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 2013-2014 interest rate for the subsidized and unsubsidized loan is 3.86%.

Fees: All Direct Loans are subject to fees of 1.051% 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

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 Additional Unsub Sub/Unsub Total
Graduate/Professional $8,500 + $12,000 = $20,500
Aggregate maximum $65,500   $138,500

The subsidized portion of a graduate's loan aggregate may not exceed $65,500.