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Federal Student Loan

Federal Student Loans are awarded to students to help fund costs for higher education. The student (and parent, if applicable) must complete a FAFSA in order to qualify for student loans. For more detailed information on the application process, visit the applying for financial aid page.

Depending on the student's financial need, federal student loans can be subsidized or unsubsidized. Need is based on the expected family contribution (EFC) calculated by the federal government from FAFSA information.

Please Note: In order to receive federal student loans, the student must be admitted to a degree seeking program and be enrolled in 6 credits for undergraduates or 4.5 credits (half time) for graduate work.

 

Subsidized Loan (Need-based)

Interest does not accrue on the loan while the student is in school at least half-time, or during any future deferment periods. The federal government "subsidizes" (or pays) the interest during these times. For loans that are disbursed after July 1, 2012 the interest will only be "subsidized" (or paid) while the student is in school at least half-time.

Unsubsidized Loan (Non-need based)

Interest will accrue from the time the loan is disbursed to the school, but can be deferred until 6 months after graduation. The student does not have to make any payments on the loan while attending school at least half-time, but may choose to pay the interest while in attendance.

 Origination fees for Federal Direct Stafford Subsidized and Unsubsidized Loans are as follows:

  • If first disbursed on or after March 1, 2013 and prior to December 1, 2013 - 1.051%
  • If first disbursed after December 1, 2013 - 1.072%
  • If first disbursed after October 1, 2014 - 1.073%
This amount is automatically deducted upon disbursement by the U.S. Department of Education.  For specific information on grace, deferment and repayment, see the loan repayment page.

 

Interest Rates

All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.

GRADUATE STUDENTS

The interest rate for Direct Unsubsidized Loans for graduate borrowers  first disbursed on or after July 1, 2013 is 5.41%.

  • If first disbursed on or after July 1, 2014- 6.21%

UNDERGRADUATE STUDENTS

Interest rates for Direct Subsidized Loans for undergraduate borrowers have a fixed interest rate as follows:

  • If first disbursed on or after July 1, 2006 and prior to July 1, 2008 - 6.8%.
  • If first disbursed on or after July 1, 2008 and prior to July 1, 2009 - 6.0%.
  • If first disbursed on or after July 1, 2009 and prior to July 1, 2010 - 5.6%.
  • If first disbursed on or after July 1, 2010 and prior to July 1, 2011 - 4.5%.
  • If first disbursed on or after July 1, 2011 and prior to July 1, 2013 - 3.4%.
  • If first disbursed on or after July 1, 2013 - 3.86% (includes Unsubsidized loans)
  • If first disbursed on or after July 1, 2014- 4.66% (includes Unsubsidized loans)

 

Borrowing Limits

Students may be awarded both Fed Direct Subsidized and Unsubsidized Loans based on expected family contribution (EFC) calculated by the federal government from FAFSA information. Student Loans have annual amount limits based on the student’s credits earned. Actual amounts may be less depending on the student’s financial resources (other aid awarded) and cost of attendance.

150% Direct Subsidized Loan Limit

For first time borrowers on or after July 1, 2013 there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the length of your program. For additional information click here.

Dependent Students

Borrowing limits are effective July 1, 2008

Time frame
Subsidized Amount Limit
Additional Unsubsidized Amount
Total Annual Maximum:
subsidized + unsubsidized
First year (1 - 29 credits)
$3,500
$2,000
$5,500
Second year (30 - 59 credits)
$4,500
$2,000
$6,500
Third year and beyond (60 or more credits)
$5,500
$2,000
$7,500
Aggregate Borrowing Limit


$31,000 (no more than $23,000 can be subsidized

Independent Students

Borrowing limits are effective July 1, 2008

Time frame
Subsidized Amount Limit
Total Annual Maximum:
subsidized + unsubsidized
First year (1 - 29 credits)
$3,500
$9,500
Second year (30 - 59 credits)
$4,500
$10,500
Third year and beyond (60 or more credits)
$5,500
$12,500
Aggregate Borrowing Limit

$57,500 (no more than $23,000 can be subsidized)

Note for Fall graduates:

In accordance with federal regulation, 34 CFR 682.204 (a), (d), your student loan(s) must be adjusted to directly reflect your enrollment for your final term of study if you were not enrolled in summer term. This regulation requires the school to prorate your student loan(s) based on the number of credits you are enrolled at the time of disbursement. Proration is done by dividing the number of credits enrolled by the number of credits in an academic year. This percentage indicates your maximum student loan eligibility for Fall term. If your loans must be prorated, you will be contacted by our office.


Graduate Students

Time frame
Total Annual Maximum:
unsubsidized
Every Year
$20,500

Aggregate Borrowing Limit

$138,500

 

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