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Direct Loans


Federal Direct Loan Program (Subsidized) -- Allows students who demonstrate federal financial need and who are enrolled for at least six credits each term to borrow up to $3,500 for the first year of undergraduate study, $4,500 for the second year, and $5,500 per year for subsequent undergraduate study. The fixed interest rate for loans disbursed in 2013-14 is 3.86%. Interest does not accrue until the student leaves school or drops below half-time enrollment. Repayment begins six months after the student leaves school or drops below half-time enrollment. Interest accrued during in-school deferment is paid by the federal government. The standard repayment period is up to ten years. Subsidized Direct Loans carry a 1.051% federal origination fee. New borrowers must complete a Federal Direct Loan electronic master promissory note and complete an online Entrance Counseling Session to borrow funds through this program.

Federal Direct Loan Program (Unsubsidized) -- Allows all students regardless of federal financial need and who are enrolled for at least six credits per term to borrow up to $5,500 for the first year of undergraduate study, $6,500 for the second year, and $7,500 per year for subsequent undergraduate study less the amount of any subsidized Direct Loan received by the student. New borrowers must complete a Federal Direct Loan electronic master promissory note to borrow funds through this program. The interest rate is fixed at 3.86% for undergraduate students and 5.41% for graduate students. The origination fee is the same as specified above under the description of the subsidized Direct Loan Program, however, interest accrual begins immediately during in-school and deferment periods. Interest accruing during these periods may be paid or capitalized.

Independent students may borrow up to an additional $6,000 per year for the first and second years of undergraduate study and up to an additional $7,000 per year for subsequent undergraduate study through the unsubsidized Direct Loan Program. Dependent students may borrow up to the same additional amounts through this program but only if the student's parent is denied eligibility to borrow funds through the Federal PLUS Loan Program.

► Application Procedures
► Student Loan Information Sheet (PDF)

 
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