une Financial Aid
 

WELCOME TO FEDERAL STUDENT LOANS INFORMATION'S

If you decide to take out a loan, make sure you understand the terms and conditions of the loan. Student loans can come from the federal government, Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources.

Subsidized and Unsubsidized Loans

The U.S. Department of Education offers low-interest loans to eligible students to help cover the cost of college or career school.

Students may be eligible to receive subsidized and unsubsidized loans based on their financial need.

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans

  • Direct Subsidized Loans

Direct Subsidized Loans are available to undergraduate students with financial need. Your school determines the amount you can borrow, and the amount may not exceed your financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan:

• While you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).

*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance

  • Direct Unsubsidized Loans

Are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

Am I eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan?

To receive either type of loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan

Is there a time limit on how long I can receive loans?

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.

For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years). If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years).

Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.

Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U.S. Department of Education usually would have paid it. These enrollment patterns are described below

How do I apply for a loan?

To apply for a Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA). Your school will use the information from your FAFSA to determine how much student aid you are eligible to receive. Direct Loans are generally included as part of your financial aid package.

How much can I borrow?

Your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year. However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on:

• What year you are in school; and,
• Whether you are a dependent or independent student.

If you are a dependent student whose parents are ineligible for a Direct PLUS Loan, you may be able to receive additional Direct Unsubsidized Loan funds.

If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.

Year

Dependent Students (except
students whose parents are
unable to obtain PLUS Loans)

Independent Students (and
dependent undergraduate students
whose parents are unable to
obtain PLUS Loans)

First-Year Undergraduate
Annual Loan Limit

$5,500—No more than $3,500 of this
amount may be in subsidized loans.

$9,500—No more than $3,500 of this
amount may be in subsidized loans.

Second-Year
Undergraduate Annual
Loan Limit

$6,500—No more than $4,500 of this
amount may be in subsidized loans.

$10,500—No more than $4,500
of this amount may be in subsidized loans.

Third-Year and
Beyond  Undergraduate
Annual Loan Limit

$7,500—No more than $5,500 of this
amount may be in subsidized loans.

$12,500—No more than $5,500
of this amount may be in subsidized loans.

Graduate or
Professional Students
Annual Loan Limit

Not Applicable (all graduate and
professional students are
considered independent)

$20,500 (unsubsidized only)

Subsidized and
Unsubsidized Aggregate
Loan Limit

$31,000—No more than $23,000
of this amount may be in subsidized loans.

$57,500 for undergraduates—No more
than $23,000 of this amount may
be in subsidized loans.

$138,500 for graduate or
professional students—No more
than $65,500 of this amount may be
in subsidized loans. The graduate
aggregate limit includes all federal
loans received for undergraduate study.

Notes: The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect July 1, 2010, no further loans are being made under the FFEL Program.

Effective for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study.

Graduate and professional students enrolled in certain health profession programs may receive additional Direct Unsubsidized Loan amounts each academic year beyond those shown above. For these students, there is also a higher aggregate limit on Direct Unsubsidized Loans. If you are enrolled in a health profession program, talk to the financial aid office at your school for information about annual and aggregate limits

What are the current interest rates?

Here are the interest rates for loans first disbursed between July 1, 2013, and June 30, 2014.

 

Undergraduate Students

Graduate Students

Direct Subsidized Loans

6.8%

N/A

Direct Unsubsidized Loans

6.8%

6.8%

• Prior federal loans and financial aid history—If you already have federal student loans and would like to check the interest rate, servicer information, and other financial aid history, go to the National Student Loan Data System.
Understanding interest rates and fees—find out how interest is calculated.
Information for military members—if you are a member of the military, you may be eligible for special interest benefits relating to your federal student loans.

Other than interest, is there a charge for this loan?

Yes, there is a 1.051% loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee will be proportionately deducted from each loan disbursement.

What additional steps must I take to receive my loan?

If your financial aid package includes federal student loans, your school will tell you how to accept the loan. Contact the financial aid office for details regarding the process for receiving a loan at your school. If it is your first time receiving a Direct Loan, you will be required to:

• complete entrance counseling, a tool to ensure you understand your obligation to repay the loan; and
• sign a Master Promissory Note (MPN), agreeing to the terms of the loan

How will I receive my loan?

