Federal Student Loans

Youngstown State University awards student loans after eligibility for grants, scholarships, and Federal Work-Study (FWS) is considered.  Student loans must be repaid and a Free Application for Federal Student Aid (FAFSA) is required for all Federal loan programs.

Youngstown State University participates in the Federal Direct Stafford Loan Program.  Stafford loan disbursements will be funded directly through the Department of Education; there is no involvement from third party lenders or guarantors.

View our debt management page to research ways to limit your debt, manage your student loans and plan for repayment.  Default aversion and financial literacy programs are also provided.

Recent Federal Loan Changes

Interest Rates: Undergraduates will borrow at a rate of 3.76% for 2016-2017 (effective July 1 on both subsidized and unsubsidized Stafford loans), graduate students at 5.31% (unsubsidized Stafford loans only), and Parent and Grad PLUS loan borrowers at 6.31%.

One Term Loan Disbursements: Youngstown State University is subject to federal regulations that require two loan disbursements, per loan period, on all student Stafford loans.  Generally, a student's loan period spans the fall and spring semesters.  A student with a Fall/Spring loan period would receive one-half of their loan proceeds no earlier than ten days prior to the start of the fall semester, and the remaining one-half no earlier than ten days prior to the start of the spring semester. If a student's loan period consists of a single semester, however, the loan must be divided into two equal disbursements, split and paid evenly over the single semester.  A student with a one term loan period would receive one-half of the loan proceeds no earlier than ten days prior to the start of the semester, and the remaining loan proceeds at the mid-point of the semester.

First-Time Freshman 30-Day Delay: All first-time freshman student loan borrowers are subject to a mandatory 30-day delay in receiving their first student loan disbursement.  First-time freshman borrowers will receive their first loan disbursement 30 days from the first day of the semester.

Maximum 50% loan eligibility for one term (Change Effective Summer Semester 2015): Beginning with the 2015-2016 aid year, students will be limited to 50% of their yearly loan eligibility in any single term.  If for example, a student's yearly eligibility is $10,500, the maximum amount that the student could borrow in a single term would be $5,250, or 50% of the loan.  Loans will be awarded and split evenly over the fall and spring semesters.  A student may move money to the summer, but the maximum eligibility for any single term in the aid year will be set at 50% of the yearly eligibility.

Federal Direct Stafford Loan Information

Subsidized Stafford Loan - A subsidized loan is awarded based on financial need.  Student borrowers are not required to pay the interest that accrues while enrolled in school.  The federal government pays the interest for subsidized loans for students that are enrolled at least half-time.  Effective July 1, 2013, subsidized loans were limited to 150% of the length of a student's academic program.  New student borrowers will be limited to receiving subsidized loans for 3 years in a 2-year program or 6 years in a 4-year program.  Graduate students are not eligible for Subsidized Stafford Loans.

Unsubsidized Stafford Loan - An unsubsidized loan is not awarded based on financial need.  Student borrowers are charged interest while in school.  The borrower may choose to have the interest payment deferred while in school.  If the borrower selects to defer interest payments while in school, at repayment, the amount owed will be increased by the interest that has accrued.  If the borrower chooses to pay the interest while in school, the borrower will need to contact their servicer to set up payment arrangements.

Half-time enrollment is a requirement to secure Stafford funding.  Repayment of Federal Direct Stafford loans begins six months after graduation, or when enrollment drops below half-time. 

Loan LimitsDependent
Undergraduates
Independent
Undergraduates
Graduate Students
1st year
(Freshman)
$5,500 max
$3,500 of this amount may be subsidized loans
$9,500 max
$3,500 of this amount may be subsidized loans
$20,500 Max
*$0 of this amount may be in subsidized loans

*as of July 1, 2012
2nd year
(Sophomore)
$6,500 max
$4,500 of this amount may be subsidized loans
$10,500 max
$4,500 of this amount may be subsidized loans
3rd & 4th year
(Junior and Senior)
$7,500 max
$5,500 of this amount may be subsidized loans
$12,500 max
$5,500 of this amount may be subsidized loans
Aggregate Loan Limits for life of student's education$31,000 max
$23,000 of this amount may be in subsidized loans
$57,500 max
$23,000 of this amount may be in subsidized loans
$138,500 max
$65,500 of this amount may be in subsidized loans.

The graduate debt limit includes Stafford Loans received for undergraduate study.

First-time Stafford loan borrowers at YSU must sign a Direct Stafford Loan Master Promissory Note and complete Federal Entrance Loan Counseling. Both of these requirements can be completed at studentloans.gov. Studentloans.gov is also the site that students will complete Exit Loan Counseling upon graduation, leaving school or dropping below half-time enrollment.

Eligible students must maintain Satisfactory Academic Progress (SAP) and cannot be in default on any Title IV aid.  Click for more information on Federal Stafford Loans from the Department of Education.

YSU Student Loan Code of Conduct

Federal Perkins Loan Information

A Federal Perkins Loan is a low-interest (5%) educational loan available to undergraduate and graduate students with financial need.  Federal Perkins Loan eligibility is based on financial need and is determined by the results of the Free Application for Federal Student Aid (FAFSA).  Students must attend school at least half-time to be eligible for the Perkins Loan. Repayment and interest charges are deferred for nine months after the student graduates or drops below half-time enrollment. Complete the FAFSA by February 15, as funds are limited.

Perkins Loan Repayment - Perkins Loan Online Payments and Exit Counseling

Federal Parent PLUS Loan

Federal PLUS loans enable parents of dependent students with good credit histories to borrow funds to help pay for their child's college education.  This federally funded loan has a fixed interest rate, currently set at 6.31% (2016-2017).  Repayment of the Federal PLUS Loan generally begins sixty days after the final loan disbursement for each academic year.  A PLUS denial is a denied credit check; students whose parent's credit check is denied are eligible for an additional Unsubsidized Stafford Loan.  Click for more information on a Federal PLUS Loan from the Department of Education.

The Department of Education's PLUS Application site combines the YSU PLUS Loan Request and Direct Parent PLUS Master Promissory Note under one process.  To electronically sign the Direct PLUS Master Promissory Note (MPN), the parent must have an FSA ID.  If the parent does not have an FSA ID click here to request an FSAID.

Apply through the Department of Education's Federal Direct Parent PLUS site to apply now. The parent is the borrower and must provide their information during the log-in process.

Federal Grad PLUS Loan Information

Grad PLUS Loans are federal loans that graduate and professional students with good credit history may borrow to help pay educational expenses.  This federally funded loan has a fixed interest rate, currently set at 6.31%.  Half-time enrollment is a requirement.  Click for more information on Federal Grad PLUS loan from the Department of Education.

Grad PLUS Application at studentloans.gov