Federal Direct Loan Program

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Federal Direct Loan Program

Types of Loans

Subsidized

The Subsidized loan is a need-based loan on which interest is paid by the federal government during in-school, and deferment periods.  All principal payments are deferred until six months after graduation or a student drops below half-time enrollment.  Any loan borrowed between July 1, 2012 and July 1, 2014 will not have interest deferred during the six-month grace period.  Graduate students are not eligible for the Direct Subsidized Loan.

Unsubsidized

The Unsubsidized loan is a non-need based loan on which interest is not paid by the federal government.  All principal payments are deferred until six months after graduation or a student drops below half-time enrollment.  The student is responsible for interest from the date the loan is disbursed.  Students can choose to make interest payments or ask the lender to add the interest to the principal of the loan for repayment at a later date.

Graduate Student Loans - Additional Information

    Time Limit (SULA):  Any first time borrower will be subject to the new 150% rule provisions.  A new borrower is categorized as anyone who has not received any federal Stafford loan funds prior to July 1, 2013 or anyone who received federal Direct/Stafford loan funds but paid off the balance owed prior to July 1, 2013.  For more information please review the detail of the 150% Announcement.

    Federal Loan Terms 2017-2018

    Origination Fees

    1.069% origination fee for loans with a first disbursement date on or after October 1, 2016.

    Interest rates 2017-2018

    Adjusted annually on July 1st. Current and prior rates.

     

    Subsidized

    Unsubsidized

    Undergraduate

    4.45%

    4.45%

    Graduate

    -

    6%

     

    Annual Loan Limits

    Minimum: $100.00

    Dependent

    Annual Loan Limit

    Maximum Subsidized

    Freshman (0-29.5 Earned Credits)

    $5,500

    $3,500 subsidized

    Sophomore (30-59.5 Earned Credits)

    $6,500

    $4,500 subsidized

    Junior or Senior (60+ Earned Credits)

    $7,500

    $5,500 subsidized

    Independent

    Annual Loan Limit

    Maximum Subsidized

    Freshman (0-29.5 Earned Credits)

    $9,500

    $3,500 subsidized

    Sophomore (30-59.5 Earned Credits)

    $10,500

    $4,500 subsidized

    Junior or Senior (60+ Earned Credits)

    $12,500

    $5,500 subsidized

    Graduate

    $20,500

    -

     Requirements

    • Accept all loans you want to borrow and the amount(s) through Trailhead
    • All first-time borrowers must complete a loan counseling session prior to loan funds being disbursed.
    • Complete a Master Promissory Note (MPN).  Typically the MPN is only required once for each borrower.
    • Must be enrolled at least part-time (6 credits for an undergraduate student; 4.5 credits for a graduate student).

    Repayment Terms

    • Repayment begins six months after graduation or dropping below half-time enrolment.
    • Minimum payment: $50/month, maximum of ten years to repay. 
    • Complete terms of the loan can be found on the Disclosure Statement for Federal Direct Loans.

    Loan Repayment Calculator 

     

    Cancellation

    A Direct loan may be cancelled prior to disbursement with written or email notification.  The statement must include the student's name and ID number (CWID).

     

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