Most students take out loans to help pay a portion of their school bill. Weigh your options to make sure you can manage the loans you borrow.
Refer to your financial aid award to see what loans you’re eligible to borrow. On your award, the category “PLUS/Private Loan eligibility” is the suggested amount your parent can borrow from Direct PLUS or that you may pursue through a private loan.
Which loan is best for you?
Compare the educational loan programs to find the best loan based on your eligibility.
|Loan type||Borrower||Fees||Make payments while in school?||Interest Rate 2019-2020||Repayment|
|Direct Subsidized Loans||Student||1.062%||No||4.53% fixed||Up to 10 years|
|Direct Unsubsidized Loans||Student||1.062%||Interest accrues. Optional in-school payment.||4.53% fixed||Up to 10 years|
|Direct Plus Loan||Parent||4.248%||Yes||7.08% fixed||Up to 10 years|
|Private Loans||Student (often requires cosigner)||Varies||Interest accrues. Some require interest payments while in school.||Varies||Varies (10+ years)|
While each student will need to compare the loans to see what his or her best options are, we would first recommend the Direct Subsidized Loans, and then Direct Unsubsidized Loans before considering Private and or Parent Loan options.
What’s the average student loan debt?
The average student loan debt of Multnomah borrowers who started as first-time undergraduate students and who graduated between July 1, 2018, and June 30, 2019, was $38,286. (About 73% of graduates from the class of 2019 borrowed a student loan.) Assuming a 6.8% interest rate and 10 years to repay their loans, average CAS student borrowers will make monthly loan payments of about $439. Multnomah’s most recent cohort default rate was 7.4% compared to the national cohort default rate of 10.1%.
How much should you borrow?
It’s important to avoid borrowing more than you’ll be able to repay after graduation. A reasonable monthly student loan payment would be 8-10% of your monthly income.
Take a look at this chart based on a 10-year repayment period to see what your monthly payments could look like. Payments reflect a 6.8% interest rate.
Sample loan repayment:
|Amount Borrowed||Estimated Monthly Payment|
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Multnomah University offers academic scholarships to students with a GPA of 3.0 and above.
Continue your journey with Multnomah University.
We offer a continuation scholarship for students that graduated from any one of our undergraduate programs (2009 or later).
Percent of undergraduate students receive MU institutional aid.
MU funds over $3,000,000 in student aid every year.
Nearly every student at MU receives financial aid
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