Student loans fall into two general categories. 

Federal Loans 

Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education. 

Direct Subsidized Loans are available to undergraduate students with financial need. The school determines the amount you can borrow, and the amount may not exceed your financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are in school at least half-time, for the first six months after you leave school (referred to as a grace period), and during a period of deferment (a postponement of loan payments). 

Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. The school determines the amount you can borrow based on your cost of attendance and the other financial aid you receive. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. 

2024–25 Academic Year 

Loan Type

Interest Rate

First Disbursed on or after July 1, 2024 and before July 1, 2025

FeesAnnual Limit*Repayment Period
Federal Direct Subsidized Student Loan 6.53% fixed – charged after enrollment ceases 1.057% Fr – $3,500 
So – $4,500 
Jr  –  $5,500 
Sr – $5,500 

Begins 6 months after the borrower leaves school.  

Several repayment options available. Generally, 10 to 25 years to repay the loan, depending on the repayment plan selected. 

Federal Direct Unsubsidized Student Loan 6.53% fixed – accrues during all periods1.057% 

Dependent Students: 
Fr -$5,500 
So -$6,500 
Jr  -$7,500 
Sr -$7,500 

Independent Students: 
Fr -$9,500 
So -$10,500 
Jr -$12,500 
Sr -$12,500 

Begins 6 months after the borrower leaves school.  

Several repayment options available. Generally, 10 to 25 years to repay the loan, depending on the repayment plan selected. 

 *Includes subsidized and unsubsidized Federal Direct loans.

Application Process

To request a subsidized or unsubsidized federal loan, you must submit a valid 2024–25 Free Application for Federal Student Aid (FAFSA) and you must be meeting Undergraduate Financial Aid Satisfactory Academic Progress (UFA SAP). If you have not submitted the FAFSA, complete one at studentaid.gov.  

Additionally, you will also need to complete a Federal Loan Request Form available in the Form Library for the academic year.

Note: After submitting the Federal Loan Request Form, the Financial Aid Office must confirm the information on your FAFSA is accurate before federal loan(s) can be processed. If we are unable to confirm and process federal loan eligibility before the end of the academic year, federal loan(s) cannot be awarded. 

2024–25 Deadline to confirm and process federal loan eligibility:

 Fall deadline (for fall-only loans): 12/20/2024 
Spring deadline (for spring-only and full-year loans): 05/15/2025 

Private Loans

Loan Type Interest Rate Fees Annual Limit* Repayment Period 
Princeton Subsidized Loan 5% fixed – charged during repayment None Amount determined by the calculated need and family contribution 

Begins 9 months after borrower leaves school – maximum 10-year repayment term. 

Review loan terms for various loan amounts: 

Princeton Unsubsidized Loan  

Only available to students ineligible for federal loans 

5% fixed – charged during all periods  NoneAmount determined by the calculated need and family contribution 

Begins 9 months after borrower leaves school – maximum 10-year repayment term.  

Review loan terms for various loan amounts: 

Alternative Loans Varies by lender – may be fixed or variable  Varies by lender – may range from 0 to 11% of the loan principal Cost of attendance minus student aid Varies by lender – typically begins 6 months after borrower leaves school and maximum 10-year repayment term  

Alternative Loans 

Alternative loans are available from a variety of lenders outside the University. These loans are usually credit-based and are often used as a last resort after other financing options have been considered. Although terms and rates vary among lenders, in many cases a Federal Direct Student Loan may provide you with more beneficial terms and conditions than a private loan. The financial aid office does not recommend specific lenders, as described in our code of conduct. 

Application Process 

To apply for the Princeton Subsidized Loan, complete the Princeton Student Loan Request Form in the Forms Library and upload it to your student portal. We will confirm your eligibility.

To apply for the Princeton Unsubsidized Loan, email us at faoffice@princeton.edu. We will confirm your eligibility and send the application. The completed application can then be uploaded to your student portal. 

To apply for an alternative loan, research your alternative loan options and apply according to the lender’s instructions. 

Deadline to Originate Princeton Loans 

All loans must be originated by the last day of the academic term (last day of fall/spring final examinations) as listed in the University’s academic calendar.

  • Fall-only loan: 12/20/2024
  • Spring-only and fully-year loan: 05/15/2025
  • Summer: to be determined

Princeton's Federal Cohort Default Rate

The following table shows Princeton’s Cohort Default Rates for federal loans on a three-year period. Data includes the percentage of borrowers who entered repayment on Direct Loan Program loans during a federal fiscal year (October 1–September 30) and default before the end of the second following fiscal year.

Rates

FY2020FY2019FY2018
Enrollment Figures8,5328,7208,593
Number of Borrowers in Repayment108114127
Percentage Calculation1.27%1.31%1.48%
Number of Borrowers in Default001
Default Rate0.0%0.0%0.7%
National Default Percentage0.0%2.3%7.3%

Rates can also be found at NSLDS Official Cohort Default Rate Search for Schools. Use OPEID 002627 for Princeton University.

Please contact the Financial Aid Office prior to applying for a student loan.