The school will first apply your loan funds to your school account to pay for tuition, fees, room and board, and other school charges. If any additional loan funds remain, they will be returned to you. All loan funds must be used for your education expenses

Who will contact me after I receive my loan?

When you receive your Direct Loan, you will be contacted by your loan servicer (you repay your loan to the loan servicer). Your loan servicer will provide regular updates on the status of your Direct Loan, and any additional Direct Loans that you receive.

When do I have to pay back my loan?

After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date. Payments are usually due monthly.

What types of loan repayment plans are available?

There are several repayment options available that are designed to meet the individual needs of borrowers. Your loan servicer can help you understand which repayment options are available to you. Generally, you’ll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose.

What if I have trouble repaying my loan?

If you are unable to make your scheduled loan payments, contact your loan servicer immediately. Your loan servicer can help you understand your options for keeping your loan in good standing. For example, you may wish to change your repayment plan to lower your monthly payment or request a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan.

Can I cancel a loan if I decide that I don't need it or if I need less than the amount offered?

Yes. Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying your school. After your loan is disbursed, you may cancel all or part of the loan within certain time frames. Your promissory note and additional information you receive from your school will explain the procedures and time frames for canceling your loan.

Can my loan ever be forgiven or discharged?

Under certain conditions, you may be eligible to have all or part of your loan discharged or forgiven (canceled).

PLUS LOAN

PLUS loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay education expenses. The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.

Here’s a quick overview of Direct PLUS Loans:

  • The U.S. Department of Education is the lender.
  • The borrower must not have an adverse credit history.
  • Loans have a fixed interest rate of 7.9%.
  • The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received

To receive a Direct PLUS Loan, you must:

  • Be a graduate or professional degree student enrolled at least half-time at an eligible school in a program leading to a degree or certificate, or be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at a participating school; and,
  • Meet the general eligibility requirements for federal student aid. If you are borrowing on behalf of your child, your child must also meet these requirements.

In order to receive a Direct PLUS loan, you (or your child, in the case of parent borrowers) must complete the Free Application for Federal Student Aid (FAFSA). The school's financial aid office will provide instructions about their process for requesting a Direct PLUS Loan.

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to your adverse credit history. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.

If a parent borrower is unable to secure a PLUS Loan, the undergraduate dependent student may be eligible for additional unsubsized loans to help pay for his or the education. The dependent student should contact the financial aid office for more information.

If you are eligible for a Direct PLUS Loan, you will be required to sign a Master Promissory Note (MPN), agreeing to the terms of the loan. Graduate or professional students will also be required to complete entrance counseling before receiving a PLUS loan. Contact the financial aid office for details regarding the process at that school.

The maximum PLUS loan amount you can borrow is the cost of attendance (determined by the school) minus any other financial assistance received.

The interest rate for Direct PLUS Loans is a fixed rate of 7.9%. There is a 4.204% loan origination fee on all Direct PLUS Loans. The fee will be proportionately deducted from each loan disbursement.

The school will first apply Direct PLUS Loan funds to the school account to pay for tuition, fees, room and board, and other school charges. If any loan funds remain, your school will give them to you to help pay other education expenses.

When you receive your Direct PLUS Loan, you will be contacted by your loan servicer. Your loan servicer will provide regular updates on the status of your Direct PLUS Loan and will provide you with information on how and when to repay your loan.

Your Direct PLUS Loan enters repayment once your loan is fully disbursed (paid out). However, if you are a graduate or professional student, your loan will be placed into deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time.

If you are a parent borrower, you may contact your loan servicer to request a deferment:

  • While you or your child are enrolled at least half-time; and,
  • For an additional six months after your child ceases to be enrolled at least half-time.

If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.

There are several repayment plans that are designed to meet the different needs of individual borrowers.

If you are unable to make your scheduled loan payments, contact your loan servicer immediately. Your servicer can help you understand your options for keeping your loan in good standing. For example, you may wish to change your repayment plan or request a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan.

A Direct PLUS Loan made to a parent cannot be transferred to the child. You, the parent, are responsible for repaying the loan.

Before your loan money is disbursed, you may cancel all or part of your loan by notifying your school.

After your loan is disbursed, you may cancel all or part of your loan within certain time frames. Your promissory note and additional information you receive from your school will explain the procedures and time frames for canceling your loan.

