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Note: Direct Loan annual loan limits are provided at: under “How much can I borrow?”

Financial Aid Code of Ethics

Student Loans

  • Student loans are borrowed money that must be repaid.
  • Students must be enrolled at least part-time (6 hours for undergraduate or 5 hours for graduate student) each semester to receive loan funds.
  • First-time borrowers must complete Entrance Loan Counseling and electronically sign a Master Promissory Note (MPN) before a loan can be processed.
  • Loan funds are disbursed in two installments; the first during the fall semester and the second during the spring semester. Loans for one term only have a single disbursement.
  • Students who withdraw or drop to less than ½ time during the Fall semester will have the Spring disbursement of their loans canceled. A loan reinstatement form must be completed to request reinstatement of Spring loan funds should the student enroll for the Spring semester.
  • Student loan funds must first be used to pay tuition, fees, room and board. Remaining loan funds will be refunded to the student.

Stafford Loans

Subsidized Loans

  • Available to students who demonstrate financial need.
  • The U.S. Department of Education pays the interest while the student is enrolled in school at least half-time, for the first six months after a student leaves school (grace period) or during a period of deferment.

Unsubsidized Loans

  • Does not require students to demonstrate financial need, but cannot exceed the cost of attendance.
  • The student is responsible for paying interest that accrues from the time the loan is disbursed until the loan is paid in full.
  • The student may pay the interest while in school or during a period of deferment or forbearance.
  • The student may allow the interest to accrue and have the interest added to the principal amount of the loan. If a student chooses not to pay the interest as it accrues and allows it to be capitalized, this will increase the total amount that must be repaid. Interest will be charged on a higher principal amount.
  • The student may receive both subsidized and unsubsidized loans for the same enrollment period depending on financial need. The total amount of loans may not exceed the annual loan limit.

Parent Loans, PLUS

  • PLUS loans are available to parents to help pay for the education of a dependent student who is enrolled at least half time and making satisfactory academic progress.
  • A completed FAFSA must be on file before the PLUS loan can be processed.
  • The interest rate is variable not to exceed 9%.
  • Parents may borrow up to the total cost of attendance less aid awarded and other educational resources.
  • Parents are required to pass a credit check or demonstrate extenuating circumstances. If a parent is denied the PLUS Loan due to adverse credit, the student may contact the Financial Aid Office to see if additional funding is available.
  • Loan repayment begins 60 days after the loan is fully disbursed.
  • Apply for a PLUS Loan through the Direct Loan Program.

The Federal Stafford Loan Process

  • Complete FAFSA and submit additional documents as requested.
  • Accept the Award Offer on UCONNECT.
  • Complete Entrance Loan Counseling visit the student aid website.
  • The lender sends loan funds to the school & the school disburses the fund to Bursar account balance.
  • Remaining funds are issued to the student.

Private/Alternative Loans

  • Private (or "alternative") student loans may be an important funding source for students who are ineligible for federal student loans or who need more loan funds than the federal programs can supply.
  • The University of Central Oklahoma requires all students applying for private or alternative loans to complete a FAFSA and be considered for federal funding first.
  • To apply for a private loan click here to view the borrower benefits and to apply electronically: https://choice.fastproducts/org/FastChoice/home/315200/1
  • Students should allow a minimum of three weeks from the time the student requests the loan on the lender's website until loan proceeds are received by UCO.

Federal Perkins Loans

Federal regulations have ended the Perkins Loan Program beginning with 2018-2019. Students that received a Perkins Loan in the 2017 fall and 2018 spring semester have no additional eligibility after the 2018 spring disbursement.