Federal Direct Loan
Federal Direct Loans (Subsidized and Unsubsidized) may be packaged as part of a student's aid award if the student has filed a FAFSA. The 2022-2023 interest rate for the subsidized and unsubsidized loan is 4.99%.
Fees: All Direct Loans are subject to fees of 1.057% that are withheld from the amount received. Fees are deducted from the loan proceeds at the time funds are disbursed.
In the first year that a student borrows, a student must complete entrance counseling and a master promissory note for each of the programs. In subsequent years, the student must only file a Renewal FAFSA to be considered for these types of loan assistance. There are four types of repayment plan - standard, extended, graduated, and income contingent - so you can choose the one that is best suited for your situation. Visit studentloans.gov for additional information on loan repayment and consolidation.
Important Loan Processing Tips
- Loans are disbursed half in each semester. You can reduce or cancel a disbursement of a loan at any time before the loan is received by Student Accounts.
- Using the information and worksheets provided by the College, plan your annual financial needs by June and complete the loan process by August 1.
- If you have questions, contact the College to review loan options and processes early in the summer to avoid late disbursements and finance charges.
- Utilize the on-line application processes for Federal Direct Loan.
Application Process
Exit Counseling and Servicing Center
- Exit Counseling for Federal Direct Loans
- Direct Loan Servicing Center: your account, consolidation, electronic services, & online payments
Consumer Information on Public Service Loan Forgiveness
The Department of Education posted information for consumers about the Public Service Loan Forgiveness (PSLF) Program including a fact sheet that gives general information and a list of questions and answers that address specific aspects of the program. In the Q&A, the Department states that borrowers are responsible for documenting their eligibility for PSLF. The Q&A also details which loans, payments, and employers are required to be eligible.
Ford Federal Direct Loan Annual Maximums
Dependent Students - Undergraduates
| Grade Level | Maximum Sub only | Additional Unsub | Sub/Unsub Total |
|---|---|---|---|
| 1st year | $3,500 + | $2,000 = | $5,500 |
| 2nd year | $4,500 + | $2,000 = | $6,500 |
| 3rd-5th year | $5,500 + | $2,000 = | $7,500 |
| Aggregate maximum | $23,000 | $31,000 |
The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000.
Independent Students - Undergraduate
| Grade Level | Maximum Sub only | Additional Unsub | Sub/Unsub Total |
|---|---|---|---|
| 1st year | $3,500 + | $6,000 = | $9,500 |
| 2nd year | $4,500 + | $6,000 = | $10,500 |
| 3rd-5th year | $5,500 + | $7,000 = | $12,500 |
| Aggregate maximum | $23,000 | $57,500 |
The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000.
Independent Students - Graduate
| Grade Level | Maximum Sub only | Unsubsidized | Unsub Total |
|---|---|---|---|
| Graduate/Professional | No longer available | $20,500 | $20,500 |
| Aggregate maximum | $138,500 |
The subsidized portion of a graduate's loan aggregate may not exceed $65,500.