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Financial Aid

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 and deferments. (There has been a temporary elimination of the interest subsidy during the six month grace period effective on new Direct Stafford loans for which the 1st disbursement is made on or after July 1, 2012, and before July 1, 2014.)

Federal Student Aid Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013

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

Academic Year

Loan Type

Interest Rate

Undergraduate (CAS) Students

2013-14*

Subsidized and Unsubsidized

3.86% fixed

2012-13

Subsidized

3.4% fixed

Unsubsidized

6.8% fixed

Graduate and Law Students

2013-14*

Unsubsidized

5.41% fixed

2012-13

Unsubsidized

6.8% fixed

 *Academic Year 2013-14 refers only to loans with a first disbursement date of July 1, 2013 or later.

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 $0 $20,500

Fees and Disbursements

For all Direct Sub/Unsub Loans for which the earliest disbursement date is on or after July 1, 2012, the origination fee is 1.0%.

For all Direct Sub/Unsub Loans for which the earliest disbursement date is on or after July 1, 2013, the origination fee is 1.051%.

For all Direct Sub/Unsub Loans for which the earliest disbursement date is on or after December 1, 2013 and before October 1, 2014, the origination fee is 1.072%.

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 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 your servicer. For information about your servicer, please visit NSLDS.

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