FEDERAL DIRECT STUDENT LOANS

Standard packaged loan amounts:

First Year

Sophomore

Junior

Senior

 $3,500

 $4,500

$5,500

$5,500

The loan source(s) will vary depending upon the student's federal and institutional eligibility. 


FEDERAL DIRECT LOANS

Types

  • Subsidized (need based)
    • Loan principal is deferred and the government pays the interest on the loan while you are enrolled at least half-time.
  • Unsubsidized (non-need based)
    • Loan principal may be deferred but interest accrues.  If you choose to defer interest, it will be added to the principal of the loan.

Interest Rate & Repayment

  • 4.529% for subsidized and unsubsidized loans after July 1, 2019.
  • Fixed interest rate
  • Fees of 1.059% are deducted from the loan when disbursed to the school. NOTE: Direct Loans that are disbursed for the first time after October 1, 2018 will have an origination fee of 1.062%.
  • Standard ten-year repayment begins six months after graduation, or ceasing to be enrolled at least half-time.  Other repayment options (including Income Contingent/Income-Based/Pay as You Earn) may be available through the servicing agent. 
  • Deferments are granted while you are in college and for graduate or professional study or for economic hardship as defined by the Department of Education.

Maximum Loan Amounts

  • First Year: $3,500
  • Sophomore: $4,500
  • Junior: $5,500
  • Senior: $5,500
  • Graduate Students: $20,500

As of July 1, 2008, students are eligible to request an additional $2,000 of unsubsidized Direct loan.

If a parent is denied the Direct PLUS loan, a student is eligible to borrow additional unsubsidized Direct loan:  $4,000 freshman and sophomore years; $5,000 junior and senior years.

Processing

  • All first-time borrowers will need to complete a Loan Entrance Interview and Direct Master Promissory Note. Both steps can be completed by visiting www.studentloans.gov.

DISCLOSURE STATEMENT

Federal Direct Loan Disclosure Statement