Undergraduate Loan Programs

Types of Loans

Loans are the elements of a financial aid package that must be repaid. Some loans are offered by the Federal government, others come from private sources. All Federal Loans require the completion of the Free Application for Federal Student Aid. Each loan program is described below.

Federal Direct Subsidized Loan

Eligibility for the Federal Direct Subsidized Loan is based on financial need. Interest on the loan is paid by the Federal Government as long as the student is enrolled at least half-time (6 credit hours) during the term. The subsidized loan offers a 6 month grace period, before repayment on the loan is expected. The interest rate is determined each year by Federal guidelines. For 2025-26 the Federal Subsidized Direct Loan interest rate is 6.39%. There is an origination fee assessed by the Department of Education before disbursement. The loan fee as of October 1, 2023 is 1.057%. New borrowers need to complete the Loan Entrance Counseling and the Master Promissory Note.

Federal Direct Unsubsidized Loan

Eligibility for the Federal Direct Unsubsidized Loan is not based on financial need. The interest accrues on this loan while the student is still enrolled. The student may pay this interest while in school, or they can allow it to accrue and capitalize. Repayment begins six months after the student graduates or ceases to be enrolled at least half-time (6 credit hours) during the term. The interest rate is determined each year by Federal guidelines. For 2025-26 the Federal Unsubsidized Direct Loan interest rate is 6.39%. There is a loan fee assessed by the Department of Education before loan disbursement. As of October 1, 2023 the fee is 1.057%. New borrowers need to complete the Loan Entrance Counseling and the Master Promissory Note.

Parent Loans for Undergraduate Students (PLUS)

This federal loan program allows parents to borrow on behalf of their dependent student who is attending at least half-time (6 credit hours). The annual limit for this loan is determined by subtracting the total financial aid received from the student's total cost of attendance. The loan requires successful completion of a credit check. For 2025-26 the interest rate is 8.94%. The Department of Education will assess an origination fee of 4.228% before disbursement. Parents can apply online at Parent Plus Loan Application and complete the Master Promissory Note. Repayment begins 60 days after the loan is fully disbursed. The PLUS loan can be deferred until the student graduates or ceases to be enrolled. Deferment options can be requested through the loan servicer. If a parent is not approved for the PLUS Loan, we will offer up to $4000 additional for Freshmen and Sophomores and up to $5000 additional to Juniors and Seniors, in the Unsubsidized Direct Loan. The parent will receive an immediate response on his/her PLUS Loan and Millikin will be notified electronically.

Private/Alternative Loans

The private/alternative loans are commercial educational loans that may be used to close the gap between your financial aid and cost of attendance. Interest rates will vary from lender to lender. There are many alternative loan options in the lending community. Personal research is up to each individual or family, as Millikin cannot advise on these products. Elmselect gives you a list of our historical lenders. 

You are not limited to these lenders. Click here to go to our Elmselect lender sight.

Graduate Student Loans

Federal Direct Unsubsidized Loan

Federal Direct Unsubsidized Direct Loan for Graduate Students: Graduate students must file the FAFSA each year to be considered for the Unsubsidized Direct Loan. The student must maintain at least half time (6 credits) enrollment. The interest rate in 2025-26 is 7.94%, with an up front fee of 1.057%. First time borrowers, be sure to complete the Loan Entrance Counseling and the Master Promissory Note.

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS loan, is credit based and requires completion of the online application. The interest rate is 8.94% for 2025-26 and repayment begins 60 days after full disbursement, however, the student can request a deferment. Origination fee assessed on all loans is 4.228%. You will need to complete the FAFSA to be eligible. To apply go to Grad Plus Loan Application. First time borrowers - complete your Master Promissory Note.

Maximum annual loan limits

Maximum annual limits for undergraduate and graduate students are monitored by the college based on federal regulations.

If you progress from first year to second year or second year to third year in your credit hours during the academic year, you can request an increase in your loan amount by emailing us at studentfinancialservices@millikin.edu.

Exit Counseling

Federal Direct Subsidized/Unsubsidized Loan(s)

In accordance with Federal regulations, when a student ceases enrollment at least half-time or graduates, the institution is required to provide Direct Loan Exit Counseling.

You can complete your exit counseling at https://studentaid.gov/exit-counseling. You will sign in with your FSA ID.  You will see the amounts of your loans listed and go through helpful information on loan repayment, including who you owe, when you owe and a monthly expense estimate to help you with budgeting. Learn how to avoid default and what to do if you are having trouble making payments.

Please note:

Loan consolidation, loan forgiveness, and repayment options of Federal Student Loans are all done through studentaid.gov or by talking with the servicer of your loan. If students do not know their loan servicer,  they can view all loan details at studentaid.gov. You will sign in with your FSA ID. Loan consolidation is free, you should never pay a company to consolidate your Federal Loans.