Reducing the Cost of Your Loan

Return Unwanted Loan Funds

If you realize that you have over borrowed, you will have the option of returning loan funds to the University, and the Financial Aid Office will return these funds to your lender on your behalf.  You will receive email reminders from the Financial Aid Office with information about the process and the deadline to return loans each semester.  If you miss the deadline, you can still send money back to the lender directly. For more information on the loan return process, please contact the Financial Aid Office.

Avoid Interest Capitalization

The Federal Direct Unsubsidized Loan, the Direct Graduate PLUS loan, and private loans accrue interest daily while you are enrolled in school. Most students are not required to make any payments towards their loans unless their enrollment status falls below half time. During this period, interest continues accruing and will be added back to the principal loan balance after graduation; this is called capitalization. Keep in mind that your loans will continue accruing interest after graduation. If you let unpaid interest capitalize, when you enter repayment, you will be paying interest on interest. If you can afford to make interest-only payments while in school, you will be reducing the total cost of your loan. Please contact your loan servicer or lender for more information.

Prepay Your Loan

Students are eligible to make early payments on their educational loans without facing a penalty. If you find that you have some extra money available to you, think about starting to repay your loan early. This will only help you reduce the total cost of your loan.