Student Loans

An Investment Worth Making

Students in Alumni Plaza

One option available to families to help pay for college is student loans. Though the thought of loans may be scary, they are a common practice when purchasing a new car or paying for a home—items worthy of an investment. You can say the same of a great education!

Get in touch

Phone: 859-233-8239 or 800-872-6798
Fax: 859-281-3650

Old Morrison, 1st Floor
Hours M-F, 8:30 a.m.-5 p.m.

300 North Broadway
Lexington, Kentucky

The Transy peace of mind

But when you choose Transy, you can be confident you’ll be able to pay those loans back. Because our graduates have such success finding well-paying jobs, our loan default rate is far lower than other private or public colleges.

Source: U.S. Department of Education

Types of Loans 

Federal Direct Student Loan

This is also known as the Stafford Loan, and it comes in two forms:

  • Subsidized—These are awarded based on financial need, and the federal government pays the interest while you’re enrolled in school. You don’t have to pay these back until after you leave school.
  • Unsubsidized—These are not need-based, and the federal government does not subsidize the interest. You will be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized. You don’t need to repay these until after you leave school.

Your maximum loan eligibility depends upon class standing:

  • Freshmen—$5,500 ($3,500 of which can be subsidized)
  • Sophomore—$6,500 ($4,500 of which can be subsidized)
  • Junior—$7,500 ($5,500 of which can be subsidized)
  • Senior—$7,500 ($5,500 of which can be subsidized)

The interest rate for Federal Direct Student Loans for the 2024-25 year is 6.53 percent. 

Federal Direct Parent (PLUS) Loans

The Federal Direct Parent (PLUS) Loan allows parents to borrow up to the cost of a student’s education minus any other financial aid the student is receiving. The interest rate for the 2024-25 year is 9.08 percent. Parents have the option of repaying the loan either 60 days after the loan is fully disbursed or waiting until six months after the student leaves school or drops below half-time enrollment.

Private Loans

A private student loan (also referred to as an alternative loan) is not a federal student loan, but one through a private bank or other lending institution.

Generally, private loans have interest rates, repayment terms and deferment options that are less favorable than those of the Federal Direct Student Loan program.

We strongly encourage you to review each of the lender’s information to determine which benefits and terms are best for you. Take into consideration repayment terms, interest rates, and deferment options before choosing a private loan. Some lenders may require a co-signer for credit reasons. Some other things to consider when comparing the PLUS Loan to Private Education Loans.

Questions regarding a particular lender’s private loan program should be directed to that lender.

Steps to take before applying for a private loan

  1. Complete a FAFSA so we can determine your eligibility for federal aid. If there is a reason you are unable to complete the FAFSA, please contact our office.
  2. Consult The Office of Financial Aid to determine if you have exhausted your federal financial aid eligibility for the year.
  3. If you have exhausted your eligibility or need additional funding, you may then want to consider a private loan. Find more information about private student loans.

Take a look at these videos to learn more about student loans.