Direct Subsidized and Unsubsidized Loans are federal student loans offered by the
U.S. Department of Education (ED) to help eligible students cover the cost of higher
education at a college or university, community college, or trade, career, or technical
school. Visit the U.S. Department of Education’s Direct Subsidized Unsubsidized Loans web page for more information.
Federal Parent PLUS Loans are federal student loans offered by the U.S. Department
of Education (ED) to help eligible students cover the cost of higher education at
college or university, community college, or trade, career, or technical school. Visit
the U.S. Department of Education’s Direct PLUS Loans for Parents web page for more information.
Starting July 1, 2026, Federal Graduate PLUS Loans are no longer available to graduate
or professional students unless you qualify for the limited exception. To qualify,
you must have been enrolled in your program of study as of June 30, 2026, borrowed
a Direct Loan for that program prior to July 1, 2026, and remain continuously enrolled
in the same program at the same school.
Students who qualify for the limited exception may continue borrowing Graduate PLUS
Loans during their expected time to credential. “Expected time to credential” means
how long it should take you to finish your program. This amount of time is whichever
is the shorter of:
- Three academic years, or
- The remaining length of your program, based on how long the program is and how much
of it you’ve already completed.
Graduate and professional students who don’t (or no longer) qualify for the limited
exception are not eligible to borrow Graduate PLUS Loans.
For more information, visit Direct PLUS Loans for Graduate or Professional Students.
Private or alternative loans are loans offered by a bank or other financial institution
to help cover educational expenses.
You apply for them directly through your private lender of choice. A credit check
is required. The yearly amount you borrow cannot exceed the annual cost of attendance
for UToledo minus other financial aid you receive. You can find your cost of attendance
on your financial aid offer.
The University will process an alternative loan from any qualified lender that you
select.
Before applying for a private loan, we strongly encourage you to submit a FAFSA and
find out what lower-interest federal loan options you may qualify for. Federal loans
generally have lower interest rates and more flexible payment plans. Alternative loans
are not federally guaranteed. Interest rates, fees and terms vary widely by lender.
Review Federal Aid First for more details on the differences between federal and private loans.
International students
International students are limited in the types of financial aid they qualify for.
You may not apply for loans administered by the U.S. government. But you may be eligible
to borrow money from private lenders such as banks. Many will allow international
students to borrow money as long as they have an eligible co-borrower who is a U.S.
citizen or permanent resident. Some lenders also offer private educational loans for
parents or sponsors of eligible international students.
What’s a co-signer and do I need one?
A co-signer is a co-borrower who signs all the paperwork alongside you. It’s usually
someone who has a better credit history than you do. Some lenders require a co-signer
for students. And even if it isn’t required, it’s a good idea to apply for a private
loan with a co-signer who has good credit. You’ll have a better shot at being approved
and will often get a better interest rate or reduced fees.
Debt management
You may need loans to pay for college. But consider carefully how much debt you want
to take on. Only borrow what you need.
Think about your future career and salary and how much you will be able to afford
in payments.
Here are some tools to help you plan:
- Loan Simulator ― Estimate your federal student loan payments using actual or estimated loan information
under each available repayment plan.
- Creating a budget — Once you have a better idea of your expenses, you’ll know how much you need to
borrow.
- Financial Literacy — UToledo has some great tools to educate yourself about money management.
Interest rates and fees
These vary by lender. Interest rates may be fixed or variable (they can increase or
decrease over time). Often, your interest rate will depend on how good your credit
is. The better it is, the lower the interest rate. Make sure you know what you’re
getting into and what the interest rates and fees are before signing the dotted line.
Finding a lender
Explore loan programs with FASTChoice.
FASTChoice is a loan comparison tool. It compares lenders that have been providing
service to UToledo students for years. Use the "Filter" feature on FASTChoice to search
for loans that best fit your needs.
- Competitive rates and terms
- An easy online application process
- Sends funds via Electronic Funds Transfer (EFT)
- History of good customer service.
Review UToledo’s Historical Lender List — a list of providers our students have used in the past.
Our Alternative Loan Worksheet can be used in conjunction with these tools. It lists helpful questions to ask as
you compare loans.
The University of Toledo will process an alternative loan from any lender you choose.
We do not endorse any specific private lender or lending program. Review lender information
carefully. Check with multiple lenders for loan options.
Application process
- Choose a lender and visit their website to apply. Most lenders offer several different
types of alternative loans (undergraduate, graduate, medical, law and parent/sponsor
loans). Be careful to apply for the correct loan.
- Your lender will ask you how you want to apply your loans. Do you want to use the
funds for fall and spring semester? Or summer, fall and spring? Or some other combination?
Choose which semesters you want to apply your loan. Review the chart below and give
the corresponding loan period dates to your loan provider. Your loan will then be
divided equally for that time period.
- Once credit is approved, sign the promissory note and any other documents your lender
requires and return to the lender. The University of Toledo then receives an electronic
loan certification request. UToledo will determine eligibility (for instance, verifying
your enrollment, etc.) and submit the electronic loan certification to the lender.
- Carefully review all terms and conditions of the alternative loan before accepting
the loan. Compare fees and interest rates, and keep in mind that some lenders may
require payments while in school.
How do I receive my loan funds?
Private loan funds will be disbursed or paid to your student account once you complete
all the eligibility requirements and funds have been received from the lender. To
check for outstanding requirements:
Go to myUT → Student tab → My Account → Check Eligibility Status
