Loans for US Citizens

The American University in Bulgaria participates in the William D. Ford Federal Direct Loan Program which offers low-interest loans for US students and parents to help make university education an affordable journey. The lender is the US Department of Education, although the entity you deal with - your loan servicer - can be a private business.

Students attending AUBG are not eligible for any of the grant
programs, such as the Federal Pell Grant or the Teacher Education Assistance for College and Higher Education (TEACH) Grant.

Our mission is to provide educational access and opportunity for all students. We promote participation in higher education by providing programs of assistance to help bridge the gap between the cost of attending the University and the family's own resources. 

AUBG’s school code is G34423.

Eligibility

You must meet the criteria set by the US Department of Education in order to be eligible for US federal loans. The federal loan eligibility criteria are subject to change at the US Department of Education's discretion and are beyond the University's control.  You should check the latest eligibility criteria on the Federal Student Aid website.

The University is authorized to process US Direct loans for students who are:

  • Citizens or permanent residents of the United States (US) and who have a valid US social security number (unless you are from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau). 
  • Be enrolled in an eligible program at AUBG at least 6 credits per semester (half time). Have a high school diploma or recognized equivalent (e.g., GED).
  • Comply with the US Selective Service Registration requirements.  Be in good standing with any previous loans. Not have obtained loan amounts in excess of annual or aggregate loan limits.
  • Be in good academic standing. A student must make satisfactory academic progress (SAP) in accordance with an acceptable SAP policy established by AUBG.

The following students are not eligible to borrow US Direct loans:

  • Students whose program includes study or research for any length of time in the United States.
  • Students who have a study period abroad at an institution which is not certified to receive US Federal Direct funds.  If you are planning to have a study period abroad and want to borrow a US Direct loan, please contact the Student Loan Team at StudentLoanOffice@aubg.edu to ensure that you select an eligible overseas institution.
Loan Types

Direct Subsidized Loan

Direct subsidized loans are for undergraduate students with demonstrated financial need. AUBG will review the results of your Free Application for Federal Student Aid (FAFSA) and determine the amount you can borrow. You are not charged interest while you're in school at least half-time and during grace periods and deferment periods.

Direct Unsubsidized Loan

You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, AUBG will determine the amount you are eligible to borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it is first disbursed even during the time a student is in school and during grace and deferment periods. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.

Direct PLUS Loan

PLUS loans are for the parents of dependent undergraduate students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

Direct PLUS Loan for parents of dependent undergraduate students

Direct Parent PLUS loans are federally guaranteed loans that allow parents to borrow funds to pay for the educational expenses of their dependent undergraduate student. These loans are need based and parents are eligible for this loan if the child is a dependent undergraduate student as defined by the US Department of Education. Parents may borrow up to the total cost of attendance minus any other funding. The program requires the borrower (parents) to pass a simple credit check. Interest begins to accrue when funds are disbursed and repayment begins within 60 days after the loan has been fully disbursed.

Direct Graduate PLUS Loans

The Federal Graduate PLUS Loan is a low interest federally backed student loan, guaranteed by the US Government. Like its undergraduate counterpart, the Graduate PLUS Loan can be used to pay for the total cost of education less any aid you've already been awarded. Also like the undergraduate version, eligibility for the Graduate PLUS Loan is largely dependent on the borrower's credit rating and history, as opposed to the purely financial need-based subsidized loan.

Loan Amounts

Undergraduate Students

Direct Subsidized Direct Unsubsidized Subsidized & Unsubsidized Loan
Dependent Undergraduate 1st year $3,500 $2,000 $5,500
Dependent Undergraduate 2nd year $4,500 $2,000 $6,500
Dependent Undergraduate 3rd year and beyond $5,500 $2,000 $7,500
Independent Undergraduate 1st year $3,500 $6,000 $9,500
Independent Undergraduate 2nd year $4,500 $6,000 $10,500

Independent Undergraduate 3rd year and beyond

$5,500 $7,000 $12,500

Parent PLUS Loan is available for dependent undergraduate students. It can cover the total amount remaining after all other aid/loans have been deducted from COA.

Aggregate Loan Limit

Direct Subsidized Loan Direct Unsubsidized Loan Subsidized and Unsubsidized Loans
Dependent Undergraduates $23,000 $8,000 $31,000
Independent Undergraduates $23,000 $34,500 $57,500

Origination Fee

Direct Subsidized Loan:
1.066% for loans first disbursed on or after October 1, 2017 and before October 1, 2018.
1.062% for loans first disbursed on or after October 1, 2018 and before October 1, 2019.

Direct Unsubsidized Loan:
1.066% for loans first disbursed on or after October 1, 2017 and before October 1, 2018.
1.062% for loans first disbursed on or after October 1, 2018 and before October 1, 2019.

Parent PLUS Loan
4.264% for loans first disbursed on or after October 1, 2017 and before October 1, 2018.
4.248% for loans first disbursed on or after October 1, 2018 and before October 1, 2019.

Interest Rate

Direct Subsidized Loan:
4.45% for loans first disbursed on or after July 1, 2017 and prior to July 1, 2018.
5.05% for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.

Direct Unsubsidized Loan:
4.45% for loans first disbursed on or after July 1, 2017 and prior to July 1, 2018.
5.05% for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.

Parent PLUS Loan:
7.00% for loans first disbursed on or after July 1, 2017 and prior to July 1, 2018.
7.60% for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.

Graduate Students

Direct Unsubsidized Loan Direct PLUS Loan
Maximum amount per year $20,500 Total amount remaining after all other aid/loans have been deducted from COA
Aggregate Loan Limit $138,500 (not more than $65,500 of this may be previous Direct Subsidized Loans) No limit
Origination Fee

1.066% for loans first disbursed on or after October 1, 2017 and before October 1, 2018.

1.062% for loans first disbursed on or after October 1, 2018 and before October 1, 2019.

4.264% for loans first disbursed on or after October 1, 2017 and before October 1, 2018.

4.248% for loans first disbursed on or after October 1, 2018 and before October 1, 2019.

Interest Rate

6.00% for loans first disbursed on or after July 1, 2017 and prior to July 1, 2018.

6.60% for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.

7.00% for loans first disbursed on or after July 1, 2017 and prior to July 1, 2018.

7.60% for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.

* Origination fees and interest rates are subject to change. For the latest information on interest rates and fees, please see the Federal Student Aid website

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