be included in a federal consolidation loan
- Are not eligible for income-driven repayment plans
- Are not eligible for Public Service Loan Forgiveness
- Result in an additional monthly student loan payment for the borrower
Aid from all sources cannot exceed a student’s estimated cost of attendance. Please email finaid@naropa.edu with the words “Private Loan” in the subject line if you would like to start the process of requesting the inclusion of a private loan in your financial aid package.
Naropa University does not endorse or promote any private loan program or lender. Borrowers are encouraged to review federal student loan options before considering private loans since federal loans will generally have more favorable terms and conditions.
