What Loans Are and Borrower Responsibility
Loans are a form of financial aid that must be repaid, with interest. Rider University participates in the William D. Ford Federal Direct Loan Program. Federal Direct Loans may be available to eligible undergraduate students, graduate students, and parents of dependent undergraduate students.
Students and families should review all loan terms carefully before borrowing. Borrowers are responsible for repaying federal and private education loans even if the student does not complete the program, does not obtain employment after leaving school, or is dissatisfied with the education received.
Borrowers should borrow only what is needed to help pay educational expenses. Loan amounts, interest rates, fees, repayment terms, and borrower responsibilities vary by loan type.
Federal Student Loan Rights and Responsibilities
Federal student loans must be repaid with interest. Students and parent borrowers should review federal loan information published by the U.S. Department of Education at StudentAid.gov before borrowing. StudentAid.gov provides information about borrower rights and responsibilities, repayment plans, loan servicers, deferment, forbearance, loan consolidation, forgiveness, cancellation, discharge, delinquency, default, and borrower tools such as the Loan Simulator.
Borrowers are responsible for understanding the terms and conditions of any loan they borrow and must repay federal student loans even if the student does not complete the program, does not obtain employment after leaving school, or is dissatisfied with the education received.
Apply for Financial Aid
Students apply for federal student loans by completing the Free Application for Federal Student Aid, FAFSA, for the applicable academic year.
After the FAFSA is processed, Rider University reviews the student’s financial aid eligibility. If the student is eligible for a Federal Direct Loan, the loan will be included in the student’s financial aid offer.
Students may review their financial aid offer through the myRider portal. Students may accept, reduce, or decline offered loans.
Some loan programs require additional applications or documents before funds can be disbursed. These may include:
- Direct Loan Entrance Counseling
- Master Promissory Note, MPN
- Parent PLUS Loan application
- Graduate PLUS Loan application
- PLUS Master Promissory Note
- PLUS Credit Counseling, if required by the U.S. Department of Education
- Private loan application through the selected lender, if the borrower chooses to pursue a private education loan
Students and borrowers should complete all required documents as early as possible to avoid disbursement delays.
How Loan Eligibility Is Determined
Federal Direct Loan eligibility is determined using information from the FAFSA, the student’s enrollment, grade level, dependency status, cost of attendance, program of study, other financial assistance, federal annual and aggregate loan limits, and continued eligibility requirements.
To receive a Federal Direct Loan, students generally must:
- Complete the FAFSA for the applicable aid year
- Meet general federal student aid eligibility requirements
- Be admitted to and enrolled in an eligible degree or certificate program
- Be enrolled at least half-time in eligible coursework
- Meet Rider University’s Satisfactory Academic Progress requirements
- Not be in default on a federal student loan or owe an unresolved federal student aid overpayment
- Meet federal annual, aggregate, and lifetime loan limit requirements
- Complete all required loan documents before disbursement
Students must remain eligible for federal student aid through the date of disbursement. Loan eligibility may change if enrollment, aid eligibility, program status, or other financial assistance changes.
Federal Direct Subsidized and Unsubsidized Loans
Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans are federal loans borrowed in the student’s name through the William D. Ford Federal Direct Loan Program.
Students apply for these loans by completing the FAFSA. If eligible, the loan will be included in the student’s financial aid offer.
Federal Direct Loans are not automatically credited to the student account. First-time Federal Direct Loan borrowers must complete Direct Loan Entrance Counseling and a Master Promissory Note before loan funds may be disbursed.
Federal Direct Subsidized Loans
Federal Direct Subsidized Loans are available to eligible undergraduate students who demonstrate financial need.
The federal government generally pays the interest on a subsidized loan while the student is enrolled at least half-time, during the grace period, and during eligible deferment periods.
Federal Direct Unsubsidized Loans
Federal Direct Unsubsidized Loans are available to eligible undergraduate and graduate students. Financial need is not required.
Interest begins accruing when the loan is disbursed. Borrowers may choose to pay the interest while enrolled or allow the interest to accrue.
Offer Criteria
Students are offered Federal Direct Loan eligibility based on FAFSA results, enrollment, grade level, dependency status, program of study, cost of attendance, other financial assistance, federal loan limits, and continued eligibility for federal student aid.
Federal Direct Subsidized Loans are available only to eligible undergraduate students with financial need.
