Student loans provide financing for higher education and are serious legal obligations that must be repaid according to the terms of the lending program. The Office of Financial Aid encourages students to first consider loans offered through the U.S. Department of Education before alternative programs offered by the State of New Jersey or private lenders.
Federal Loan Programs
Direct loans are borrowed by the student, and therefore are taken out in the student's name. There are two types of Direct loans: subsidized and unsubsidized. Direct subsidized loans do not charge the student interest when enrolled at least halftime (6 credits) and during periods of deferment. Direct unsubsidized loans charge the student interest during all periods, including when they are enrolled and periods of deferment.
Eligibility: All students may apply for a Direct loan; subsidized loans are based on financial need. Aggregate loan limits apply.
Annual limits: Loan limits are determined by dependency status and grade level.
Dependent, First-Year Students: $5,500 ($3,500 may be subsidized).
Dependent, Second-Year Students: $6,500 ($4,500 may be subsidized).
Independent, First-Year Students: $9,500 ($3,500 may be subsidized).
Independent, Second-Year Students: $10,500 ($4,500 may be subsidized).
Apply: Complete the FAFSA. Visit the
Federal Aid webpage for step-by-step instructions and helpful hints when navigating this process.
Additional requirements: The student borrowing the loan must complete Entrance Counseling for
Rowan College, sign a Master Promissory Note, and complete the Annual Student Loan Acknowledgement at
Repayment: Students will enter repayment on their loans in one of three ways.
Six months after they graduate with their degree.
Six months after they stop attending classes.
If they fall below halftime enrollment (less than 6 credits).
Learn more about the Direct loan program, including current interest rates, via the U.S. Department of Education.
Parent PLUS Loans
Parents can borrow loans on behalf of the student, however, they are subject to a credit check and prior approval. Interest is charged during all periods over the life of the loan.
Eligibility: Parent borrowers must not have adverse credit history and the student must be enrolled at least halftime (6 credits).
Annual limits: The maximum PLUS loan amount a parent can borrow is the cost of attendance (determined by the school) minus any other financial assistance received by the student.
studentloans.gov; select "Parent Borrowers" and then "Apply for PLUS Loan."
Additional requirements: The parent borrowing the loan must complete entrance counseling for RCSJ and sign the master promissory note at
Repayment: If you are a parent borrower, you'll generally be expected to start making payments on your Direct PLUS loan once the loan is fully disbursed (paid out). However, you may request a deferment while your child is enrolled at least halftime and for an additional six months after your child graduates, leaves school or drops below half-time enrollment.
Learn more about the Parent PLUS loan program, including current interest rates, via the U.S. Department of Education.
If you are interested in applying for Alternative Loans you can review your options online at ELMSelect.
The RCSJ Office of Financial Aid will process alternative loans to a student's account. To do so, the college must have a valid FAFSA on file for the student. The Office of Financial Aid will not package alternative loans or forms of aid to a student's account without a FAFSA.
Students must complete the loan application according to the private lender's guidelines. It's important to review the interest rates, terms of the loan and repayment requirements before borrowing an alternative loan.
Note: The Office of Financial Aid considers the NJ CLASS loan offered through the State of New Jersey's Higher Education Student Assistance Authority (HESAA) as an alternative loan program.