Syracuse University: Student Loans, Allowed Or Not?

Syracuse University offers a range of financial aid options for students, including federal and private loans. The university's tuition fees are $65,528, which is higher than the national average of $47,999. The total cost of attendance, including room, board, textbooks, and personal expenses, is $85,282.

Federal loan options include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Parent PLUS Loans, and Direct Graduate PLUS Loans. These loans are available to undergraduate and graduate students, with interest rates ranging from 5.50% to 9.083%. Syracuse University also offers various grants and scholarships, which do not need to be repaid.

Private loan options are also available for students, offered by banks, credit unions, and states. These loans are not federally sponsored and typically have varying fees and limited forgiveness opportunities.

The university's financial aid office provides resources and advice to help students make informed decisions about their loan options and understand their obligations and repayment options.

Federal Direct Loans

Syracuse University does allow students to take out loans, and the majority of students at the university (58%) take out federal loans.

There are two types of Federal Direct Loans:

• Federal Direct Subsidized Loan: Need-based loan for undergraduate students to help pay for the cost of their education after high school. The lender is the US Department of Education, and eligibility is determined by the information submitted on the FAFSA and according to US Department of Education regulations. No interest is charged while the student is enrolled at least half-time. Repayment begins six months after the student ceases to be enrolled at least half-time. The lifetime loan maximum for undergraduate students is $23,000.
• Federal Direct Unsubsidized Loan: This loan is not based on need and is available to students to help pay for the cost of their education after high school. The lender is the US Department of Education, and eligibility is determined by the information submitted on the FAFSA and according to US Department of Education regulations. Interest is charged while the student is enrolled at least half-time, and this can be deferred but will be capitalized (added to the principal amount). The lifetime loan maximum for dependent students is $31,000, and for independent students, it is $57,500.

Federal Direct PLUS Loans

Syracuse University does allow students to take out loans. The university's Office of Financial Aid & Scholarship Programs provides information on the types of loans available to students.

Parents can apply for a Federal Direct PLUS Loan at any time during the academic year. They will need to file a Free Application for Federal Student Aid (FAFSA) and will be subject to a credit check as part of the application process. It is recommended that parents budget their costs for the entire academic year to determine the loan amount needed.

The interest rate for Federal Direct PLUS Loans for the 2024-25 academic year is 9.083%. The rate was 8.05% for the 2023-24 academic year. There is also a small fee charged by the US government, which will reduce the amount of the loan disbursed.

Repayment of the loan begins 60 days after the loan is fully disbursed. Payment deferment privileges may be available upon request. The repayment term is 10 years, and income-based repayment plans are available.

Federal Direct Subsidized Loans

Syracuse University does allow students to take out loans. Federal Direct Subsidized Loans are available to undergraduate students to help pay for the cost of their education after high school. The lender is the U.S. Department of Education, and eligibility is determined by the information submitted on the Free Application for Federal Student Aid (FAFSA) and according to U.S. Department of Education regulations.

The loan amounts vary depending on the student's year in school:

• Freshman (0-29 credits): $3,500
• Sophomores (30-59 credits): $4,500
• Juniors and Seniors (60-90+ credits): $5,500

The lifetime loan maximum for undergraduate students is $23,000. The principal is not due while the student is enrolled at least half-time, and payments begin following a six-month grace period after graduation or if enrollment falls below half-time. The standard repayment term is 10 years, but income-based repayment plans are also available.

Federal Direct Unsubsidized Loans

Eligibility for Unsubsidized Loans is determined by the information submitted on the Free Application for Federal Student Aid (FAFSA) and according to U.S. Department of Education regulations. An unsubsidized Federal Direct Loan is not based on need.

Interest is charged while the student is enrolled at least half-time. The student may choose to defer the interest, but if this option is selected, the interest will be capitalized (added to the principal amount).

The U.S. Government charges a small fee, which will reduce the amount of the loan disbursed to the student's account.

The loan with the first disbursement has an interest rate of Undergraduate Fixed: 6.533% (7/1/24 – 6/30/25) 5.50% (7/1/23 – 6/30/24) Graduate Fixed: 8.083% (7/1/24 – 6/30/25) 7.05% (7/1/23 – 6/30/24) 1.057% (10/1/20 – 9/30/25).

To be eligible, students must be enrolled at least half-time (six or more credits per semester). The annual loan maximum for dependent students is:

• Freshman (0-29 credits): $5,500 (of which, no more than $3,500 can be subsidized)
• Sophomores (30-59 credits): $6,500 (of which, no more than $4,500 can be subsidized)
• Juniors and Seniors (60-90+ credits): $7,500 (of which, no more than $5,500 can be subsidized)

For independent students, the annual loan maximum is:

• Freshman (0-29 credits): $9,500 (of which, no more than $3,500 can be subsidized)
• Sophomores (30-59 credits): $10,500 (of which, no more than $4,500 can be subsidized)
• Juniors and Seniors (60-90+ credits): $12,500 (of which, no more than $5,500 can be subsidized)

The lifetime loan maximum for dependent students is $31,000, and for independent students, it is $57,500 (of which no more than $23,000 can be subsidized). Graduate Students have a lifetime loan maximum of $138,500 (of which no more than $65,500 can be subsidized loans). This total includes undergraduate borrowing.

The principal is not due while the student is enrolled at least half-time or during the six-month grace period. Interest is due while in school, but can be deferred. If the interest is deferred, it will be capitalized (added to the principal).

Repayment begins 10 years after disbursement (income-based repayment plans are available). The loan is eligible for Federal Loan Deferments, Forbearances, or Loan Forgiveness, as well as Federal Consolidation. Interest payments are eligible for Federal Tax Deduction.

Federal Direct Graduate PLUS Loans

Syracuse University does allow students to take out loans. The university's Office of Financial Aid and Scholarship Programs offers a step-by-step guide on how to apply for federal financial aid, including Federal Direct Graduate PLUS Loans.

The Federal Direct Graduate PLUS Loan is a long-term, fixed-rate loan borrowed by graduate students to bridge the financial gap between their educational cost of attendance and their other financial aid.

Students must borrow their maximum eligibility in Federal Direct Loans before they may apply for this loan program. Eligibility is calculated by the Cost of Attendance minus other financial aid.

The loan comes with an interest rate that adjusts annually on July 1st and is fixed for the life of the loan. For loans disbursed between July 1, 2023, and June 30, 2024, the rate is 8.05%.

The loan also has an origination fee of 4.228% for loans disbursed on or after October 1, 2020, and before September 30, 2024.

To be eligible for the loan, you must be a US Citizen or Permanent Resident, file the FAFSA, be enrolled at least half-time, and be awarded a Direct Unsubsidized Loan. Credit requirements are based on federal standards, and borrowers must have no adverse credit.

Repayment begins when the loan is fully disbursed, however, students enrolled at least half-time qualify for In-School Deferment. While enrolled, borrowers may elect to make interest-only or full payments.

To apply for a Federal Direct Graduate PLUS Loan, you must determine the amount of the loan you wish to borrow using a Loan Worksheet. Then, go online to studentaid.gov and click on "Login to Start". Follow steps 1–4 to complete the online credit check, and be sure to enter Syracuse's school code: 002882, so that SU receives your PLUS Loan information.

Upon completing step 4, a credit decision will be displayed. You will then need to complete the Federal Direct Graduate PLUS Loan master promissory note and the Annual Student Loan Acknowledgement. Syracuse University will then transmit the final loan approval and disbursement request to the Department of Education.

Frequently asked questions