Federal Direct Unsubsidized Loans may be available to eligible undergraduate and graduate students. Financial need is not required for the unsubsidized loan.
Criteria for Determining Loan Amounts Offered
The amount a student may borrow is based on the student’s grade level, dependency status, cost of attendance, enrollment, remaining eligibility, other financial aid, and federal annual, aggregate, and lifetime loan limits.
The amount listed in the financial aid offer is the maximum amount the student may borrow for the applicable loan period. Students may borrow less than the offered amount.
Federal Direct Loan amounts may be reduced if the student is enrolled less than full-time, receives additional aid, changes enrollment, approaches a loan limit, withdraws, or no longer meets eligibility requirements.
Maximum Annual Loan Amounts Offered
The chart below shows the maximum annual Federal Direct Subsidized and Unsubsidized Loan amounts by grade level and dependency status. Actual loan eligibility may be less than the maximum shown based on the student’s cost of attendance, enrollment, other financial aid, prior borrowing, aggregate loan limits, and continued eligibility for federal student aid.
| Grade Level | Dependent Undergraduate Students, Total Subsidized and Unsubsidized | Maximum Subsidized Amount | Independent Undergraduate Students | Total Subsidized and Unsubsidized Maximum Subsidized Amount |
|---|---|---|---|---|
| First year | $5,500 | $3,500 | $9,500 | $3,500 |
| Second year | $6,500 | $4,500 | $10,500 | $4,500 |
| Third year and beyond | $7,500 | $5,500 | $12,500 | $5,500 |
Dependent undergraduate students whose parents are unable to obtain a Federal Direct Parent PLUS Loan due to adverse credit may be eligible for the same additional Direct Unsubsidized Loan amounts available to independent undergraduate students. This does not change the student’s dependency status for other financial aid purposes.
A dependent student is not eligible for additional unsubsidized loan amounts solely because a parent reaches the Parent PLUS annual or aggregate loan limit.
Graduate students are not eligible for Federal Direct Subsidized Loans. Eligible graduate students may borrow up to $20,500 per academic year in Federal Direct Unsubsidized Loan funds, subject to federal eligibility requirements, cost of attendance, other financial aid, program limits, and aggregate loan limits.
PLUS Loans
Federal Direct PLUS Loans are optional, credit-based federal loans. PLUS Loans may be available to parents of dependent undergraduate students and subject to federal rules and transition provisions, certain graduate students.
PLUS borrowers must apply at StudentAid.gov and complete a PLUS Master Promissory Note. A credit check is required.
PLUS Loans may be used to help pay remaining educational costs after other financial aid is applied, up to the applicable federal loan limit and the student’s cost of attendance minus other financial assistance.
Parent PLUS Loans
A Federal Direct Parent PLUS Loan is borrowed by the parent of a dependent undergraduate student. The parent borrower is responsible for repaying the loan.
To apply, the parent borrower must complete the Parent PLUS Loan application. If approved, the parent borrower must complete a PLUS Master Promissory Note before funds may be disbursed.
Repayment generally begins after the loan is fully disbursed, unless the parent borrower requests and is approved for a deferment through the loan servicer.
Graduate PLUS Loans
Graduate PLUS Loan eligibility is changing beginning July 1, 2026. New Graduate PLUS Loans are eliminated for new borrowers with first disbursement dates on or after July 1, 2026, unless the borrower qualifies for a federal transition or grandfathering exception.
Graduate students should review the 2026-2027 Federal Loan Changes section and contact One Stop Services with questions about remaining federal loan eligibility.
2026-2027 Federal Loan Changes
Federal student loan rules are changing beginning with loans first disbursed on or after July 1, 2026. These changes may affect loan eligibility and borrowing limits.
Less Than Full-Time Enrollment
Beginning with the 2026-2027 academic year, federal annual loan limits must be reduced for students enrolled less than full-time.
Students must still be enrolled at least half-time to receive Federal Direct Subsidized, Unsubsidized, or PLUS Loan funds.
The reduced loan amount is based on the student’s enrollment level and applicable federal requirements.
Parent PLUS Loan Limits
Beginning with the 2026-2027 academic year, Parent PLUS Loans are subject to new limits.
The annual Parent PLUS Loan limit is $20,000 per dependent student, after other financial assistance is subtracted from the cost of attendance.
The aggregate Parent PLUS Loan limit is $65,000 per dependent student. This limit applies per dependent student, not per parent borrower.
