Types of Financial Aid: Loans

Loans are available to students and parents. Eligibility is determined through the FAFSA. Separate loan forms and processes must be completed. Repayment is in accordance with the terms of the loan.


Federal Direct Student Loan Program

  • Available to all students enrolled in at least 6 credits.
  • There are two types of Federal Direct Student Loans, Subsidized (interest paid by taxpayer funds while the borrower is enrolled at least half-time) and Unsubsidized (the borrower is responsible for interest, which begins to accrue as soon as the loan is disbursed). Some students may be eligible only for the Unsubsidized Loan.
  • Students must be enrolled in a financial aid-eligible degree or certificate program (non-matriculated students not eligible). 

Exception: Students taking prerequisite or non-remedial preparatory coursework needed to apply for admission or enter an eligible certificate or degree program may have some limited Direct Loan eligibility. (Students who are taking courses only to raise their GPA are not eligible for this exception.) To meet prerequisites for an undergraduate degree program, it may be possible to borrow up to $2625 per academic year in combined Subsidized and Unsubsidized Loans (and for independent students, up to $6000 per academic year in additional Unsubsidized Loan) for up to 12 consecutive months. Loan amounts can be higher for preparatory work for a graduate degree. The Unofficial Credit Evaluation for Prerequisite Coursework form must be submitted.

  • Students must be making required satisfactory academic progress.
  • Eligibility for loan funds is determined by need, cost of attendance, estimated family contribution and the number of credits completed in your program of study.
  • Interest rate is 4.66 % * for Subsidized (no interest during school) and Unsubsidized (interest accrues during enrollment) loans; loan fees are approximately 1.072% * of the amount borrowed.
  • Repayment begins 6 months after dropping below half-time (below 6 credits). All students who receive a loan must complete Exit Counseling upon withdrawal or graduation from Shoreline. 
  • Eligibility is determined through the federal aid application process. Students must submit the FAFSA, the Shoreline Data Sheet and complete all other required steps, including submitting the Loan Request Form, and the electronic Master Promissory Note, and the Entrance Counseling.

Parent PLUS Loan

This is a federal loan available to parents of dependent students; not based on student "need"; 4.292%* loan fees; 7.9%* interest rate. Students must first complete all steps in the financial aid application process.

  1. Parents must complete the Master Promissory Note for Parent PLUS loans. This is completed on the web at studentloans.gov; sign in with parent information and choose "Complete Master Promissory note" and then click on “Parent PLUS.”
  2. The student and parent borrower complete the Parent PLUS Loan Form and submit it to the Financial Aid Office. This form is available at the Financial Aid counter in the FOSS (5000) Building and on the Financial Aid forms page . The U.S. Department of Education will conduct a credit check on the parent borrower.

Nursing Student Loan

These loans are for students admitted to the Nursing program. A completed financial aid file is required to apply for the Nursing Student Loan for up to $2,500 per year as determined by federal guidelines. These loans must be repaid during a 10-year period after completing the degree program. Interest rate is 5% * and is deferred as long as the student is enrolled at least half-time (6 credits) while pursuing a degree in the Nursing field.

Alternative/Private Loans


As higher education costs continue to rise, many college students find that they need to look beyond traditional financial aid. Before considering a private loan, make sure you've applied for any financial aid you might be eligible to receive:

  • Explore all other financing options including part-time employment, and private scholarships and grants. A good place to start is theWashBoard.org, a free scholarship search Web site.
  • If you are not eligible for any other type of aid, educate yourself about borrowing private loans by visiting FinAid! for explanations on the costs of borrowing and how to compare lenders.
  • If you are receiving other financial aid, before taking out a private loan, check with the financial aid office to determine the maximum amount you can borrow without affecting your other aid awards.


*subject to change