This program consists of low-interest subsidized and unsubsidized loans financed by the federal government.

Loans are available to undergraduate and graduate students who are U.S. citizens or eligible noncitizens.

Loan repayment begins six months after graduation, or when enrollment drops below half-time.

All students applying for Federal Loans must have completed a Free Application for Federal Student Aid (FAFSA).

In addition, students must also select a lender and complete a Master Promissory Note. Applicants must be enrolled at least half-time.

Funded by the federal government, Federal Subsidized Loans award: $3,500 per academic year to first-year undergraduate students; $4,500 to second-year undergraduate students; $5,500 per academic year for years three through five; and $8,500 per academic year for graduate students.

The total Federal Subsidized Loan debt students can have outstanding as an undergraduate is $23,000. The total for graduate study is $65,500, including any loans made at the undergraduate level.

For undergraduate students, interest is fixed at 4.5 percent for loans made after July 1, 2010. Graduate students have a fixed rate of 6.8 percent. A net origination fee of 0.5 percent will be deducted proportionately from each disbursement students receive.*

Payment of the loan will be made in two disbursements. Interest is paid by the federal government during school-authorized deferments.

Repayment begins six months after the earliest of the following: the student drops below half-time status; the student graduates; or the student terminates study. All students who have not previously received Federal Stafford Loans must complete a loan entrance interview prior to the release of loan funds.

* The origination fee on Direct Subsidized and Unsubsidized Loans is 1.5 percent. An upfront rebate of one percent is applied, which reduces the fee paid at origination to 0.5 percent. If the first 12 monthly payments are not made on time, the rebate amount will be added to the balance of the loan.

These loans are available without regard to need.

For independent students, annual loan limits are $6,000 per academic year for undergraduates in years one and two, and $7,000 per academic year for years three through five, with a total aggregate limit of $57,500, including any Federal Subsidized Loans or SLS Loans received.

Dependent students are eligible for $2,000 per academic year.

Graduate students may borrow up to $12,000 per academic year, with a cumulative limit of $138,500, including any undergraduate Direct Loans.

You must repay interest that accumulates during school, but it can be deferred and added to your principal balance.

Additional unsubsidized loans are also available to dependent students who do not qualify for a full subsidized Federal Loan. The loan limits are the same as the subsidized Federal Direct Loan, less the amount of any subsidized loan received. The cumulative limit is $23,000, including any subsidzied loan received.

The interest rate is fixed at 6.8 percent. An origination fee of up to 0.5 percent and a default fee of 1 percent may be deducted from each disbursement.*

Repayment of principal begins six months after the student graduates, leaves school or ceases to be enrolled at least half-time. Interest payments begin at disbursement and must be paid monthly or quarterly unless the student requests that the interest be added to the principal (capitalized). All students applying for Direct Unsubsidized Loans must first complete a Free Application for Federal Student Aid (FAFSA).

All first-year students who have not previously received Federal Direct Unsubsidized Loans must complete a loan entrance interview prior to the release of any loan funds.

* The origination fee on Direct Subsidized and Unsubsidized Loans is 1.5 percent. An upfront rebate of one percent is applied, which reduces the fee paid at origination to 0.5 percent. If the first 12 monthly payments are not made on time, the rebate amount will be added to the balance of the loan.

Basic Subsidized

Unsubsidized

Additional Unsubsidized
Independent students and Dependents whose parents cannot borrow a PLUS Loan.

These loans are available to students who are enrolled in a graduate program and who have borrowed the maximum amounts of subsidized and unsubsidized Direct Loans for the year. Students must complete a Free Application for Federal Student Aid (FAFSA) and meet credit eligibility requirements.

The interest rate is fixed at 7.9 percent and although interest begins to accrue at disbursement, payment may be postponed while the student is in school.

An origination fee of four percent will be deducted from each disbursement.

The borrower may request an amount up to the cost of education minus other financial aid.

Although repayment begins within 60 days of full disbursement, in-school deferments are available. The student must have no adverse credit history. There are no aggregate limits.

All students who have not previously received a Grad Plus Loan must complete a loan entrance interview prior to the release of loan funds. Students should take subsidized and unsubsidized Direct Loans before considering a Grad PLUS Loan.

Funded by the federal government, these loans are designed to help parents meet the cost of education.

Demonstrated financial need is not a determining factor in receiving a PLUS Loan; however, the parent must undergo a credit check and have no adverse credit history as defined by regulation. Parents may be eligible to borrow up to the cost of their dependent undergraduate student’s education for the academic year less any other financial received.

The interest is fixed at 7.9 percent. Repayment starts within 60 days of disbursement. Parents have up to 10 years to repay the loan and now have the option of defering repayment until the student graduates or leaves school.

There is a four percent origination fee for PLUS loans. This premium must be deducted proportionately from each disbursement you receive. Payment of the loan will be made in two disbursements.

A dependent student may receive Direct Unsubsidized Loan proceeds up to the yearly limit if the parents are unable to obtain a PLUS Loan.

For students who have received the maximum award amounts under the Federal Family Education Loan Program and require additional funding, other loans are available. Students may request up to the estimated cost of education minus other financial aid received.

These loans are sponsored by banks and private lending institutions. Loan approval is based on the borrower’s creditworthiness and ability to pay the loan rather than calculated need.

The student must be either the applicant or the co-applicant for the loan. A student will need to have another person, such as a parent or guardian as a cosigner.

Interest rates and repayment schedules may vary.

Most lenders offer only variable-rate options with no rate cap. The borrower may pay interest monthly while the student is in school (up to four years).

Some lenders now require interest payments while student is in school; with most lenders, repayment of principal and interest begins within six months of the student's separation from school.

The term of the loan is up to 25 years from the time principal repayment begins.

Guarantee fees of up to six percent of the loan are added directly to the total loan amount. The interest rate varies among lenders.