Loan Terms

Important Note for Federal Student Loans: Under the Budget Control Act of 2011, effective for loan periods that begin after 7/1/12, graduate degree-seeking students are no longer eligible for Subsidized Stafford Loans and will be awarded only Unsubisidzed Stafford Loans with interest accruing while enrolled in school. This does NOT affect Bachelor's Plus or Teacher Licensure students' eligiblity for Subsidized Stafford Loans.

FEDERAL DIRECT STAFFORD LOAN

Graduate students may be eligible for the Unsubsidized Stafford Loan. The student is responsible for the interest while in school; interest can be paid quarterly or capitalized and added to the loan principal until after the borrower ceases to be enrolled at least half time.

Annual Loan Amount:

  • Dependent Bachelor’s Plus Students: up to $7,500
  • Independent Bachelor’s Plus and Teacher Licensure Students: up to $12,500
  • Graduate Students: up to $20,500

Interest Rate:

  Graduate Bachelor's Plus/Teacher Licensure
Date Borrowed Subsidized Rate Unsubsidized Rate Subsidized Rate Unsubsidized Rate
7/1/06-6/30/08  6.8%  6.8%  6.8%  6.8%
7/1/08-6/30/09  6.8%  6.8%  6.0%  6.8%
7/1/09-6/30/10  6.8%  6.8%  5.6%  6.8%
7/1/10-6/30/11  6.8%  6.8%  4.5%  6.8%
7/1/11-6/30/12  6.8%  6.8%  3.4%  6.8%
7/1/12-6/30/13  n/a  6.8%  3.4%  6.8%
7/1/13-6/30/14  n/a  3.86% 3.86% 3.86%

As of July 1, 2006, Stafford Loan interest rates are fixed.

Prior to July 1, 2006 Stafford Loans have variable interest rates, capped at 8.25 percent; with rate adjustment on July 1 every year.

As of July 1, 2013, Stafford Loan interest rates will be recalculated annually, effective July 1st, based on the 10-year Treasury not index plus 2.05 percent, capped at 8.25 percent.

Loan Fees: reduce loan proceeds by 1.072 percent to determine amount that will credit to your account (i.e. if loan is $5,000, amount credited is $4946).

Repayment: begins six months after the student ceases to be enrolled at least half time; several repayment options available; the standard plan provides up to 10 years for repayment. Further information regarding repayment options, loan deferment and loan forgiveness programs is available at www.studentloans.gov.

FEDERAL DIRECT GRADUATE PLUS LOAN

  • Loan Amount: up to the cost of education minus any other financial aid.
  • Interest Rate: interest is fixed at 6.41 percent for the 2013-14 academic year (determined annually based on the 10-year Treasury not index plus 2.05 percent, capped at 10.5 percent.
  • Loan Fees: reduce loan proceeds by 4.288 percent to determine amount that will credit to student's account (i.e. if loan is $10,000, amount credited is $9,571).
  • Approval: a credit check is completed by the federal government when student completes PLUS Request at studentloans.gov. Student will see the credit check results immediately, and if approved the loan will be added to the financial award letter.
  • Repayment: deferred while student is enrolled at least half time. Interest will accrue and may be paid while in school or added to the principal when the student is no longer enrolled.

FEDERAL DIRECT PARENT PLUS LOAN

(For parents of Dependent Bachelor’s Plus students only)

  • Loan Amount: up to the cost of education minus any other financial aid.
  • Interest Rate: as of July 1, 2013, interest was fixed at 6.41 percent on the Federal Direct Parent Loan. (determined annually based on the 10-year Treasury not index plus 2.05 percent, capped at 10.5 percent).
  • Loan Fees: reduce loan proceeds by 4.204 percent to determine amount that will credit to student's account (i.e. if loan is $10,000, amount credited is $9,576).
  • Approval: a credit check is completed by the federal government when parent submits the Paren PLUS Request at studentloans.gov. Parent will see the credit decision immediately. If credit is denied, dependent student will be awarded an additional Unsubsidized Stafford Loan of $5,000.
  • Repayment: begins two months after the loan is fully disbursed. However, please note that payments on Federal Parent PLUS Loans disbursed July 1, 2008, or after, may be deferred upon request to the loan servicer while the student is enrolled at least half time. Interest will accrue and may be paid or added to the principal when the child is no longer enrolled.