You also may qualify for forgiveness of some or your entire loan if you meet certain conditions
You must repay your loans even if you don’t complete your education, can’t find a job related to your program of study, or are unhappy with the education you paid for with your loan. However, certain circumstances might lead to your loans being forgiven, canceled, or discharged

Total and Permanent Disability (TPD) Discharge

A TPD discharge relieves you from having to repay a William D. Ford Federal Direct Loan Program loan, Federal Family Education Loan (FFEL) Program loan, and/or Federal Perkins Loan (Perkins Loan) Program loan or complete a TEACH Grant service obligation on the basis of your total and permanent disability. Before your federal student loans or TEACH Grant service obligation can be discharged, you must provide information to the U.S. Department of Education (ED) to show that you are totally and permanently disabled. ED will evaluate the information and determine if you qualify for a TPD discharge.

You can show that you are totally and permanently disabled in one of the following three ways:

1. If you are a veteran, you can submit documentation from the U.S. Department of Veterans Affairs (VA) showing that the VA has determined that you are unemployable due to a service-connected disability.
2. If you are receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits, you can submit a Social Security Administration (SSA) notice of award for SSDI or SSI benefits stating that your next scheduled disability review will be within five to seven years from the date of your most recent SSA disability determination.
3. You can submit certification from a physician that you are totally and permanently disabled. Your physician must certify that you are unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that:

• Can be expected to result in death,
• Has lasted for a continuous period of not less than 60 months, or
• Can be expected to last for a continuous period of not less than 60 months.

Death Discharge

If you, the borrower, die, then your federal student loans will be discharged. If you are a parent PLUS loan borrower, then the loan may be discharged if you die, or if the student on whose behalf you obtained the loan dies.

The loan will be discharged if a family member or other representative provides a certified copy of the death certificate to the school (for a Federal Perkins Loan) or to the loan servicer (for a Direct Loan or FFEL Program loan).

Discharge in Bankruptcy

This is not an automatic process—you must prove to the bankruptcy court that repaying your student loan would cause undue hardship.

If you file Chapter 7 or Chapter 13 bankruptcy, you may have your loan discharged in bankruptcy, only if the bankruptcy court finds that repayment would impose undue hardship on you and your dependents. This must be decided in an adversary proceeding in bankruptcy court. Your creditors may be present to challenge the request. The court uses this three-part test to determine hardship:

• If you are forced to repay the loan, you would not be able to maintain a minimal standard of living.
• There is evidence that this hardship will continue for a significant portion of the loan repayment period.
• You made good-faith efforts to repay the loan before filing bankruptcy (usually this means you have been in repayment for a minimum of five years).

Your loan will not be discharged if you are unable to satisfy any one of the three requirements. If your loan is discharged, you will not have to repay any portion of your loan, and all collection activity will stop. You also will regain eligibility for federal student aid if you had previously lost it.

Closed School Discharge

You may be eligible for discharge of your Direct Loans and FFEL Program loans under either of these circumstances:

  • Your school closes while you're enrolled, and you do not complete your program because of the closure. Any federal student loan obtained to pay your cost of attendance at that school could be discharged. If you were on an approved leave of absence, you are considered to have been enrolled at the school.
  • Your school closes within 90 days after you withdraw.
  • You are not eligible for discharge of your Direct Loans or FFEL Program loans if your school closes and any of the following is true:
    • You withdraw more than 90 days before the school closes.
    • You are completing a comparable educational program at another school. If you complete such a program at another school after your loan is discharged, you might have to pay back the amount of the discharge.
    • You have completed all the coursework for the program, but you have not received a diploma or certificate.

You might need your academic records if you plan to attend another school and want to have your coursework at the closed school taken into consideration. So it will be important for you to obtain your academic and financial aid records if your school closes. Contact the state licensing agency in the state in which the school was located to ask whether the state made arrangements to keep the records. The records might also be useful in substantiating your claim for a loan discharge.

False Certification of Student Eligibility or Unauthorized Payment Discharge

You may be eligible for a discharge of your Direct Loan or FFEL Program loan in these circumstances:

  • Your school falsely certified your eligibility to receive the loan based on your ability to benefit from its training, and you did not meet the ability to benefit student eligibility requirements.
  • The school signed your name on the application or promissory note without your authorization or the school endorsed your loan check or signed your authorization for electronic funds transfer without your knowledge, unless the proceeds of the loan were delivered to you or applied to charges owed by you to the school.
  • Your loan was falsely certified because you were a victim of identity theft.
  • The school certified your eligibility, but because of a physical or mental condition, age, criminal record, or other reason you are disqualified from employment in the occupation in which you were being trained.

