Federal Direct Loan

Federal Direct Loans are part of the William D. Ford Federal Direct Loan Program and are available to students regardless of demonstrated financial need.

Subsidized loans, awarded to students who demonstrate financial need, do not accrue interest during periods of at least half-time enrollment, the six-month grace period, and deferments. Unsubsidized loans accrue interest beginning at the time the loan is disbursed. Interest may be paid during periods of enrollment or may be capitalized and added to the principal amount of the loan when the loan enters repayment.

If you have questions about existing Federal loans, you can review your student loan history through the National Student Loan Data System (NSLDS).

Interest Rates

Grade Level	Loan Type	Academic Year	Interest Rate
Undergraduate (CAS) Students	Subsidized Direct Loan	2011-2012	3.4% fixed
	Unsubsidized Direct Loan	2011-2012	6.8% fixed
Graduate and Law Students	Subsidized and Unsubsidized Direct Loans	2011-2012	6.8% fixed

Loan Amounts

As of July 1, 2008, the maximum amount of Federal Direct Loan funds that a student may borrow for an academic year is as follows.

Dependent students whose parents can borrow Federal Direct PLUS Loan

Borrower’s Academic Level	Base Amount	Additional Unsubsidized
Freshman	$3,500	$2,000
Sophomore	$4,500	$2,000
Junior and Senior	$5,500	$2,000

Dependent students whose parent cannot borrow Federal Direct PLUS Loan & all independent students

Borrower’s Academic Level	Base Amount	Additional Unsubsidized
Freshman	$3,500	$6,000
Sophomore	$4,500	$6,000
Junior and Senior	$5,500	$7,000
Graduate & Law Students	$8,500	$12,000

Fees and Disbursements

For all Direct Sub/Unsub Loans for which the earliest disbursement date is on or after July 1, 2010, the origination fee is changing from 1.5% to 1.0%.

For all Direct Sub/Unsub Loans for which the earliest disbursement date is on or after July 1, 2010, the up-front interest rebate is changing from 1.0% to 0.5%.

Be aware of loan fees when determining the net disbursement amount (principal minus fees).

Federal Direct Loan funds are divided evenly over your academic year. We will notify you when loan funds have been disbursed to your student account.

Processing

Process your 2011-12 Federal Direct Loans.

Returning loan funds to your lender

We will return loan funds if your written request is received within 14 days after the disbursement notification has been sent to you.

After this time, you can return Direct Loan funds by check to:

U.S. Department of Education
Attention: Payment Center
PO Box 530260
Atlanta, GA 30353-0260

To ensure that the payment is properly credited, you will need to include a cover letter stating whether the funds are for a loan payment or for canceling (inactivating) a loan. This note should indicate which loan(s) the returned funds should be applied to, and in what amounts (if repayment is split between loans).

A borrower has up to 120 days after the disbursement date to return Direct Loan funds without being responsible for paying fees and any accrued interest on the amount canceled.

Estimating your monthly loan payments

The minimum monthly payment is $50 and the maximum repayment period is 10 years. Options of standard, graduated, or income-sensitive repayment schedules will be offered to new borrowers as long as minimum annual payments and maximum time periods are met. However, extended repayment plans (up to 25 years) are available for borrowers with federal education debt exceeding $30,000. In addition, provisions are made for certain deferment and forbearance options.

The following table is based on a standard 10 year repayment plan. Use this table to estimate the monthly payment amount for your Federal Direct Loan(s).

TOTAL AMOUNT BORROWED	INTEREST RATE
	5.00%	6.00%	6.80%	7.50%	8.00%	8.50%
3,500.00	50.00	50.00	50.00	50.00	50.00	50.00
4,500.00	50.00	50.00	51.79	53.42	54.60	55.79
5,500.00	58.34	61.06	63.29	65.29	66.73	68.19
8,500.00	90.16	94.37	97.82	100.90	103.13	105.39
12,000.00	127.28	133.22	138.10	142.44	145.59	148.78
16,000.00	169.70	177.63	184.13	189.92	194.12	198.38
20,500.00	217.43	227.59	235.91	243.34	248.72	254.17
25,000.00	265.16	277.55	287.70	296.75	303.32	309.96
30,000.00	318.20	333.06	345.24	356.11	363.98	371.96
35,000.00	371.23	388.57	402.78	415.46	424.65	433.95
45,000.00	477.29	499.59	517.86	534.16	545.97	557.94