Loans for Undergraduates

Federal Direct Loans are made directly from the U.S. federal government to students. There are two types:

Subsidized Loans: Based on demonstrated financial need. The federal government pays the interest while the student is enrolled full-time and during authorized deferment periods.

Unsubsidized Loans: Available to students without full eligibility for a subsidized loan. The student is responsible for all interest, including interest that accrues while in school. Once repayment begins, unpaid interest is capitalized into the principal.

Annual Borrowing Limits (Subsidized + Unsubsidized combined):

• First Year: $5,500 (up to $3,500 subsidized)
• Second Year: $6,500 (up to $4,500 subsidized)
• Third & Fourth Year: $7,500 (up to $5,500 subsidized)

Interest Rates (fixed): 6.52% for loans disbursed July 1, 2026–June 30, 2027 |Fees: 1.057% of the loan amount for loans disbursed between October 1, 2020, and September 30, 2027, deducted from loan proceeds at disbursement.

First-time Federal Direct Loan borrowers must complete Entrance Counseling and provide a Master Promissory Note (MPN) at studentaid.gov before funds are disbursed.

Parents of dependent undergraduate students may borrow through the federal PLUS Loan program. Starting July 1, 2026, federally guaranteed Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student. Existing Parent PLUS borrowers who have borrowed for their students prior to July 1, 2026, can continue borrowing up to the Cost of Attendance (COA) for 3 more years or until the student’s program ends. Eligibility is based on the borrower’s creditworthiness; if denied due to credit concerns, the student may become eligible for additional Unsubsidized Direct Loan funds.

Interest Rate: 9.07% fixed for loans disbursed between July 1, 2026 and June 30, 2027.

Fees: 4.228% of the loan amount for loans disbursed between October 1, 2020 and September 30, 2027.

Repayment: Extended over ten years (120 payments). Parents may begin repayment once the loan is fully disbursed or defer payments while the student is enrolled at least half-time.

The Massachusetts No-Interest Loan program is funded by the Commonwealth of Massachusetts and administered by Emerson College. Students must demonstrate high financial need and Massachusetts residency to be considered. This loan consists of principal only—no interest accrues. Repayment begins six months after the student is no longer enrolled at least half-time. Students must sign a promissory note with the Office of Financial Aid. Program funding varies annually.

Emerson does not refer or recommend specific alternative loan lenders. We recommend exhausting all federal Direct Loan eligibility before exploring private or alternative options. You have the right to choose any lender, and Emerson will certify private education loans through any lender regardless of whether they appear on comparison tools.

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You may also contact your current bank or your home state’s educational financing agency to explore loan programs available to you. All private education loans require the student to complete a self-certification form directly with the lender before or after Emerson certifies the loan.

Emerson College believes its role as a resource doesn’t end with graduation. We are here to provide information and assistance aimed at helping you transition from student to responsible loan borrower.

Repaying educational loans can be a significant challenge. How you handle your repayment responsibilities can greatly impact your credit rating. Becoming delinquent on student loans can make it very difficult for you to make major purchases, such as a car or a home. On the other hand, responsible repayment habits can help you to build an excellent credit history. For these reasons, we urge you to take your repayment responsibilities seriously.

If you need assistance, we are here for you either by phone at 617-824-8655 or via email at studentloans@emerson.edu.

Determining Your Loan Repayment Amount

1. Determine how much federal student loan debt you have and the contact information for who you need to repay by visiting studentaid.gov.
   1. NOTE: This database does not keep track of any alternative loans you borrow (e.g., Sallie Mae loans, MEFA loans, etc.). If you borrowed alternative loans, you must contact your lender directly.
2. Estimate your total monthly repayment amount for all of your student loans. You should contact your lender/s for this information. You can also use repayment calculators such as the ones found on the Mapping Your Future website. If you would like to also calculate your monthly repayment amount to include your alternative loans, you can use the repayment calculator available on finaid.org.