Unpaid Refund Discharge

You may be eligible for a discharge of your Direct Loan or FFEL Program loan if you withdrew from school, but the school didn’t pay a refund that it owed to the U.S. Department of Education or to the lender, as appropriate. Check with the school to see how refund policies apply to federal aid at the school.

Only the amount of the unpaid refund will be discharged. You may qualify for this partial discharge whether the school is closed or open. Contact your loan servicer for more information.

Teacher Loan Forgiveness

If you are a teacher and also a new borrower (i.e., you did not have an outstanding balance on a Direct Loan or FFEL Program loan on Oct. 1, 1998, or on the date you obtained a Direct Loan or FFEL Program loan after Oct. 1, 1998) and have been teaching full-time in a low-income elementary or secondary school or educational service agency for five consecutive years, you may be able to have as much as $17,500 of your subsidized or unsubsidized loans forgiven. Your PLUS loans cannot be included. For more information, go to Teacher Loan Forgiveness. If you have a Federal Perkins Loan, see Perkins Loan Cancellation for teacher cancellation in that loan program.

Public Service Loan Forgiveness

If you are employed in certain public service jobs and have made 120 payments on your Direct Loans (after Oct. 1, 2007), the remaining balance that you owe may be forgiven. Only payments made under certain repayment plans may be counted toward the required 120 payments. You must not be in default on the loans that are forgiven. For more information, go to Public Service Loan Forgiveness.

Perkins Loan Cancellation and Discharge

The following Federal Perkins Loan Program cancellations apply to individuals who perform certain types of public service or are employed in certain occupations.

For each complete year of service, a percentage of the loan may be canceled. The total percentage of the loan that can be canceled depends on the type of service performed. Depending on the type of loan you have, and when that loan was taken out, you may be eligible to cancel part of or your entire loan if you have served as one of the following:

  • Volunteer in the Peace Corps or ACTION program (including VISTA)
  • Teacher
  • Member of the U.S. armed forces (serving in area of hostilities)
  • Nurse or medical technician
  • Law enforcement or corrections officer
  • Head Start worker
  • Child or family services worker
  • Professional provider of early intervention services

There is no standard application form for Perkins Loan cancellations. Contact the school that you were attending when you received the loan.

To view the Perkins Loan Cancellation and Discharge Summary Chart, go to Forgiveness, Cancellation, and Discharge Charts.

After reviewing the conditions, if you think you qualify, contact your loan servicer. If you have a Federal Perkins Loan, you must apply to the school that made the loan or contact the loan servicer the school has designated.

Certain types of cancellations are available to military personnel, teachers, nurses, child care providers, or borrowers affected by the closure of a school. Provisions differ depending on the type of loan you have. You can view your loan information including the types of loans you have and your loan servicer at the National Student Loan Data System (NSLDS®).

Until you hear whether your discharge has been approved, you should continue making payments on your loan to prevent it from going into default or accruing (accumulating) additional interest. However, note the following:

  • If you have a Direct Subsidized Loan, Direct Unsubsidized Loan, Federal Subsidized Stafford Loan, or Federal Unsubsidized Stafford Loan, you can be granted forbearance. Your loan servicer should grant forbearance until a decision is made on your application. If forbearance is granted, no one is permitted to collect on your loan until it is determined whether you are eligible for a loan discharge.

If you qualify for a complete discharge of your loan, you are no longer obligated to make loan payments. Depending on the type of loan discharge program for which you may be eligible, the U.S. Department of Education may be required to refund to you some or all of the payments you made on the loan. In addition, any adverse credit record related to a default might be deleted, and no tax refund offset or wage garnishment will take place to collect on the discharged loan. If the loan was in default, the discharge may erase the default status. If you have no other defaulted loans, you regain eligibility for federal student aid.

Note: In some cases, your school might be required to refund a portion of a Direct Loan or FFEL Program loan to the U.S. Department of Education (for example, you withdrew from school within a timeframe that required a refund of loan funds). If your school fails to make that refund, that portion of your loan will be canceled, but you will be responsible for paying any remaining amount.

