Student Loans

Student loans fall into two general categories.

Subsidized Loans

Subsidized loans (also referred to as need-based loans) are interest-deferred during in-school periods. This means interest is neither charged to the student nor added to the amount borrowed while the student is enrolled. Interest begins to accrue on subsidized loans after enrollment ceases. Not all students will qualify for subsidized loans—a financial aid counselor must determine your eligibility for these need-based loans.

2018–19 Academic Year
Two subsidized loans are available to Princeton students

Subsidized Loan Descriptions

Loan Type	Interest Rate	Fees	Annual Limit	Repayment Period
Direct Subsidized Stafford Loan	5.05% fixed – charged after enrollment ceases	1.066%	Fr –  $3,500 So – $4,500 Jr  –  $5,500 Sr –  $5,500	Begins 6 months after borrower leaves school – maximum 10-year repayment term
Princeton Subsidized Loan	5% fixed – charged during repayment	None	Determined by Financial Aid Office	Begins 9 months after borrower leaves school – maximum 10-year repayment term

Unsubsidized Loans

Unsubsidized loans are used to replace the expected family contribution and finance a portion of the family’s payment to Princeton. There is no interest deferment on unsubsidized loans—interest must either be paid while the student is enrolled or be added to the loan principal.

2018–19 Academic Year
Two unsubsidized loans are available to Princeton students

Unubsidized Loan Descriptions

Loan Type	Interest Rate	Fees	Annual Limit*	Repayment Period
Direct Unubsidized Stafford Loan	5.05% fixed – accrues during enrollment	1.066%	Fr –  $5,500 So – $6,500 Jr  –  $7,500 Sr –  $7,500	Begins 6 months after borrower leaves school– maximum 10-year repayment term
Alternative Loans	Typically variable – tied to a market index (Prime, Libor, etc.) plus up to 10 points. Typical range is 4% to 15%.	May range from 0 to 11% of the loan principal	Cost of attendance minus student aid	Typically begins 6 months after borrower leaves school – typical maximum 10-year repayment term

*includes subsidized and unsubsidized Stafford loans

Advice Regarding Alternative Loans
Alternative loans are available from a variety of lenders outside the University. These loans are credit-based and should be viewed as a last resort after other borrowing options have been considered. Although terms and rates vary among private lenders, in many cases a Stafford loan may provide the student with more beneficial terms and conditions than an alternative loan. The financial aid office does not recommend specific lenders, as described in our code of conduct.

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Please contact the Financial Aid Office prior to applying for a student loan.