Navigating Student Loan Options at the University of Pittsburgh

Planning for college expenses is a crucial part of the application process. Understanding the costs associated with attending the University of Pittsburgh and the various financial aid options available is the first step toward effectively managing these expenses. The "Cost of Attendance" represents the total amount of money an average student needs to pay to attend the university without any financial aid. This includes tuition, room and board, books, and other fees.

The Cost of Attendance at the University of Pittsburgh differs for in-state and out-of-state students, with out-of-state students typically incurring higher costs for tuition and fees. Being an out-of-state public institution, the University of Pittsburgh may be more expensive than if one were an in-state student.

Understanding Financial Aid at the University of Pittsburgh

Financial aid primarily comes in the form of grants, scholarships, and loans. Grants and scholarships are preferable as they do not require repayment.

Grants and Scholarships

It is important to understand how much grant aid students tend to receive. While knowing the percentage of students who receive grant aid is useful, it's equally important to know the average amount of aid disbursed. Fewer students may be getting aid, which could mean students are paying more at the University of Pittsburgh than they would at other similar schools. However, those who do qualify for aid may receive a more substantial award.

The grant dollar amounts include aid from all sources, both federal and institutional. The strength of the University of Pittsburgh's financial aid program can be gauged by examining how they award their own (non-federal) financial aid dollars.

Student Loans

Aside from grants, student loans are another major way to finance college education. Minimizing student debt is ideal, and a school with many students taking out large loans may be a red flag.

Federal Student Loan Options

Federal student loans generally have lower fixed interest rates and more flexible repayment plans compared to private loans. To apply for federal loans, students must complete the Free Application for Federal Student Aid (FAFSA).

These loans can be subsidized or unsubsidized. Subsidized loans do not accrue interest while the student is enrolled at least half-time (and often during a grace period after graduation), as the government covers the interest during these periods. Eligibility for subsidized loans requires demonstrated financial need. Unsubsidized loans, on the other hand, do not have this interest benefit, but there is no requirement to demonstrate financial need.

The University of Pittsburgh participates in the William D. Ford Federal Direct Loan Program exclusively for the Federal Subsidized/Unsubsidized and Federal Graduate PLUS Loans.

Federal Direct Unsubsidized Loans

Students who submit a valid FAFSA and any required verification items will receive notification of their Federal Direct Unsubsidized Loan eligibility. The annual Federal Direct Unsubsidized Loan maximum ranges from $40,500 to $47,167 for medical students, based on the number of months the student is enrolled. Interest accrues during enrollment and deferment periods and must be repaid by the student borrower. While in school, students may choose to make payments on the interest or defer all payments. Federal Direct Unsubsidized loans first disbursed from July 1, 2024, to June 30, 2025, have a fixed interest rate of 8.08%. The rate for loans disbursed starting July 1, 2025, will be determined in May 2025. A loan origination fee is also charged.

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The University of Pittsburgh School of Law will automatically process the Federal Direct Unsubsidized Loan for the full academic term for the maximum eligible amount.

To apply for a Federal Direct Unsubsidized Loan:

Click "Complete Entrance Counseling" and follow the directions for completing the counseling for a graduate/professional student.
After completing the Entrance Counseling, click "Complete Master Promissory Note" and select Subsidized/Unsubsidized MPN.

Federal Direct Graduate PLUS Loans

Students who need to borrow more than the Federal Direct Unsubsidized Loan may also choose to borrow Federal Direct Graduate PLUS Loans. Unlike Federal Direct Unsubsidized Loans, the Graduate PLUS loan requires a credit check. The annual maximum is based on the Cost of Attendance less other financial aid. Interest accrues during enrollment and deferment periods and must be repaid by the student borrower. While in school, students may choose to make payments or defer all payments. Federal Direct Graduate PLUS Loans first disbursed from July 1, 2024, to June 30, 2025, have a fixed interest rate of 9.08%. The rate for loans disbursed starting July 1, 2025, will be determined in May 2025. A loan origination fee is also charged. A six-month grace period after graduation is available before repayment begins.

A continuing Graduate PLUS Loan borrower has borrowed or received funds from the Direct Graduate PLUS Loan program after the 2010-2011 academic year without needing a co-signer.

To apply for a Grad PLUS loan:

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Click "Apply for Aid" and choose the "Apply for Grad PLUS loan" option.

The Department of Education will immediately provide the results of the credit check, and the school will receive notification of the approved application weekly.

