Loans

Loan Amounts

Generally speaking, loans are limited to the maximum of your Cost of Attendance minus other forms of aid. Loans can be used to pay for all parts of your cost of attendance, including living on or off campus.

The federal government limits their loans based on the type of borrower you are. A FAFSA is required for all federal loans, including PLUS loans. For federal loan amounts, choose the type of borrower you are:

Undergraduate Student Loan Information

Graduate Student Loan Information

Parent PLUS Loan Information

Interest Rates on Federal Loans

Federal loans (subsidized, unsubsidized, parent PLUS, and graduate PLUS) interest rates and fees are variable fixed. Variable fixed means the interest rates and origination fees are fixed for the life of the loan for all loans originated (disbursed) in a set timeframe. The interest rate timeframe is July 1 – June 30.  The origination fee timeframe is October 1 – September 30.  The rate and origination fee for your loan will be on the annual disclosure statement you receive once the loan is created.

2025-2026 Interest Rates

Undergraduate Subsidized/Unsubsidized Rate:  6.39%

Parent/Graduate PLUS Loan Rate:  8.94%

Graduate Unsubsidized Rate:  7.94%

Interest is the cost of borrowing money. Federal student loans accrue (build up) interest at different times depending on the type of the loan.

• Subsidized Loans: The government pays the interest while you’re in school at least half-time, during your grace period, and during deferment. That means your loan balance doesn’t grow during those times.

• Unsubsidized Loans: Interest starts accruing as soon as the loan is disbursed (sent to your school). If you don’t pay the interest while in school, it gets added to your loan balance later, and you’ll pay interest on a larger amount.

Interest is calculated daily using a simple formula based on your loan’s balance and interest rate. Only the amount that has paid to the school accumulates interest. If your loan is split between fall and spring, interest begins accruing on the fall disbursement in the fall. The whole loan will begin gaining interest after the spring amount is paid to the school.

Example:

Let’s say you borrow $5,500 in an Unsubsidized Federal Direct Loan with a 5% interest rate while in college.

• Each year, you’d be charged about $275 in interest ($5,500 × 0.05 = $275).

• That’s about 75 cents per day ($275 ÷ 365 days).

• If you stay in school for 4 years and don’t pay any interest, that’s about $1,100 in total interest.

• When you graduate, that unpaid $1,100 would be added to your loan, making your new balance about $6,600.

Origination Fees on Federal Loans

When you borrow a federal loan, the government charges an origination fee. This fee is a percentage of the total loan amount and taken out before the money is sent to Mines. The fee is charged on the disbursement each semester. If the loan is split between fall and spring, the fall origination fee comes off the fall disbursement and the spring fee comes off the spring disbursement.

2025-2026 Origination Fees

Undergraduate Subsidized/Unsubsidized Origination Fee: 1.057%

Parent/Graduate PLUS Loan Origination Fee: 4.228%

Graduate Unsubsidized Origination Fee: 1.057%

Example:

Let’s say you borrow $20,000 with an origination fee of 4.228%.

• Step 1: Calculate the fee amount.
  $20,000 × 0.04228 = $845.60

• Step 2: Subtract the fee from the total loan.
  $20,000 – $845.60 = $19,154.40

This means your school will receive $19,154.40, but you’ll owe $20,000 because the fee is included in the total amount you borrowed.

Even though you receive less money, you must repay the full $20,000, plus any interest that builds up over time.

Eligibility Requirements for Federal Loans

All federal loans (subsidized, unsubsidized, and PLUS) require a FAFSA every year. FAFSAs do not need to be received by the priority deadline for federal loan offers, however the student must be currently attending or planning to attend in the future for a loan to be offered. FAFSAs received after a student has ceased attendance do not qualify for a federal loan offer. 

Federal loans have specific requirements all students must meet:

• Be admitted into a degree-seeking program: Students admitted as Non-Degree seeking or are participating in a certificate program are not eligible for federal loans.
• Have a valid FAFSA on file and complete all requirements: Once federal loans have been offered, students must accept their aid offer and complete any outstanding requirements for their loans. Acceptance and requirements are located in Trailhead>Financial Aid card>Financial Aid Details button. PLUS loan borrowers need an approved credit application processed through studentaid.gov. 
• Enroll at least half-time each semester:
  • Undergraduate students must be in 6 credits of undergraduate-counting credits.
  • Graduate students must be in 4.5 credits of graduate-counting credits. Graduate students who qualify for Reduced Registration may enroll in 4 credits. The Office of Financial Aid will manually adjust your enrollment for financial aid purposes to 4.5 credits to allow federal loans to pay.
  • Enrolling in fewer than half time credits will mean that you are not eligible for federal student loan funding. Audit and test-out or placement credits do not count toward enrollment requirements. 
• Maintain Satisfactory Academic Progress: All types of federal financial aid requires a student to maintain Satisfactory Academic Progress. Visit our Keeping your Aid page to understand the pace and GPA requirements for your degree. 

Loan Repayment Options

Repayment on loans and the length of your repayment term depends on the type of loan you use. 

Federal Subsidized/Unsubsidized/Graduate PLUS Loans begin repayment six months after you graduate, leave school, or drop below half time enrollment. This six month grace period gives you time to get settled before you start making payments. There are many repayment options available for federal student loans. 

Parent PLUS Loans begin repayment after the loan is fully disbursed. If the loan is for fall and spring, repayment begins after the spring disbursement. When a parent applies for the loan, they can choose to defer payment until the student completes their undergraduate degree. If they choose that option, repayment will begin right after graduation, the student leaves school, or the student drops below half-time enrollment. The parent can also choose to defer the PLUS loan for the student’s six month grace period. 

Private Education Loans typically mimic federal loan repayment policies, but every loan is unique. You will want to review your private loan provider’s terms and conditions to understand how their loan repayment works. 

Loan Cancellation

Students may cancel a disbursement or portion of disbursement anytime during the financial aid year as long as they are still attending classes. Students should send an email to finaid@mines.edu from their Mines email address identifying the loan type, semester, and amount of the requested return. Their email should always include their CWID.

Parent borrowers of the parent PLUS loan may cancel a disbursement or a portion of disbursement any time during the financial aid year, as long as their student is still attending classes. The parent borrower should send an email to finaid@mines.edu from the email used on the PLUS loan application. The email needs to identify the student’s name, CWID, loan type (parent PLUS) semester, and amount of the requested return. A parent may not request cancellation of any loan other than the parent PLUS loan they borrowed.

If a student has loans up to their Cost of Attendance and receives another type of more beneficial aid (grants or scholarships), their loan(s) will be reduced to make room for the additional aid. The loans are reduced in the following order:

• Private Education Loans
• PLUS Loans (Parent or Graduate)
• Federal Unsubsidized Loan
• Federal Subsidized Loan*
  *If the student has limited need based on the FAFSA, this loan may be reduced first to make room in the student’s budget for additional need-based aid.