Student Loans

The School of the Art Institute of Chicago (SAIC) administers several loan programs to help ensure that all eligible admitted students are able to cover the cost of tuition. Eligibility for federal programs is based on the results of the Free Application for Federal Student Aid (FAFSA) application. The Federal Direct PLUS and Private loan programs also require that the borrower is creditworthy or has a creditworthy endorser (a cosigner). Details on federal loans, including interest rates and loan processing fees, are available on the Department of Education's Student Aid Loan website. 

For an overview of federal student loans, please review the following guides:

• Federal Student Loans-Basics for Students [PDF]
• Federal Student Loans-Basics for Parents [PDF]

Loan Application Deadlines and General Details: All loan steps should be completed by July 1 before each fall-to-spring academic year and by January 1 for spring-only semesters . Borrowers must reapply for Federal Direct PLUS and private loans each year or term that the loan is desired. Per federal law, all federal loans must be certified by the last day of the semester that the student is enrolled, so borrowers are asked to complete all federal loans steps at least five business days before the last day of the student's enrolled term for processing purposes. Federal Direct Stafford normally is required one-time while at SAIC. 

View our Student Loan Instructions.

Federal Direct Stafford Loans: Annual and Aggregate Limits

Maximum Federal Direct Stafford Loan Amounts (per year)

Please note: All students have a total or aggregate limit for borrowing Federal Direct Stafford Loans over the course of their entire education.

**If a parent is denied a Federal Direct PLUS Loan, SAIC can award an additional unsubsidized loan. For freshman and sophomore students, this eligibility is $4,000 and for junior and senior students it is $5,000. See the Federal Direct PLUS Program section below for more information on Federal Direct PLUS Loans.

This program offers undergraduate and post-baccalaureate students low-interest, fixed rate loans. Interest begins accruing after the student drops below half-time enrollment or graduates and repayment begins six months after that. For more information visit the U.S. Department of Education website.

Eligibility

To be eligible for a Federal Direct Subsidized Stafford Student Loan, an undergraduate or post-baccalaureate degree-seeking student must be enrolled at least half-time and demonstrate financial need on the federal FAFSA form.

Annual Award Amount

The award amount is the lesser of $5,500 or the determined amount of financial need based on the student's academic level. An origination fee of up to 1.073 percent of the loan amount may be deducted up front from the funds. Repayment begins after the student ceases to be enrolled at least half-time.

This program offers students a low-interest fixed-rate loan. Interest begins accruing upon disbursement and must be paid quarterly though it can be added to the principal of the loan. Repayment begins six months after the student drops below half-time enrollment or graduates. For more information visit the US Department of Education website.

Eligibility

This program is available to undergraduate, post-baccalaureate, and graduate students. To be eligible, a degree-seeking student must be enrolled at least half-time and complete the annual federal FAFSA form.

Annual Award Amount

The max award amount is up to $7,500 for dependent undergraduate students minus subsidized eligibility based on the student's academic level and $12,500 for independent undergraduates or dependent student's whose parent has been denied a Federal Direct Parent PLUS loan minus subsidized eligibility based on the student's academic level. The award amount for graduate students is up to $20,500. An origination fee of up to 1.073 percent of the loan amount may be deducted up front from the funds. Repayment begins after the student ceases to be enrolled at least half-time. Loans plus other aid cannot exceed the estimated cost of an education.

This program offers additional federal loan funds for graduate students or parents of dependent, undergraduate students (including biological or adoptive parents and legal guardians). For graduate borrowers, loans disbursed are placed in deferment and repayment does not begin until six months after the student is no longer enrolled on at least a half-time basis. Parent borrowers may begin repayment 60 days after the loan is fully disbursed to their student's account or request a deferment while the student is enrolled on at least a half-time basis.

Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.  For more information visit the U.S. Department of Education website. Note: A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent, and as a grad PLUS loan when made to a graduate or professional student.

Eligibility

The U.S. Department of Education makes Direct PLUS Loans to eligible parents and graduate or professional students through schools participating in the Direct Loan Program.  Note: Before applying, make sure you or your child have already filled out the federal FAFSA form. (Credit Approval Required). A request for a Direct PLUS Loan must be completed at StudentAid.gov for each award year the loans are desired and for each individual loan within an award year. Approval is based on credit. The student for whom the loan is borrowed must be enrolled on at least a half-time basis for the period in which the loan is borrowed. Post-baccalaureate students are not eligible for this loan.

Award Amount

Graduate students or parents may borrow up to the cost of education minus available financial aid, including scholarships, grants, other loans, and student employment for which the student is eligible for each award year. An origination fee may be deducted up front from the funds. Repayment begins 60 days after the last disbursement of the loan unless the borrower obtains a forbearance or deferment. Re-apply for each loan as needed by completing step 1 only.

