When Investing in a Brighter Future Requires Borrowing Funds

Student Loans Defined

Similar to the type of loan you might take out to buy a home, a student loan is money you
borrow and must pay back with interest. There are two types of student loans: federal student loans and private student loans.

Federal Loans for Students

These loans are offered by the federal government. Their conditions and terms are legally set. Benefits include fixed interest rates and repayment plans that start after graduation and can be based on income.

Private Loans for Students

State-based or state-affiliated organizations, banks and credit unions offer private student loans. The lender sets the conditions and terms. Compared to federal student loans, private student loans are typically more expensive.i

Learn more about the differences between federal student loans and private student loans in this chart.

Types of Student Loans

Type of Student Loan Federal Direct Subsidized Federal Direct Unsubsidized Federal Direct Parent Plus Federal Direct Consolidation Private
Who Can Apply Students with Financial Need Students without Financial Need Parents of Dependent Students Students Students
Amounts $3,500 to $5,500 per yearii $2,000 to $12,500 per yearii Training Costs Not Covered by Financial Aidiii Total of All Federal Student Loans Combinediv Varies
Fees 1.062%* 1.062%* 4.248%*v No Application Feeiv Varies
Interest Fixed Rate
Fixed Rate
Fixed Rate
Fixed Rate Weighted Average of Rates on Consolidated Loansii Varies
Repayment Schedule Starts after Graduation, Leaving School or Changing to Half-Time Enrollmenti Starts after Graduation, Leaving School or Changing to Half-Time Enrollmenti Starts after Graduation, Leaving School or Changing to Half-Time Enrollmenti Starts after Graduation, Leaving School or Changing to  Half-Time Enrollmenti Variesi

*Fee for Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2018 and before October 1, 2019.6 ******

*Fee for Direct PLUS Loans with a first disbursement date on or after October 1, 2018 and before October 1, 2019.5 *****

*Interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS loans first disbursed on or after July 1, 2018 and before July 1, 2019.

Student Loan Application Process

Complete the Free Application for Federal Student Aid (FAFSA) form. Federal student loans may be included in the financial aid offer RSI sends you. Our Financial Aid Advisors will educate you on how to accept part or all of the loan.iii

Visit our How to Apply for Financial Aid page to learn more about applying for FAFSA, or call us for additional details on the process of getting federal or private student loans.

Call us at (888)-671-5803..

Student Loan Help

  • Why should I take out federal student loans?

    Federal student loans offer many benefits over private student loans:

    • Lower, fixed interest rates.
    • No credit check or cosigner needed for most federal student loans.
    • Your repayment plan won’t start until after graduation.
    • The government may pay interest on need-based loans while you’re in school.
    • Flexible repayment and deferment plans.
    • Loan forgiveness for graduates in some fields under certain conditions
  • What do I need to know about taking out federal student loans?

    A. The most important fact to know about taking out a federal student loan is that it’s a legal obligation. You will be responsible for repaying what you borrow with interest. So, borrow

    • Compare the cost of your education or loan to starting salaries for your chosen
    • Keep track of the amounts of your loans.
    • Make sure you understand the terms of your legal obligations under the loan
    • Pay your loan installments on time.
    • Communicate routinely with your loan servicers, keeping them up-to-date on your

    Watch this video to get more tips on responsible borrowing.

  • My parent has another child who is already attending or is going to be attending a different school in the fall. Does my parent have to complete two PLUS loan applications?

    Yes. The funding per each application is tied to the child for which your parent applied. RSI’s Financial Aid Department does not make the credit decisions for the PLUS loans.

Have more questions about federal student loans? Call our Financial Aid Department at (888) 671-5803.


Student Loan Resources

Student Loan Assistance Group

We understand that taking out a student loan is a big responsibility. When managed properly, the rewards of a new skill set and career could be well worth the risks that can come with borrowing money for school. And we’re here to make sure everything goes as smoothly as possible with your student loans.

