Federal Direct Loan

A Federal Direct Loan is a low-interest loan to help students with educational expenses. There are two types of Federal Direct Loans, subsidized and unsubsidized. The federal government pays the interest for subsidized loans until the student ceases to be enrolled at least half time, or the student loses subsidy eligibility. The student is responsible for paying the interest on an unsubsidized loan. All Federal Direct Loan funds must be repaid according to the terms specified in the promissory note. Loan repayment begins six months after the student graduates or ceases to be enrolled at least half time. All borrowers are expected to take part in loan counseling. All new students will be required to wait 30 days from their starting date before being eligible to receive any loan proceeds.

Federal Parent Loan for Undergraduate Students (PLUS) Loan

A Federal Parent Loan for Undergraduate Students (PLUS) is a low-interest loan to help parents, step-parents, or legal guardians pay for their dependent student’s educational expenses. Students must complete the Free Application for Federal Student Aid (FAFSA) before a PLUS loan can be certified. Students must file the FAFSA as a dependent student, although the parent applying does not have to be listed on the FAFSA. Parents must pass a credit check to be eligible for this loan. The parent is the borrower for the PLUS loan program. Generally, repayment begins within 60 days after the final loan disbursement is made to the borrower. If parents do not pass the credit check, the student can qualify for additional unsubsidized loan funds. Please see the Financial Aid Office for more information.

In order to receive loan funds, you must complete the following steps:

  1. Fill out the Free Application for Federal Student Aid (required every school year).
  2. After submitting the Free Application for Federal Student Aid (FAFSA), you will receive an Award Notice. If you are awarded a student loan, you will receive processing instructions with the Award Notice.
  3. Loans need to be accepted or declined through your NeTPartner on UA Rich Mountain.
  4. You must complete the Master Promissory Note via the site.
  5. You must complete Entrance Counseling via the site. Note: Entrance Counseling is required only the first time you borrow at the UA Rich Mountain.
  6. You must complete the Parent Plus Loan Authorization Form and submit to the Financial Aid Office.
  7. You must fulfill the requirements of enrolling at least half-time before the funds are disbursed.

* Remember that changing enrollment to less than full-time may cause changes in your financial aid.

The funds will then be sent directly to the UA Rich Mountain. Once your funds have arrived, an email will be sent to your UA Rich Mountain account.

After selecting the aid year you wish to view, you will see your financial aid broken down by the term. If you care to see the details of each term, you can select the corresponding link.

Your loan information will also be available through the National Student Loan Data System (NSLDS).  All loan information will be submitted to NSLDS and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

If you have any questions regarding your financial aid, please come by the Office of Financial Aid or

Federal Student Aid Loans

Visit the Federal Student Aid website to review the current interest rates and origination fees for Federal Student Loans.

Private Loans

Non-Federal Private Educational Loan

What are Private Loans? Private loans, also referred to as alternative loans, help ”bridge the gap” between the financial aid a student has been awarded, and any additional amount they feel may be needed to help achieve their educational goals. These are credit-based loans that can be applied for through individual banks or lending institutions. Being approved for a Private Loan depends largely upon the credit score of the borrower (and co-signer). With the continuation of tightened credit markets, the belief is that most students applying for Private Loans will need co-signers on the application in order to get approved. The applicant must meet the lender’s credit requirement. The interest rate, terms, and conditions vary among lenders. While the rates and repayment terms on Private Loans typically aren’t as solid as those offered on the various federal student loans, potentially using Private Loans are often a wiser financial decision to “bridge the gap” than using credit cards or home equity lines of credit. However, it is ultimately the responsibility and choice of the borrower (and co-signer) to make the best personal financial decision.

How to Apply

Step 1: Visit:

Step 2: Before getting to the private loan application, you will be required to read and answer questions related to borrowing a private loan.

Step 3: Complete the online application by reviewing the Loan Product Summaries and choosing your preferred Lender by clicking the “apply” button associated with your choice.

Step 4: After your application has been submitted to your lender, if your credit is approved, UA Rich Mountain will receive notification and complete the school certification.

Please note the following institutional information pertaining to private loan borrowing:

  • Private loans are not subject to students’ meeting SAP.
  • Students must be enrolled in at least 3 credit hours before UARM will certify a private loan.
  • Students are encouraged to complete a FAFSA, although it is not required to be considered for a private loan.
  • If selected for verification, it is not required if the student is only receiving private loans.
  • Private loans have 2 disbursements per semester.
  • Students’ awarded loan amounts must stay within designated budget/cost of attendance for the academic year/term indicated.

The following equation is used to determine alternative loan eligibility:

Cost of Attendance (COA) minus all aid awarded equals maximum private loan eligibility.

Example: A student might request $18,000, but he might only have a COA of $13,000. The student would only be eligible for $13,000 (if no other aid was awarded).

Frequently Asked Loan Questions