Parent PLUS Loans borrowed for the same dependent student at other schools count toward the $65,000 aggregate limit.
Once the parent borrower, or parent borrowers combined, has reached the $65,000 Parent PLUS aggregate loan limit for a dependent undergraduate student, additional Parent PLUS Loans are not available for that student, even if amounts have been repaid, forgiven, canceled, or discharged.
Graduate Student Loan Limits
Beginning with loans first disbursed on or after July 1, 2026, new federal limits apply to graduate student borrowing unless the borrower qualifies for a federal transition or grandfathering exception.
For new borrowers or borrowers who do not qualify for a transition exception:
| Borrower type | Annual Direct Unsubsidized Loan Limit | Aggregate Direct Subsidized and Unsubsidized Loan Limit | Graduate PLUS Eligibility |
|---|---|---|---|
| Graduate Student | $20,500 | $100,000 | Eliminated |
Special rules may apply to certain health profession programs and borrowers who qualify for federal transition exceptions.
Lifetime Maximum Federal Loan Limit
Beginning with the 2026-2027 academic year, student borrowers are subject to a new lifetime maximum aggregate loan limit of $257,500 for Title IV federal loans borrowed as a student.
This limit includes federal loans received as an undergraduate or graduate student. It includes student-borrowed Federal Direct Loans, Federal Family Education Loan Program loans, Federal Perkins Loans, and Graduate PLUS Loans.
Parent PLUS Loans borrowed by a parent on behalf of a dependent student do not count toward the student borrower’s lifetime maximum aggregate loan limit.
Once a student borrower reaches the $257,500 lifetime maximum aggregate loan limit, the borrower is no longer eligible to receive additional Title IV federal student loans, even if amounts have been repaid, forgiven, canceled, or discharged.
Transition and Grandfathering Exceptions
Some borrowers may qualify for a federal transition or grandfathering exception based on federal criteria. These exceptions may allow certain borrowers to continue borrowing under prior loan rules for a limited period.
Students and borrowers who may be affected by the 2026-2027 federal loan changes should contact One Stop Services before making borrowing or enrollment decisions.
Accepting, Reducing, or Declining Loans
Students are not required to borrow the full loan amount offered. Students may accept the full loan amount, reduce the amount, or decline the loan.
Students may accept, reduce, or decline Federal Direct Subsidized and Unsubsidized Loans through the myRider portal.
Borrowers should review the student account balance, other financial aid, anticipated out-of-pocket costs, and repayment obligations before accepting loans.
Students who later decide they need less loan funding should contact One Stop Services as soon as possible to request a loan reduction or cancellation.
Parent PLUS Loans and Graduate PLUS Loans require a separate application at StudentAid.gov. Approval of a PLUS Loan is based in part on a federal credit check. A PLUS Loan cannot be disbursed until all borrower requirements are complete.
Entrance Counseling and Master Promissory Note
Federal Direct Loan borrowers must complete required loan documents before loan funds can be disbursed.
First-time Federal Direct Subsidized and Unsubsidized Loan borrowers must complete:
Direct Loan Entrance Counseling
Master Promissory Note, MPN
Graduate students borrowing a Graduate PLUS Loan, if eligible, must complete required PLUS Loan documents at StudentAid.gov.
Parent PLUS borrowers must complete a Parent PLUS Loan application and a PLUS Master Promissory Note. Parent PLUS borrowers who are approved with an endorser or through a credit appeal may also be required to complete PLUS Credit Counseling.
Entrance counseling explains important borrower responsibilities, including interest, repayment, deferment, forbearance, delinquency, default, and the consequences of borrowing.
A Master Promissory Note is the borrower’s legal agreement to repay the loan, interest, fees, and any collection costs.
Loans will not be disbursed until all required loan documents are complete and Rider University confirms eligibility.
Loan Interest Rates and Fees
Federal Direct Loans have fixed interest rates. The interest rate is based on the loan type and the first disbursement date of the loan.
A loan fee is also deducted from each loan disbursement before funds are sent to the school. The amount credited to the student account will be less than the amount borrowed.
