Union Institute and University

Federal Student Loans & Contacts

There are three types of federal student loans.

Perkins Loans

Federal Perkins Loans are made to undergraduate, graduate and professional degree students. Federal Perkins loans are offered to students who demonstrate financial need as evidenced by their annual FAFSA results and who are enrolled part-time or full-time. The Perkins is awarded on a first come first serve basis.  Federal Perkins loan are repaid to the school through University Accounting Services (UAS), a national Perkins Loan servicer.

Direct Loans

Federal DIRECT Loans are for undergraduate, graduate and professional degree students who are enrolled at least half-time. There are two types of Federal DIRECT loans: subsidized and unsubsidized. You must be an undergraduate student and have financial need as evidenced by your annual FAFSA results to receive a Federal subsidized Loan. The U.S. Department of Education will pay (subsidize) the interest that accrues on subsidized loans during certain periods. Financial need is not a requirement to obtain an unsubsidized loan. You are responsible for paying the interest that accrues on unsubsidized loans. Federal DIRECT Loans are repaid to the federal government. To avoid excess Student Loan Debt upon graduation, students should borrow the least amount needed to pay educational expenses.

Federal Student Direct Loan Limits for 2014-2015

Loan Level Undergraduate Students Graduate Students
Dependent1 Independent2
1st year (0-29 cr hrs) $5,500 ($3,500)3 $9,500 ($3,500) $20,500 ($8,500)4
2nd year (30-59 cr hrs) $6,500 ($4,500) $10,500 ($4,500) $20,500 ($8,500)4
3rd & beyond (60 or above credit hrs) $7,500 ($5,500) $12,500 ($5,500) $20,500 ($8,500)4
Aggregate $31,000 ($23,000) $57,500 ($23,000) $138,5005
  • 1 Except for those whose parents are unable to borrow a PLUS loan.
  • 2 These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.
  • 3 The numbers in parentheses represent the maximum amount that may be subsidized. There are new limits on the time in program for Subsidized Loans in addition to aggregate dollar limits.
  • 4 Graduate and professional students are not eligible to receive Direct Subsidized Loans for loan periods beginning on or after July 1, 2012.
  • 5 The aggregate amounts for graduate students include loans for undergraduate study.

Limits of Direct Subsidized Loans

Effective July 01, 2013, Federal Financial Aid regulations will limit the time undergraduate students are eligible for Federal Direct subsidized loans. The limit on interest subsidized loans not only restricts new subsidized loans but can also stop the interest subsidy on existing loans when certain qualifying events occur. This new federal law is designed to encourage students to graduate as quickly as possible and not remain on Federal Financial Aid. Visit StudentLoans.gov for details about this new 150% limit and the student loan entrance counseling required for all new borrowers.

PLUS Loans

Federal PLUS Loans are loans parents (of undergraduate students), graduate and doctoral students may obtain to help pay the cost of education.  This loan is credit based.  Federal PLUS Loans are repaid to the federal government.

Student Rights to Cancel full or partial loan disbursement

Students may contact the Financial Aid Office in writing to cancel a loan disbursement or request a smaller disbursement. Notification must be within the academic term and before the student accepts a refund of excess Title IV aid based on the loan disbursement. The Financial Aid Office will return loan proceeds to the federal lender thus lowering the amount the student borrowed. The Business Office has a procedure for notification by returning a Voided Refund check with written notice.


Student loans are borrowed money that must be repaid with interest. If you withdraw, drop to less-than-half-time, take an academic leave of absence, go on academic extension which is not equivalent to full-time academic study, graduate, or transfer schools, you enter repayment at the conclusion of your grace period.  Learn about Repayment Options based on income at  https://studentaid.ed.gov/repay-loans .  Calculate estimated repayment amounts at https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action.

Direct Loan Applicant Services

Fax: 877-623-5082
Borrowers may call for assistance with:

  • Filling out the electronic promisary notes
  • Appeal a Denied Credit Decision
  • Endorser Application Questions
  • Verify if MPN/Endorser Addendum was received

Electronic Master Promissory Note (eMPN)


Borrower Services

Federal Student Aid Loan Servicer

1-800-4-FED-AID (1-800-433-3243)
TTY (for the hearing impaired): 1-800-730-8913


Review your loan once it has been disbursed on the National Student Loan Data System.  At least once per year log into NSLDS and confirm your loans borrowed and disbursed by term.  Note your loan totals in case you are approaching the Aggregate Loan Limits for undergraduates and for graduates.

Direct Loan Consolidation

Loan Consolidation