An education loan is a form of financial aid that must be repaid, with interest.

Eligibility may be based on Cost of Attendance and financial need for the loan. Each loan type comes with certain eligibility requirements and terms that must be met. 

Federal Loans

Federal Direct Subsidized Loans

Federal Direct Subsidized Loans (Subsidized Stafford Loans) are need-based, available only to undergraduates, and do not accrue interest while a student is enrolled in school at least half-time or during deferment periods.

How to apply

Maximum award amount

Year Dependent Students Independent Students
Freshmen $3,500 $3,500
Sophomores $4,500 $4,500
Juniors & Seniors $5,500 $5,500

Loan repayment

Six months after you terminate your education or cease to be enrolled half-time, repayment of your loan(s) begins. Repayment, in most cases, must be completed within 10 years.

All Federal Subsidized Direct Loan borrowers must complete an exit interview before graduation, withdrawal or leaving Frostburg State, even though they may plan to return at some time in the future.

Federal Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans (Unsubsidized Stafford Loans) are non-need-based and do accrue interest while a student is enrolled. This loan is available to undergraduates and graduate/professional students.

How to apply

Maximum award amount

Year Dependent Students Independent Students
Freshmen $5,500 ($3,500 subsidized) $9,500 ($3,500 subsidized)
Sophomores $6,500 ($4,500 subsidized) $10,500 ($4,500 subsidized)
Juniors & Seniors $7,500 ($5,500 subsidized) $12,500 ($5,500 subsidized)
Graduate/Professional not applicable $20,500

Aggregate Loan Limits

There are limits on the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits).

  • Undergraduate dependent student borrowing is by limited annually by academic grade level, not to exceed $31,000 ($23,000 of which is subsidized loans).
  • Undergraduate independent student borrowing is not to exceed $57,500 ($23,000 of which is subsidized loans).
  • Graduate student borrowing not to exceed $138,500 ($65,500 of which is subsidized loans) including undergraduate loan balances.

Federal Direct PLUS Loans

Direct PLUS Loans are available to the parents of undergraduate students (Parent PLUS) and to graduate and professional students (Grad PLUS). Direct PLUS Loans have a fixed interest rate for the life of the loan. The maximum PLUS loan amount you can receive is the cost of attendance minus any other financial aid received.

Loan repayment

Repayment on parent PLUS loans begin after the loan has been fully disbursed, unless special arrangements have been made and finalized between the borrower and lender.

For Grad PLUS loans, you don't have to start making payments until six months after you graduate, leave school, or drop below half-time enrollment.

Federal Loan Requirements

All students and parents seeking a federal loan must complete the Annual Student Loan Acknowledgement (ASLA) at least once every award year before any student or parent loan funds can be disbursed. By completing the ASLA, you are acknowledging that you understand that all loans must be repaid, as well as how much you currently owe in federal loans. When completing the ASLA, you will be given data about FSU, such as cost, graduation rate, and average total debt borrowed per student based on each student's current program of study. You will also be provided with an estimated monthly loan payment, the amount of loans that you have borrowed so far, as well as program borrowing limits (lifetime aggregate loan limits).

Alternative Loans

Alternative loans are private education loans and are not federally regulated loans. The fees, interest rates, and repayment terms are set by the lender. These loans are only recommended by our office as a last resort.


All students who are applying for a private loan must complete a self-certification form and return it to their lender before their loan can be approved. This form will be provided to you by your lender; however, you may also obtain the form from us.

Self-Certification Form

List of Alternative Loan Lenders

The university makes a list of several alternative loan lenders that are frequently used by our students. Please keep in mind that you are not required to use one of the lenders displayed on this list and Frostburg State does not endorse any particular private loan company. These lenders are presented for informational purposes only. The following will enable you to compare popular private loan lenders, as well as provide you with their contact information should you choose to apply.

Alternative Loan Lender List

Frostburg State adheres to the Maryland's College Loan Code of Conduct.

The lenders which appear on the list were chosen because they met carefully selected criteria and offer services we feel are an asset to the students of Frostburg State University.

Loan repayment

Students may check their loan history by logging into the National Student Loan Database for Students. This website provides information on the original amount, disbursed amount, and outstanding balance for each federal loan borrowed by a student. It also provides information on each loan's interest rate and accumulated interest.

Federal loan repayment plans

It’s important to find the right repayment plan for you in order to manage your money and make timely payments on your student loans after graduation. The government offers a variety of repayment plans to cater to different individuals’ needs. The federal loan repayment plans are listed below:

  • Standard Repayment Plan
  • Graduated Repayment Plan
  • Extended Repayment Plan
  • Income Based Repayment Plan (IBR)
  • Pay As You Earn Repayment Plan
  • Income-Contingent Repayment Plan
  • Income-Sensitive Repayment Plan

Federal Loan Repayment Plans

Default Rate

Frostburg State's current default rate is 6.6%. A default rate is the percentage of a school's borrowers who entered loan repayment during a specific year and then defaulted on that loan prior to the end of the next fiscal year. If a student has defaulted on a loan, then that student is more than 270 days behind on their loan payment. The national cohort default rate average is currently 9.7%.


Students having difficulties resolving a dispute over their federal education loans are given the option of contacting a Federal Student Aid Ombudsman to help find a solution to any problem that they have not been able to resolve through other channels.

Office of Financial Aid

  • Monday - Friday: 8 a.m. - 4:30 p.m.
  • FAFSA: 002072