For loans first disbursed on or after July 1, 2026, and before July 1, 2027, the federal interest rates are:
| Loan Type | Fixed Interest Rate |
|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students | 6.52% |
| Direct Unsubsidized Loans for graduate students | 8.07% |
| Direct PLUS Loans for parent borrowers and graduate student borrowers | 9.07% |
Current federal loan fees are:
| Loan Type | Loan Fee |
|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | 1.057% |
| Direct PLUS Loans | 4.228% |
Loan fees are deducted proportionately from each loan disbursement. Borrowers are responsible for repaying the full amount borrowed, including any loan fee deducted from the disbursement.
Loan Disbursement
Federal Direct Loan funds are disbursed to the student account after the student meets all eligibility requirements, completes all required loan documents, and begins attendance in eligible coursework.
Financial aid proceeds are not credited to the student account until after classes begin and all required documentation is complete.
Most federal loans are disbursed in multiple installments during the academic year. Loan disbursement timing may vary based on enrollment, loan period, start date, borrower requirements, and federal disbursement rules.
If loan funds exceed eligible charges on the student account, any resulting credit balance will be issued according to Rider University’s student refund process.
Reasons Federal Direct Loan Eligibility May Change or Be Lost
Federal Direct Loan eligibility may change after a loan is offered. Students and borrowers should review all eligibility requirements carefully and contact One Stop Services with questions before making enrollment changes.
Common reasons loan eligibility may be reduced, canceled, or delayed include:
- The student does not complete the FAFSA for the applicable academic year.
- The student does not submit requested documents or complete verification.
- The student is not enrolled in an eligible degree or eligible certificate program.
- The student is enrolled less than half-time.
- The student enrolls in coursework that does not apply to the student’s eligible program of study.
- The student does not meet Satisfactory Academic Progress requirements.
- The student reaches an annual, aggregate, or lifetime federal loan limit.
- The student receives additional financial aid or outside resources that reduce remaining loan eligibility.
- The student changes enrollment, housing status, grade level, dependency status, or program of study.
- The student withdraws, stops attending, or fails to begin attendance in eligible coursework.
- The student is in default on a federal student loan or owes an unresolved federal student aid overpayment.
- The borrower does not complete required loan documents, such as Direct Loan Entrance Counseling or the Master Promissory Note.
- A Parent PLUS or Graduate PLUS borrower does not meet federal credit requirements or does not complete required PLUS Loan documents.
- The borrower requests that all or part of the loan be canceled.
Federal Direct Loans are subject to federal eligibility rules and institutional review. Loan amounts may be adjusted before or after disbursement if eligibility changes.
A reduction or cancellation of loan funds may create a balance due to Rider University if the loan was used to pay charges on the student account.
National Student Loan Data System Disclosure
Federal Direct Loans borrowed by students or parents are submitted to the National Student Loan Data System (NSLDS). Information in NSLDS is accessible to guaranty agencies, lenders, servicers, and institutions determined by the U.S. Department of Education to be authorized users of the data system.
Students and parent borrowers may view federal loans and grant information by logging in to StudentAid.gov and reviewing their account Dashboard.
Canceling or Reducing a Federal Direct Loan
Borrowers may cancel or reduce all or part of a Federal Direct Loan before the loan is disbursed or after the loan has been credited to the student account.
Students may request to cancel or reduce a Federal Direct Subsidized Loan or Federal Direct Unsubsidized Loan. Parent borrowers may request to cancel or reduce a Federal Direct Parent PLUS Loan. Graduate student borrowers may request to cancel or reduce a Federal Direct PLUS Loan, if applicable.
Before loan funds are disbursed, borrowers may contact One Stop Services to request a loan reduction or cancellation.
After loan funds are disbursed to the student account, Rider University will provide a written loan disbursement notice. The notice will include the loan amount, the anticipated or actual disbursement date, the borrower’s right to cancel all or part of the loan, and the deadline and procedure for requesting cancellation.
Borrowers who wish to cancel or reduce a loan after disbursement must submit the request in writing by the deadline listed in the loan disbursement notice. If the request is received within the required timeframe, Rider University will return the canceled loan funds to the U.S. Department of Education.
If a borrower requests cancellation after the deadline, Rider University may still be able to return loan funds if permitted under federal rules and institutional processing timelines. If the loan funds can no longer be returned by Rider University, the borrower may repay all or part of the loan directly to the federal loan servicer.
If loan funds created a refund or credit balance that has already been issued to the student or parent borrower, the borrower may be required to return those funds before Rider University can complete the cancellation or reduction request.
