2026/2027 Student and Parent Loan information coming soon
If you apply for financial aid, you may be offered loans as part of your financial aid offer. A loan is money you borrow and must pay back with interest. If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Students are offered loans based on their grade level/degree and must adhere to all federal limits per the Department of Education.
Depending on your degree you may be offered different types of loans:
- Subsidized Loan
- Unsubsidized Loan
- Parent PLUS Loan
- Graduate PLUS Loan
Direct Subsidized Loan are available to undergraduate students with financial need. USD determines the amount you can borrow based on your cost of attendance and other financial aid you receive. The Department of Education pays the interest on a Direct Subsidized Loan while you're in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).
View Federal Direct Subsidized/Unsubsidized Student Loan instructions
How to Apply
If you're interested in using federal loans to fund your educational expenses, you will first need to complete a FAFSA for that current academic year. Once the FAFSA is processed, you will receive a financial aid award offer that may contain types of federal loans. Each loan will have a series of requirements such as Master Promissory Note (MPN) and/or Entrance Loan Counseling. Requirements vary depending on the loan that you're applying for.
To find out what loan requirements you have for each loan, you can review the red flags on your MySanDiego portal under the Financial Aid Requirements section, or obtain a copy of the instructions for your specific loan requirements.Disbursement
After you have accepted a loan via the portal and completed all loan requirements associated with that loan, the funds will disburse directly to the USD student account about 10 days prior to the start of the semester OR within about 5-7 business days (if you completed requirements after the start of the semester).
Interest Rates
If you receive a federal student loan, you'll be required to repay that loan with interest. It is important that you understand how interest is calculated and the fees associated with your loan. Both of these factors will impact the amount you will be required to repay. You can view additional information about interest on the StudentAid.gov website.
- 2025-26 Academic Year
- 2024-25 Academic Year
| Subsidized and Unsubsidized Loan | 6.39% for Undergraduate Borrowers 7.94% for Graduate Borrowers |
|---|---|
| Parent PLUS Loan | 8.94% |
| Graduate PLUS Loan | 8.94% |
Repayment
If you have taken out federal loans during your time at USD, repayment is done through your loan servicer. Don't forget to do your exit loan counseling after you graduate or are no longer attending a university for 6 months or more.