Borrowing to Pay for College
A college education is an investment. As students and parents explore academic options, many also look to borrowing as a way to finance college costs over more than four years. Borrowing is a common practice, and ensures you will have the tools necessary to earn a degree. Many loan options are available. Elon participates in the Federal Direct Loan program. All loans will be processed with the Department of Education as your lender. Please view individual program links below for further information.
Need-based Loans
Students must file the FAFSA to be considered for this loan.
Federal Direct Student Loan (subsidized)
Moderate interest loans awarded directly to students. Freshmen may borrow up to $3,500 annually, sophomores up to $4,500 annually, and juniors and seniors up to $5,500 annually. These loans are federally guaranteed and no interest accrues, nor is any payment due, until six months after the student ceases to be at least a half-time student. The interest rate is a fixed percentage for undergraduate subsidized loans.
Loans not Based on Need
A completed FAFSA is required for Unsubsidized Direct Loan, PLUS Loan, and Graduate PLUS Loans.
Federal Direct Student Loan (unsubsidized)
Available to all students regardless of need. Loan amounts are the same as for the need-based subsidized program. However, under this program borrowers do not qualify for federal interest subsidy payments. Thus interest accrues while the student is in school. Repayment of principal begins six months after the student is no longer enrolled half-time. The interest rate is a fixed percentage for undergraduate, graduate and professional students.
Federal Parent Loan for Undergraduate Students (PLUS)
2025-2026
Federal Parent Loan for Undergraduate Students (PLUS) Parents may borrow up to the cost of education, less any other aid, per academic year for each dependent enrolled at least half-time. Interest rate is a fixed 8.94 percent. Payment of PLUS loans may be deferred while the student is enrolled in school. Please check with the Department of Education regarding this option. If deferment is not requested payment will begin 60 days after the final loan disbursement for the academic year in which the loan was made.
Effective July 1, 2026
Parents may borrow a Federal Parent PLUS Loan to help cover their dependent undergraduate student’s educational expenses. Under the One Big Beautiful Bill Act (OBBBA), new Parent PLUS Loans originated on or after July 1, 2026, are subject to federal borrowing limits.
Annual borrowing limit: $20,000 per dependent student
Lifetime borrowing limit: $65,000 per dependent student
Students must be enrolled at least half-time.
The interest rate is fixed.
Repayment of Parent PLUS Loans may be deferred while the student is enrolled at least half-time. Parents should confirm deferment options directly with the U.S. Department of Education. If deferment is not requested, repayment will begin 60 days after the final loan disbursement for the academic year in which the loan was made.
Legacy Provision: Parents who received a Parent PLUS Loan disbursed prior to July 1, 2026, may continue borrowing under the previous rules (up to the cost of attendance, less other aid) for up to three additional academic years or until the student completes the program (based on published program length), whichever occurs first.
Graduate PLUS Loan
2025-2026
For graduate students who need financial assistance beyond the $20,500 Federal Direct Unsubsidized Loan maximum, there is the federal Graduate PLUS Loan program. The Graduate PLUS Loan allows for the deferment of repayment while the student is enrolled in school. The Graduate PLUS Loan carries a fixed interest rate of 8.94 percent. The maximum amount a student may borrow from the Graduate PLUS Loan program is Elon’s cost of attendance less any Federal Direct Student Loans and other forms of financial aid a student may be receiving.
Changes Effective July 1, 2026
Under the One Big Beautiful Bill Act (OBBBA), the Federal Graduate PLUS Loan program is discontinued for new borrowers beginning July 1, 2026. As a result, Graduate PLUS Loans will no longer be available for new borrowing for the 2026–27 academic year and beyond.
Graduate students seeking federal loan funding will instead rely on the Federal Direct Unsubsidized Loan, which carries an annual borrowing limit of $20,500 and an aggregate limit of $100,000 for most graduate programs (higher limits apply to certain professional programs, as defined by federal regulation).
Legacy Provision: Graduate students who received a Graduate PLUS Loan disbursed prior to July 1, 2026, may continue borrowing under existing Graduate PLUS rules for up to three additional academic years or until program completion (based on published program length), whichever occurs first.
Private Alternative Loan Programs
Elon University also participates in a number of private and state‑funded educational loan programs. These loans may be used to supplement federal and institutional aid and may offer a variety of repayment terms. Loan eligibility, interest rates, fees, repayment options, and borrower benefits vary by lender and are determined by the lender. Approval is typically based on creditworthiness, and a credit‑worthy co‑signer may be required. Elon does not recommend or endorse any specific lender, and students and families are encouraged to carefully evaluate all loan options and review the terms and conditions before borrowing.