Canceling or reducing a loan may create a balance due to Rider University if the loan funds were used to pay tuition, fees, housing, meal plan charges, or other eligible charges on the student account. Students and borrowers should review the student account balance before requesting a loan cancellation or reduction.
Loan Repayment and Sample Repayment Schedule
Federal loans must be repaid with interest. Borrowers should review repayment options with their loan servicer and at StudentAid.gov.
Federal Direct Subsidized and Unsubsidized Loan borrowers generally enter repayment after a six-month grace period when the student graduates, leaves school, or drops below half-time enrollment.
Parent PLUS Loan repayment generally begins after the loan is fully disbursed unless the parent borrower requests and is approved for a deferment through the loan servicer.
The examples below are estimates using a 10-year Standard Repayment Plan. Actual repayment amounts may vary based on the amount borrowed, interest rate, repayment plan, loan fees, capitalization of interest, deferment, forbearance, repayment assistance options, and borrower activity.
| Sample Loan | Interest Rate | Estimated Monthly Payment | Estimated Total Paid over 10 Years |
|---|---|---|---|
| $5,500 undergraduate Direct Loan | 6.52% | $62.51 | $7,500.88 |
| $9,500 undergraduate Direct Loan | 6.52% | $107.97 | $12,956.07 |
| $20,500 graduate Direct Unsubsidized Loan | 8.07% | $249.48 | $29,937.66 |
| $10,000 Parent PLUS Loan | 9.07% | $127.05 | $15,246.59 |
| $20,000 Parent PLUS Loan | 9.07% | $254.11 | $30,493.18 |
Borrowers may use the Loan Simulator at StudentAid.gov to estimate payments under available repayment plans.
Loan Consolidation
Federal loan consolidation allows eligible borrowers to combine one or more eligible federal student loans into a single Direct Consolidation Loan with one loan servicer and one monthly payment. Consolidation may simplify repayment or provide access to certain federal repayment options, but it may also extend the repayment period and increase the total amount of interest paid over time.
Private education loans cannot be included in a federal Direct Consolidation Loan. Federal loan consolidation is different from private loan refinancing. Borrowers should review the terms carefully at StudentAid.gov before applying.
Federal Exit Counseling
Federal Direct Loan borrowers must complete exit counseling shortly before they graduate, leave school, or drop below half-time enrollment.
Exit counseling is required for Federal Direct Subsidized Loan borrowers, Federal Direct Unsubsidized Loan borrowers, and graduate student Direct PLUS Loan borrowers, if applicable. Exit counseling provides important information about repayment obligations, repayment plans, loan servicers, deferment, forbearance, loan consolidation, forgiveness, discharge, delinquency, default, and borrower rights and responsibilities.
Borrowers complete exit counseling at StudentAid.gov. Rider University may use exit counseling completion information to support federal loan counseling and repayment readiness.
Private Supplemental Loans
Private supplemental loans are non-federal education loans offered by private lenders. These loans are optional and credit-based. A student may need a creditworthy cosigner to qualify.
Students and families should complete the FAFSA and review federal, state, institutional, and other aid options before borrowing a private education loan. A borrower may qualify for Federal Direct Loans or other assistance under the Title IV federal student aid programs. The terms and conditions of Title IV federal student loans may be more favorable than the terms and conditions of private education loans.
Private loan interest rates, fees, repayment terms, borrower benefits, deferment options, approval criteria, cosigner requirements, and total repayment costs vary by lender. Private lenders are responsible for providing borrowers with required disclosures under the Truth in Lending Act, including information about loan costs, interest rates, repayment terms, and borrower rights.
Borrowers have the right to choose any lender or education loan product. Rider University will process a private loan from any eligible lender selected by the borrower. Borrowers will not be penalized for selecting a lender that does not appear on a Rider-provided lender comparison tool or reference list.
Private education loans must be certified by Rider University before funds may be disbursed. Loan certification confirms that the loan does not exceed the student’s cost of attendance minus other financial assistance.
Before a private education loan can be disbursed, the borrower must complete a Private Education Loan Applicant Self-Certification Form. This form requires the borrower to report the student’s cost of attendance, estimated financial assistance, and the difference between those amounts. Borrowers may obtain the self-certification form from their private lender.
ELMSelect is an online student loan comparison tool that provides students and families with a way to compare private student loan options. Borrowers may visit ELMSelect/Rider to begin the process.
Last updated 6/29/26