Complete These Steps:

Step 1: Complete an online PLUS Request - StudentAid.gov/plus-app
Step 2: If credit-approved, complete an online Federal Direct PLUS Loan Master Promissory Note (eMPN) - StudentAid.gov/mpn
Step 3: An online Entrance Counseling Session for:

Graduate student borrowers (Post-Baccalaureate programs are not eligible) - StudentAid.gov/entrance-counseling

Parent borrowers who have been denied and are later approved by obtaining an endorser or an appeal to the U.S Department of Education by documenting extenuating circumstances related to their adverse credit history - StudentAid.gov/counseling-selection

Conditional Additional Step If PLUS Loan is Approved by and Endorser or Appeal: Online PLUS Credit Counseling

Denial Information and Additional Options 

Per federal regulations, if parents of a dependent undergraduate student are denied a Federal Direct PLUS Loan due to adverse credit history, SAIC will automatically award additional Federal Direct Unsubsidized Stafford Loan (up to $4,000 for freshmen/sophomores or up to $5,000 for juniors/seniors) to the student. The parent borrower may choose to appeal the credit decision with the Department of Education or pursue a creditworthy endorser. If the Federal Direct PLUS Loan is then approved, the additional Federal Direct Unsubsidized Stafford Loan may be reversed/canceled. If approved by these options, remember to complete Step 3 in the Federal Direct PLUS process above.

A denial of your Federal Direct PLUS Loan application may not be the end of your eligibility to borrow a Federal Direct PLUS Loan. You are able to continue to pursue your eligibility through the following three options:

1. Request your credit decision to be reviewed/evaluated by a Direct Loan Origination Center Staff Person.
When borrowers first apply for a Federal Direct PLUS loan, an automated credit check is conducted. Sometimes a staff person at the Direct Loan Origination Center can review the decision by a phone request to consider approval by conducting a deeper inquiry and rule out some less significant listings that are considered adverse. Call the Federal Loan Origination Center at 800.433.3243 to request this review and discuss options.

2. Resubmit your application with an eligible credit-worthy endorser (co-signer).
You may add an endorser to your Federal Direct PLUS Loan application. An endorser is someone who does not have an adverse credit history and agrees to repay the loan if primary borrower does not repay it. Please contact the Federal Loan Origination Center at 800.433.3243 for assistance with the endorser process.

3. Submit a request for an appeal of your PLUS Loan credit decision with the US Department of Education if you believe there are documented extenuating circumstances not reflected in your credit history.

Call the Federal Loan Origination Center at 800.433.3243 or

Log in to StudentAid.gov

Select the Document Extenuating Circumstances link under the PLUS Loan Process section on the menu on the left side of the page.

Follow the instructions provided to complete the appeal process.

After completing your request for an appeal online, you should receive a call from a representative at the Federal Loan Origination Center within three business days to discuss your request. If you do not receive a call, you may contact the Federal Loan Origination Center directly to discuss the status of your request.

If you qualify for a Federal Direct PLUS loan by obtaining an endorser or by documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history you'll also be required to complete PLUS counseling before you can receive a Direct PLUS Loan.

If you apply for a Direct PLUS Loan and are notified that you have an adverse credit history, the U.S. Department of Education will provide you with detailed information on the options for qualifying by obtaining an endorser or submitting documentation of extenuating circumstances, along with instructions on how to complete the required PLUS counseling.

Due to federal and state legislation, loan terms, interest rates and conditions are subject to change.

Questions? Contact a SFS Advisor at 312.629.6600 or email us at saic.sfs@saic.edu.

Private education loans are offered by private lenders and are available to students to assist with their educational and living expenses in addition to the Federal Stafford, and PLUS loans. These loans should only be used as a final choice and are not recommended to students and families unless the Federal PLUS is not an option, especially in the case of graduate students. Additional Information that students and families may find helpful in understanding the private loan process may be found at finaid.org.

Eligibility
Any student applying for a private educational loan must first complete a separate application and pass a credit approval with their chosen lender. Private educational loans will be included as a resource in your financial aid package.

Award Amount
Students may borrow up to the estimated cost of their education minus other aid.

Loans first disbursed prior to October 1, 2019, have different loan fees. More information available at studentaid.gov/interestrates.

What is Loan Proration?

Federal Direct Stafford Loans are offered at the beginning of an academic year and are based on expected full time enrollment. Per federal regulations, institutions are required to prorate loans for graduating undergraduate students when their final period of enrollment is less than a full academic year. This means that graduating undergraduate students who only attend one semester of the academic year will have their Federal Direct Stafford Loans prorated (adjusted) based on enrollment. This most often affects students who graduate in December.

How is it Calculated?

The formula provided by the federal government is below.

*Standard academic year

Do you have these loans on your award letter? If so and you plan to borrow through these loan programs, borrowers need to complete the following steps by the deadlines listed above.

In most cases, loans are awarded for the summer semester (May–August) and fall–spring (August–May). These semesters and dates should be used when asked for a loan period (typically, Federal Direct PLUS and Private) during the application process.

Have a quick question?

Contact us at 312.629.6600 or saic.sfs@saic.edu.

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