Loan Terms

FEDERAL DIRECT SUBSIDIZED AND UNSUBSIDIZED LOAN

Undergraduate and Bachelor Plus students may be eligible for both Federal Direct Subsidized and Unsubsidized Loans.  Subsidized means that the federal government pays the interest while the student is enrolled half-time and is need-based only.  Interest accrues on Unsubsidized Loans while the student is in school and can be paid or added to the principal. To find information on paying your interest while in school, contact your loan servicer.

Degree-seeking Graduate students may be eligible for the Federal Direct Unsubsidized 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.

Note: Teacher Certification Students are not eligible for federal financial aid.  Private Education Alternative Loans can be used to cover these costs.  

Annual Loan Amount:

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

Aggregate Limits:

  • Dependent Undergraduate students (except those whose parents are unable to obtain a PLUS Loan): up to $31.000; No more than $23,000 may be in subsidized loans
  • Independent Undergraduate students (and dependent students whose parents are unable to obtain PLUS Loans): up to 57,500;  No more than $23,000 may be in subsidized loans
  • Graduate and professional degree students: up to $138,500 (including debt borrowed as an undergraduate)

Interest Rate:

  Graduate Undergraduate/Bachelor's Plus
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  5.41% 3.86% 3.86%
7/1/14-9/30/15  n/a 6.21% 4.66% 4.66%
10/1/15-9/30/16  n/a 5.84% 4.29% 4.29%
10/1/16-9/30/17  n/a 5.31% 3.76% 3.76%
2017-18 n/a 6.00% 4.45% 4.45%
2018-19 n/a 6.60% 5.05% 5.05%
2019-20 n/a 6.079% 4.529% 4.529%

Federal Direct Loan interest rates are fixed. Federal Direct  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 1.059 percent to determine amount that will credit to your account (i.e. if loan is $5,000, amount credited is $4,947).

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 7.079 percent for loans first disbursed prior to 10/1/19 (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 4.236 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 student completes PLUS Request at studentaid.gov. Student will see the credit check results immediately, and if approved the loan will be added to the financial award letter.
  • Repayment: Can be 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 Undergraduate or Bachelor’s Plus students only)

  • Loan Amount: up to the cost of education minus any other financial aid.
  • Interest Rate:  interest is fixed at 7.079 percent for loans first disbursed prior to 10/1/19 (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 4.236 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 studentaid.gov. Parent will see the credit decision immediately. If credit is denied, dependent student will be awarded an additional Federal Direct Unsubsidized  Loan of up to $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.