Direct Loans are low-interest loans for students to help pay for their education after high school.  You must be enrolled as at least a half-time (6 credits) to be eligible. The lender is the U.S. Department of Education rather than a bank or other financial institution.  To be eligible for a Direct Loan, you must to complete a Free Application for Federal Student Aid (FAFSA).

There are two types of Direct Loans: subsidized and unsubsidized. You must have financial need to receive a subsidized Direct Loan. The U.S. Department of Education will pay (subsidize) the interest that accrues on subsidized Direct Loans during certain periods. Financial need is not a requirement to obtain an unsubsidized Direct Loan. You are responsible for paying the interest that accrues on unsubsidized Direct Loans.

There are limits on the amount you can borrow in Direct subsidized and unsubsidized loans depending on your grade level and on whether you are a dependent or independent student. This table shows the maximum Direct Loan you may borrow each academic year:

Parents may borrow a Federal Direct PLUS loan to assist with educational expenses.  Before a parent can apply for a PLUS loan their child must complete a Free Application for Federal Student Aid (FAFSA).  As of July, 2026 the maximum annual PLUS loan amount is $20,000/year per dependent student. The actual amount of the loan cannot exceed Cost of Attendance minus other financial assistance that the student expects to receive. In addition, there is an aggregate limit of $65,000 per dependent student. Repayment begins after the loan is fully disbursed (paid out).  However, a deferment may be requested while your child is enrolled at least half-time and for an additional six months after your child graduates, leaves school, or drops below half-time enrollment. Parents must be credit worthy, as determined by the credit check performed by the Department of Education.  Please visit the Department’s Direct Parent PLUS Loan web page for complete information about interest rates, fees, and repayment options.

All parent borrowers must complete the following (in order):

1. Federal Direct PARENT PLUS Loan Application/Authorization – This must be completed yearly or with each loan request. Submit this form to the Rocky Mountain College Financial Aid Office. PLUS Loan requests will not be processed until this document is received. PLUS loan funds are disbursed equally between Fall and Spring semesters. To help determine the annual loan amount to apply for, refer to the student’s registration billing statement that includes course schedule, total tuition, fees, housing and meal plan costs, expected financial aid, and remaining balance due, and use our Loan Calculator, or contact the financial aid office at finaid@rocky.eduor call 800.877.6259 ext. 1031. 

Parent PLUS Master Promissory Note (PMPN) – Complete a PMPN for each dependent student attending college. Once you complete a PMPN, it is good for 10 years.

As of July 2026, the U.S. Department of Education has discontinued the Direct Grad PLUS program. If you were already in School and borrowing money before the new law took effect, you may be protected by Legacy Status (See Below).

Private loans, also called alternative student loans, are available to students who need additional funds to meet educational expenses. The student’s loan eligibility is determined by the cost of attendance less other financial aid or the annual loan maximum amount as determined by the lender. In addition, the lender will look at your credit history and other factors to determine if they will lend to you. One lender might deny you while the next approves you because of the different ways they interpret your information.  Students may apply for these loans on their own, but oftentimes will need a cosigner.

Private loans are not for everyone. They can be expensive and should only be utilized when all other federal resources, such as Federal Direct Student Loans and Federal Direct Parent PLUS loans, have been exhausted.  Please read this Plain Language Disclosure for Direct Subsidized Loans And Direct Unsubsidized Loans Willian D. Ford Federal Direct Loan Program (Direct Loan Program) before borrowing a private loan.

Please visit FASTChoice for possible private loan lenders. The lenders and loan options presented in FASTChoice are compiled using neutral, student-centered criteria, including total borrower cost, repayment flexibility, approval times, customer-service metrics, and co-signer release options. At least two unaffiliated lenders are included. We review this list annually. You are free to choose any lender, including those not presented. If you choose a lender that is not presented, please contact the financial aid office.  Application processing will not be delayed unnecessarily if you choose a lender not presented.

Legacy Borrowers

If you were already in school and borrowing money before the new law took effect, you may be protected by Legacy Status.

Do you qualify?

You are a Legacy Borrower if:

• You received a federal student loan before July 1, 2026.
• You remain continuously enrolled in the same program of study.
• You stay at the same institution.

Why it matters:

If you qualify as a legacy borrower, you can continue to borrow under the old, higher limits (including Grad PLUS loans) for:

• Up to three additional academic years, OR
• Until you finish your current degree (whichever comes first).

Once you start a new degree program or transfer schools after July 2026, you will automatically switch to the new, lower limits.