Federal Parent PLUS Loan Program

The Federal Parent PLUS Loan Program enables parents with good credit histories to borrow money to pay the education expenses of their children. Upon application, the results of a credit check will be available immediately. If the borrower is credit approved, instructions will be given for completing a Master Promissory Note (MPN) if applicable. If the borrower’s credit is denied, the borrower will be presented with the option of appealing the credit decision, obtaining an endorser, or not pursuing the loan.

Private Student Loan Options

Students can choose to borrow a private loan in place of or in addition to a federal student loan. Private loans are typically made by banks or credit unions. Each lender offers its own terms and conditions, and the interest rate is based on the borrower's credit history. It is important to carefully understand the rates, terms, and conditions of a loan before borrowing. A list of lenders to get started on your private loan search can be found at FastChoice.

Students and their families can borrow additional loan funds to assist in financing any gap that may exist between the cost of education and the amount of financial aid received. These private education loans are provided by commercial lenders and are not supported by state or federal financial aid funds.

Important Considerations for Private Loans

Students should compare interest rates, fees, and repayment options such as deferment and forbearance. Maximum loan amounts, loan terms, borrower qualification, repayment schedules, and interest rates vary among lenders. It is strongly encouraged to complete the Free Application for Federal Student Aid (FAFSA) to be considered for federal and state aid, including Federal Pell grants, Federal Direct Student Loans, and other federally funded campus need and/or merit-based aid. Federal Direct Loans may have terms and conditions that may be more favorable than the terms and conditions of private education loans such as loan forgiveness options for certain professional commitments and loan discharges due to total and permanent disability and death.

Students who decide to borrow private loans to finance their education must complete a Self-Certification Form. The lender will provide this form, including instructions for completion. Students will be asked to provide the Cost of Attendance and the total for Estimated Financial Assistance on the form. Students can view their information by logging on to My Pitt and going to Student Center. Click on View Financial Aid and then on the appropriate financial aid year.

Borrowers have the right to select the private education loan of their choice, provided they are eligible for the loan. Neither the University of Pittsburgh nor the Financial Aid Office endorses, recommends, or promotes any specific lenders or their products. A private education loan is an agreement between the borrower, co-signer (if any), and the lender. Students should begin applying within 90 days of the start of the semester. Students who need to borrow for both the fall and spring semesters are encouraged to complete their loan application for the year instead of taking out a separate loan for each term.

Per the Higher Education Opportunity Act (HEOA) regulations, lenders are required to provide borrowers with a three-business-day right-to-cancel period after the final disclosure of a private student loan. In addition, lenders are required to add an additional three business days for a borrower to receive the final disclosure. In most cases, the disbursement process, which in itself may be another three-day process, will begin on the eighth day.

Additional Funding Options

Additional college funding can come from military involvement, the Peace Corps, and AmeriCorps.

Sallie Mae Loans

These loans are made by Sallie Mae Bank. Uloop is not the creditor for these loans and is compensated by Sallie Mae for the referral of loan customers. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply. Although there is no penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

Calculating Your Net Price

The Net Price is the total cost of attending the University of Pittsburgh minus the total aid given (grants and scholarships). This represents the amount you have to pay to the school out of pocket. A handy chart showing the net price of real students is available to give you a quick, general idea of your annual Net Price. Most schools also have an updated Net Price calculator available.

Expected Family Contribution (EFC)

The US government has developed a standardized way to calculate how much a typical family can afford to pay without help, known as the Expected Family Contribution (EFC). Colleges use this number as a guideline to decide how much aid to give you, but it's just a guideline. Comparing your EFC to the University of Pittsburgh's Net Price can help determine whether the school will cost more than you can typically afford. If the Net Price is higher than the EFC, the school will cost more than you can typically afford.

Additional Resources

A great place to begin your search for grants/scholarships is with your school’s counselor. They will likely have a list of local funders who may have easier application procedures. The University of Pittsburgh, for example, has a database for students to apply for scholarships named PittFundsMe.

Work-Study Programs

Work-study programs are another form of aid where universities and the federal government partner up. If eligible, you are usually allocated a total amount of money over the course of the academic year, or in some cases, all four years in college. You then work at an on-campus or nearby part-time job to get paid those funds. Warning: you are not necessarily guaranteed these funds. In some cases, you will need to search for available work-study jobs at the school you end up attending. You would need to apply and interview-just like you would for any other job search. Also, this money does not go directly to your school. You receive a paycheck for hours worked. If granted, this type of aid can be a win for your resume.

Housing and Dining Options

Housing accommodations range from single rooms to quadruple suites, and room charges vary accordingly. As with housing, there are many dining options for students. Information for various meal plans can be found at Dining Services.

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