Loans
Your guide to loans and debt management.
What to Know Before You Borrow
A loan is money you borrow and must repay with interest under varying terms and conditions.
If you decide to take out a loan, make sure you understand who is making (i.e. offering) the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Federal student loans are available to most students regardless of income and provide a range of repayment options.
While it is important to be cautious of irresponsible borrowing, loans are considered an integral part of a student’s Financial Aid package. Please carefully review the different types of loans available below and consider each one as a viable option for financing a college education.
Federal Direct Loans
The U.S. Department of Education’s federal student loan program is called the William D. Ford Federal Direct Loan (i.e. Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. Eligible students will be offered Direct Subsidized and/or Direct Unsubsidized Loans upon completion of the FAFSA. Graduate students are eligible for Direct Unsubsidized Loans only.
Concordia students receiving Direct Loans must complete:
- Entrance Counseling (first-time borrowers)
- Master Promissory Note (MPN)
Explore each loan type below to see how federal loans work and which options may apply to you.
Federal Direct PLUS Loan for Parents/Guardians
Parent PLUS Loans allow parents of dependent undergraduate students to borrow funds to help cover costs not met by other financial aid. These loans require a credit check, and parents must apply using their own FSA ID.
Direct PLUS Loans have an annual loan limit (i.e. the maximum amount a parent can borrow each academic year) and an aggregate loan limit (i.e. the maximum loan amount the parent can borrow for each student’s undergraduate study). The annual loan limit is $20,000 per academic year. The aggregate loan limit is $65,000 per student over the course of student’s undergraduate study (i.e. 4 years) regardless of any amounts repaid, forgiven, or discharged.
If a Parent PLUS Loan is denied, additional Unsubsidized Loan eligibility may be available to the student. Contact the Financial Aid Office to learn more.
Private and Alternative Loans
Private or alternative loans come from banks, credit unions, and other lenders and can help fill remaining gaps in your financial aid package. Since these loans vary significantly, students should compare:
- Interest rates (fixed vs. variable)
- Fees and repayment terms
- Total borrowing limits
- Credit requirements
Private loans should generally be used after federal loan options have been fully explored. Students in certain certificate or credential programs may be eligible for private loans even if federal aid is not available.
Debt Management
The U.S. Department of Education provides tools to help students track federal loans, explore repayment options, and prepare for payments after leaving school.
The resources below walk you through exit counseling, repayment strategies, consolidation, deferment and forbearance, loan forgiveness programs, and more. These tools are designed to help you confidently manage your student loan debt and plan for financial success after graduation.
Program Overview
Exit Counseling
You must complete Exit Counseling when you leave school, graduate, or drop below half-time enrollment. The purpose of Exit Counseling is to ensure you understand your student loan obligations and are prepared for repayment.
You’ll learn about what your federal student loan payments will look like after school. The Department of Education will also recommend a repayment strategy that best suits your future plans and goals. Complete Exit Counseling online here
Know What You Owe
You can view all of your federal student loans by logging in to the Federal Student Aid website with your FSA ID. This database includes every federal loan you’ve received at any college or university, along with your loan servicer’s contact information.
Note: Private loans are not listed here. Parent PLUS Loans appear under the parent’s FSA ID.
Making Payments
Federal Loans
Federal loan payments are made directly to your loan servicer, not your university. Log in to your Federal Student Aid account to find your servicer and view your repayment options. You can also use the Department of Education’s Repayment Calculator to preview monthly payments and compare plans before committing to one.
Private Loans
Private loan payments go to the lender you borrowed from. If you have multiple private loans, you’ll make separate payments unless you consolidate. Contact your lender for repayment terms and instructions. If you’re having difficulty making payments, reach out immediately — missing payments can lead to delinquency and harm your credit.
Loan Consolidation
Federal Loans
Consolidation lets you combine multiple federal loans into one new loan with one servicer and one monthly payment. It may lower your monthly payment by extending your repayment term, but it can also increase the total amount of interest you pay. Review the pros and cons carefully before applying.
Private Loans
Private loans cannot be consolidated with federal loans, but you may refinance multiple private loans into one new private loan. Your new rate will depend on your credit, income, and lender requirements. Compare offers, understand whether the rate is fixed or variable, and weigh both benefits and risks before refinancing.
Understanding Default
Default occurs when you fail to make payments on your student loan. It can lead to serious consequences, including damage to your credit, wage garnishment, and loss of eligibility for future aid. Visit the Department of Education to learn what default means, how to avoid it, and what to do if you fall behind.
Loan Deferment | Forbearance
Federal Loans
Deferment or forbearance lets you temporarily pause or reduce your federal loan payments if you’re facing financial hardship, unemployment, military service, or other qualifying situations. Visit the Federal Student Aid website for full eligibility details.
Private | Alternative Loans
Private lenders may offer deferment or forbearance, but options vary. Contact your lender as soon as you anticipate payment difficulties — ignoring communication can lead to delinquency. Be open about your situation so the lender can help determine your options.
Loan Forgiveness
Federal Loans
In certain situations, you can have your federal student loans forgiven, canceled, or discharged. Learn more about the types of forgiveness and whether you qualify by clicking here.
Private loans do not qualify for loan forgiveness
Get in Touch
If you have questions about your financial aid package or next steps, our team is here to help.
Financial Aid Office
Grimm Hall North, 2nd Floor
1530 Concordia West
Concordia University Irvine
Irvine, CA 92612
Phone: (949) 214-3066
Email: [email protected]
Fax: (949) 214-3500