We take student loan management so seriously, we’ve even created an internal prevention team to make sure students receive the support they need to pay their student loans on time, or defer them if necessary.

RSI’s Student Loan Assistance Group is here to help you after you take out a student loan. Borrowing money for school can be a scary and complicated process, but you don’t have to do it alone.

Additional Sources


Accredited School, ACCSC. Licensed by the Arizona State Board for Private Post Secondary Education. The AOS/MME program is the Associate of Occupational Studies in Mechanical Maintenance Engineering degree program and is not an academic degree. GI Bill® Eligible (check with local campus for specific eligibility). For more information about our programs, please visit our website at: https://www.rsi.edu/about-rsi/regulatory-information/.

GI Bill® is a registered trademark of the U.S. Department of Veterans Affairs (VA). More information about education benefits offered by VA is available at the official U.S. government Web site at www.benefits.va.gov/gibill.

Financial aid and scholarships available to those who qualify. Candidates need to refer to the scholarship information page to determine topic of essay (where applicable) and must meet all regular admissions requirements and be scheduled to start training prior to applying for a scholarship. If a student changes his/her re-enter date, the scholarship award may be forfeited. Scholarships are not transferable and most scholarships cannot be used in conjunction with any other scholarship RSI offers. In most cases, only one award will be given per student. If a student is eligible for multiple scholarships, the scholarship that is most beneficial to the student will be awarded. Scholarships will be distributed incrementally over the entire duration of the program. Scholarship eligibility requires continuous enrollment. Failure to maintain Satisfactory Academic Progress may result in the probation and possible loss of scholarship. Termination from training may also result in the loss of a scholarship, which may increase your tuition obligation to RSI. Tuition charges will be based on the amount reflected on your Enrollment Agreement. See the reverse side of your Enrollment Agreement or the School Catalog for the school’s refund policy.

* According to 2019 IPEDS data RSI has the largest total enrollment of students for all post-secondary schools in the U.S. offering both CIP codes Electromechanical Technology/Electromechanical Engineering and HVAC/R Engineering Technology/Technician.

** https://www.cisa.gov/publication/guidance-essential-critical-infrastructure-workforce

1 Total number of estimated graduates for RSI calculated based on historic data available as of 12/17/21.

iEmployment is expected to grow for Welders, Cutters, Solderers & Brazers (514121) in the US by 47,600 jobs from 2021 to 2031. Employment is expected to grow for Heating, Air Conditioning, and Refrigeration Mechanics and Installers (499021) in the US by 40,100 jobs from 2021 to 2031. Employment is expected to grow for Electricians (472111) in the US by 79,900 jobs from 2021 to 2031. Employment is expected to grow for Plumbers, Pipefitters, and Steamfitters (472152) in the US by 48,600 jobs from 2021 to 2031. Employment is expected to grow for Electrical Power-Line Installers and Repairers (499051) in the US by 11,100 jobs from 2021 to 2031.https://www.careeronestop.org

3 For students who started and completed their training during the 12-month period for which 150% of normal time for completion has elapsed and who attained employment in their field of study as outlined on our annual accreditation report dated July 1, 2021. Refer to the most current Student Right-to-know Information for more details on calculation details https://www.rsi.edu/wp-content/uploads/rsi-right-to-know.pdf

4 AWS Welding Employment Stats: https://weldingworkforcedata.com/ Welding Employment Stats: According to BLS data Arizona employed 5,520 and Phoenix employed 4,060 Welders, Cutters, Solderers, and Brazers (514121). HVAC/R Employment Stats: According to BLS data Arizona employed 10,000 and Phoenix employed 7,860 Heating, Air Conditioning, and Refrigeration Mechanical and Installers (4999021). Electrician Employment Stats: According to BLS data Arizona employed 13,650 and Phoenix employed 10,840 Electricians (472111). Mechanical Engineering Stats: According to BLS data Arizona employed 1,060 and Phoenix area employed 840 Mechanical Engineering Technicians (173027). BLS data is reported through May 2020 http://data.bls.gov/oes.

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