Federal Student Loans

The Federal Direct Loan has a fixed interest rate of 6.8% for new loans disbursed on or after 7/01/06. The federal government pays the interest on the Subsidized Federal Direct Loan during school and for 6 months after a student ceases to be enrolled at least one-half time. The terms of the Unsubsidized Federal Direct Loan are the same as the Subsidized Federal Direct Loan except that interest accrues while the student is in school. Accrued interest may be paid during school or will be capitalized prior to repayment.

The borrowing limit for the Federal Direct Loan Program is $20,500 per academic year (nine months) in a combination of subsidized and unsubsidized funds. The maximum subsidized Federal Direct Loan is $8,500 per academic year. Eligibility for the Subsidized Federal Direct Loan is based on financial need and is determined by analysis of students' FAFSA data.

Students seeking funding beyond what is available through the Federal Direct Loan program may qualify for the Federal Direct Graduate PLUS program. PLUS loans are offered at a fixed interest rate of 8.5%, and interest begins to accrue immediately upon disbursement. Although repayment of a PLUS loan begins within 60 days of disbursement, repayment can be deferred as long as the borrower is enrolled at least one-half time. PLUS loans also require a positive credit history. Contact the financial aid office for additional information.