Loans

Federal Direct Subsidized and Unsubsidized Loans

Direct Loans are federal student loans offered through the U.S. Department of Education to help cover the cost of higher education.

Direct Subsidized Loans

Direct Subsidized Loans are available to undergraduate students who demonstrate financial need as determined by federal regulations.

• The Office of Financial Aid determines the amount you can borrow based on your eligibility and overall financial aid package.
• The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are enrolled at least half time, during the six-month grace period after you leave school, and during approved deferment periods.
• Students must complete the FAFSA to be considered for these loans.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to undergraduate, graduate, and professional students regardless of financial need.

• You are responsible for all interest that accrues on a Direct Unsubsidized Loan during all periods.
• If you do not pay the interest while in school, during grace, or during deferment or forbearance, the unpaid interest will be capitalized (added to your principal balance) when you enter into repayment.
• The Office of Financial Aid determines the amount you can borrow based on your cost of attendance and other financial aid received.

Current loan limits, interest rates, and origination fees are available on the Federal Student Aid website: http://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized

Upcoming Changes (Effective July 1, 2026)

Federal legislation scheduled to take effect July 1, 2026, will update the borrowing limits and structure of Direct Unsubsidized Loans for new students, new borrowers, and students entering new degree programs. Students who borrowed before this date may be covered under a legacy provision, allowing continued borrowing under prior rules for a limited period. Full details regarding legacy eligibility and transition provisions will be available once the U.S. Department of Education completes its rulemaking process.

Undergraduate Students

• Loans will be prorated based on enrollment status

Graduate Students

• Loans will be prorated based on enrollment status
• Annual limit: $20,500
• Aggregate limit: $100,000 (does not include undergraduate borrowing)

Professional Students

• Clarification from the U.S. Department of Education is pending regarding which programs qualify as “professional.” LLU degrees currently considered professional under the current federal guidelines:
  • Medicine (M.D.)
  • Dentistry (D.D.S.)
  • Pharmacy (Pharm.D.)
• Loans will be prorated based on enrollment status
• Annual limit: $50,000
• Aggregate limit: $200,000 (does not include undergraduate borrowing)

Additional Information

Interest rates and loan fees are set annually by federal law and may vary each year. For the most up-to-date information, visit: http://studentaid.gov/understand-aid/types/loans/interest-rates
 

Direct PLUS Loans are federal loans available to help cover education costs not met by other financial aid. These loans are made by the U.S. Department of Education to either graduate or professional students (Graduate PLUS Loans) or to parents of dependent undergraduate students (Parent PLUS Loans).

Eligibility and General Information

• Borrowers must not have an adverse credit history.
• A credit check is required as part of the PLUS Loan application.
• Borrowers with an adverse credit history may still qualify by obtaining an endorser or by documenting extenuating circumstances through the U.S. Department of Education’s reconsideration process.
• Additional loan counseling is required for borrowers approved under either of those conditions.
• The maximum loan amount is the cost of attendance (determined by the school) minus other financial aid received.
• All PLUS Loan borrowers must complete a Master Promissory Note (MPN) and Entrance Counseling before funds can be disbursed.

Current interest rates and origination fees are available at: studentaid.gov/understand-aid/types/loans/plus

Upcoming Changes (Effective July 1, 2026)

Federal rules governing Direct PLUS Loans will change beginning July 1, 2026.

• Graduate and professional students who are new students and/or borrowers on or after July 1, 2026 will no longer be eligible for new Graduate PLUS Loans.
• Parent PLUS Loans will remain available to eligible parents of dependent undergraduate students, though updated federal limits on annual and aggregate borrowing are expected to apply.
• Legacy borrowers — students who received a Direct Loan before July 1, 2026 — may continue borrowing under prior rules for a limited period while enrolled in the same academic program, generally up to three academic years or until program completion, whichever occurs first.

For updates and detailed guidance as these changes are implemented, visit: studentaid.gov/announcements-events

Loma Linda University has various types of Institutional Loans which are available to both undergraduate and graduate students. The majority of the loans are awarded based on financial need and submission of all student requirements.  Additional requirements may be needed before the loans can be awarded.  Check student requirements periodically to confirm no additional documents are needed. 

Additional Loan Requirements:

• No loan defaults
• Must be enrolled at least half time each quarter for disbursement (some loans may require full time enrollment)
• Enrolled in an accredited degree or certificate program
• Completed promissory note

Loma Linda University Institutional Loans

The choice of a lender for your private student loan is yours. Private loans are funded through banks and other private lending institutions. We recommend you only consider private loans after maximizing any federal student loans for which you may already qualify. Federal student loans, unlike private loans, are required by law to provide a range of flexible repayment options including, but not limited to, income-based and income-contingent repayment plans, as well as loan forgiveness benefits, that other student loans are not required to provide. Since the Department of Education does not regulate private student loans, their terms and conditions can vary widely. Private loans typically also require a credit-worthy co-signer. The LLU Office of Financial Aid has opted to use FASTChoice, a loan comparison service, offered free of charge to schools and lenders, by the Great Lakes Higher Education Corporation. FASTChoice helps you determine your best loan option(s) by providing detailed information on the various loans, as well as the terms and benefits offered by different lenders. Go to FASTChoice to search and compare private loan options. Should you decide to apply for a private loan, be patient and respond quickly to all requests from your lender to ensure prompt receipt of your funds. After your loan is approved, the lender will contact us to certify the loan. Once we confirm your eligibility, we will certify the amount of your loan and return an electronic response to your lender. After final loan approval, your lender will send funds to us for disbursement to your student account. We attempt to process private loans as quickly as possible, but we must allow for the "right to cancel" period to expire. In accordance with the Higher Education Opportunity Act, you have three days to cancel your loan after you receive your final disclosure. Please allow for those three days, plus up to seven additional days for processing.

Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying the Financial Aid Office (FAO).  After your loan money has disbursed, there are two ways to cancel all or part of your loan:

1. You may notify the FAO (within certain timeframes). You may tell the FAO that you want to cancel all or part of your loan within 14 days after the date you are notified of your right to cancel all or part of the loan, or by the first day of the payment period, whichever is later.  You may submit a completed Request to Change – Aid Adjustment form to the FAO, which will allow you to cancel all or partial amounts of a loan.

If you ask to cancel all or part of your loan within the timeframes described above, the FAO will return the cancelled loan amount to your servicer. Requests made after 30 days will result in the reduction or cancellation of subsequent disbursements of the loan, if future disbursements exist.  After the final disbursement of the loan, and if a credit exists on your student account, requests to cancel or reduce a Direct Loan disbursement may be processed at the discretion of the FAO if received after 30 days but within 120 days of the last disbursement.

2. You may return all or part of your loan directly to your servicer. Within 120 days of the date your loan funds are disbursed (by crediting the loan money to your student account, by paying it directly to you, or both), you may cancel all or part of your loan by returning all or part of the loan money to  your servicer. Contact your servicer for guidance on how and where to return your loan money.  To determine your Direct Loan Servicer, go to the Federal Student Aid/ website. 

You do not have to pay interest or the loan fee on the part of your loan that is cancelled or returned within the timeframes described above. Your servicer will adjust your loan amount to eliminate any interest and loan fee that applies to the amount of the loan that is cancelled or returned.