For most discharges, the final decision on whether to discharge the loan cannot be appealed. The two exceptions are false certification and forged signature discharges. If you receive these types of discharges, you may ask the U.S. Department of Education to review the denial.

If your loan discharge is denied, you remain responsible for repaying the loan. Talk to your loan servicer about repayment options if you have a Direct Loan or FFEL Program loan.

If your loan is in default, go to Understanding Default for more information.

If your school has closed, you should also explore the following options if your discharge application is denied:

  • Contact the state licensing agency and ask if there is a tuition recovery fund or performance bond that will cover your damages based on the school closure.
  • If the school filed bankruptcy, you should file a claim for your loss in the bankruptcy proceeding. You also might want to consult an attorney about any options you may have through the court system.

Common Questions

The following are some common questions about loan forgiveness, cancellation, or discharge.

I was very young when I borrowed this money. Do I still have to pay?

Yes. The fact that you didn’t fully understand the implications of getting a loan, or the fact that it’s been many years since you signed for the loan, does not mean that you do not have to pay.

I signed the Master Promissory Note but I didn't attend class. Do I still have to pay?

If you received the proceeds of a loan but never attended classes, you are obligated to return the funds immediately. Your school will return any funds that it received and applied to your account. If you do not return the funds that you directly received, your loan will be placed in default.

I’m a parent that took a PLUS loan to help pay for my child’s education. Can my loan ever be forgiven, canceled, or discharged?

You must repay your parent PLUS loan even if the student doesn’t complete his or her education or can’t find a job related to the program of study, or if you or the student is unhappy with the education. However, the loan may be discharged if the child for whom you borrowed dies, or if you die or become totally and permanently disabled.

We may discharge some or your entire loan in any of these circumstances:

  • The school closed before the student completed the program.
  • The school forged the signature on your promissory note or falsely certified that you were eligible for aid.
  • The loan was falsely certified through identity theft.
  • The student withdrew from school but the school didn’t pay a refund that it owed. Check with the school to see how refund policies apply to federal aid at the school.
  • The loan was discharged in bankruptcy claim. This is not an automatic process—you must prove to the bankruptcy court that repaying the loan would cause undue hardship.

Understand how interest is calculated and what fees are associated with your federal student loan.

Remember, you may find that interest rates and fees are lower for federal student loans than private student loans. If you receive a federal student loan, you will be required to repay that loan with interest. It is important that you understand how interest is calculated and the fees associated with your loan. Both of these factors will impact the amount you will be required to repay.

Interest is money paid to the lender in exchange for borrowing money. Interest is calculated as a percentage of the unpaid principal amount (loan amount) borrowed.

What are the interest rates for federal student loans?

The following table provides interest rates for each type of federal student loan.

Loan Interest Rates by Disbursement Dates

Loan Type

First Disbursed on or after July 1, 2013

Direct Subsidized Loans (Undergraduate Students)

Fixed at 6.8%

Direct Unsubsidized Loans (Undergraduate and
Graduate or Professional Students)

Fixed at 6.8%

Direct PLUS Loans (Parents and Graduate or
Professional Students)

Fixed at 7.9%

Perkins Loans (Undergraduate and Graduate or
Professional Students)

Fixed at 5%

Note: The interest rates for federal student loans are determined by federal law. If there are future changes to federal law that affect federal student loan interest rates, we will update this page to reflect those changes.

View the interest rates on federal student loans first disbursed before July 1, 2013.

Who sets interest rates for federal student loans?

Interest rates on federal student loans are set by Congress.

How is interest calculated?

The amount of interest that accrues (accumulates) on your loan from month to month is determined by a simple daily interest formula. This formula consists of multiplying your loan balance by the number of days since the last payment times the interest rate factor.

Simple daily interest formula:

Outstanding principal balance:

x number of days since last payment
x interest rate factor
= interest amount

The interest rate factor is used to calculate the amount of interest that accrues on your loan. It is determined by dividing your loan's interest rate by the number of days in the year.

How can I determine how much of my payment will go toward my outstanding principal balance?

Your loan servicer can tell you how much of your payment is applied to your principal balance.

Most federal student loans have loan fees that are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

Here are the current loan fees for federal student loans:

  • 1.051% for Direct Subsidized Loans and Direct Unsubsidized Loans
  • 4.204% for Direct PLUS Loans for parents and graduate and professional students

The following table provides interest rates for each type of federal student loan first disbursed prior to July 1, 2013.

 

Loan Interest Rates by Disbursement Dates

Loan Type

First Disbursed Between July 1, 1998,
and June 30, 2006

First Disbursed Between
July 1, 2006, and June 30, 2013

Direct Subsidized Loans
and Subsidized Federal
Stafford Loans
(Undergraduate Students)

The interest rate is variable (adjusted annually
on July 1st) and will not exceed 8.25%.

Between 7/1/13 and 6/30/14, loans in
repayment or forbearance have an interest
rate of 2.35%,and loans in an in-school,
grace, or deferment period have a lower
rate of 1.75%.

7/1/06-6/30/08: Fixed at 6.8%

7/1/08-6/30/09: Fixed at 6.0%

7/1/09-6/30/10: Fixed at 5.6%

7/1/10-6/30/11: Fixed at 4.5%
7/1/11-6/30/13: Fixed at 3.4%

Direct Subsidized Loans
and Subsidized Federal
Stafford Loans
(Graduate Students) and
Direct Unsubsidized Loans
and Unsubsidized Federal
Stafford Loans
(Undergraduate and
Graduate or
Professional Students)

Fixed at 6.8%

Direct PLUS Loans
(Parents and Graduate
or Professional Students)

The interest rate is variable (adjusted annually
on July 1st) and will not exceed 9.0%.

Between 7/1/13 and 6/30/14, the interest rate
on these loans is 3.15%.

Fixed at 7.9%

FFEL PLUS Loans
(Parents and Graduate
or Professional Students)

Fixed at 8.5%

Note: As of July 1, 2012, graduate or professional students are no longer eligible to receive subsidized loans. In addition, no new FFEL Program loans have been made since July 1, 2010.

Eligibility Requirements to Request or Renew Loans

You must comply with all Federal and Institutional requirements to be eligible for a Student Loan; if you do not comply with these requirements your application will not be processed. If you should have any doubts or questions please access the Frequently Asked Questions section.

Important: To apply for a Student Loan through the Internet you must readily have available your User Id, Student Pin Number, and Driver’s License Number (if you have one). You should also have available references of a family member and another personal reference, with complete and different addresses, address of your employer (if applicable), and telephone numbers.

  1. Have no payments in "Default" of other student loans.

  2. Have an active Institutional e-mail account. Activate your account here.

  3. Have your Free Application for Federal Student Aid (FAFSA) eligibility established and all required documents. To apply for a FAFSA To apply for a FAFSA, click here..

  4. Have a Personal Identification Number (PIN Number) provided by the U.S. Department of Education. If you do not have PIN number click here.

  5. Have financial need, need, except in the case of certain types of loans.

  6. Be a U.S. Citizen or Permanent Resident (citizenship evidence required)

  7. Have a valid Social Security number (copy of SS Card required).

  8. Have Satisfactory Academic Progress. Any Readmission Student on Academic Suspension must comply with the one (1) year suspension in accordance with the established standards and norms in order to participate of Federal financial assistance. Students on probation must comply with the established grade point average (GPA).

  9. Have registered in a minimum 6 credit academic course load at the undergraduate level for an academic term and 3 credit at the Masters or Doctoral level for an academic term.

  10. Complete the Entrance interview in which your rights and responsibilities as a borrower are explained and sign the Master Promissory Note, if it is the first time you request a loan at the Institution.

If you do not comply with all these requirements your loan will not be processed. Any incomplete information on your application will delay disbursement of your student loan. Once you apply for a loan, your application is evaluated by an Admissions and Financial Assistant Officer to determine your eligibility and the amount of the loan. Your eligibility will be verified each academic term prior to disbursement of your student loan. Remember to borrow only the amount truly necessary by academic term. The maximum amount offered is for the current academic year.
REMEMBER, IF COURSES ARE ADDED OR DELETED, YOU MUST NOTIFY THE ADMISSIONS AND FINANCIAL ASSISTANCE OFFICE GIVEN THAT THIS AFFECTS THE AMOUNT REQUESTED IN YOUR LOAN

Note: To reduce the requested amount (less than the amount than which you are eligible to), cancel, increase or for unsubsidized loans you must visit the Admissions and Financial Assistant Office.

To complete the Entrance and/or Exit Interview click here.

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