Federal Student Loans

Federal Student Loans are available through the William D. Ford Federal Direct Loan Program. The Direct Loan Program includes three specific federal loan programs: the Subsidized Stafford Loan Program, the Unsubsidized Stafford Loan Program, and the PLUS Loan program.

Subsidized Stafford Loans are limited to the amount of demonstrated financial need or annual loan limit. "Subsidy" is provided by the federal government paying the interest while the student is enrolled at least half-time.

Unsubsidized Stafford Loans are awarded to assist with educational expenses, but are not limited to demonstrated financial need. The interest is not paid by the federal government and is the responsibility of the student. Payment is deferred on both Subsidized and Unsubsidized Stafford Loans while the student is enrolled at least half-time. Other provisions common to both Subsidized and Unsubsidized Stafford Loans include annual loan limit, aggregate loan limit, interest rate and fees, disbursements, and repayment.

Annual Loan Limits

Eligibility for Stafford Loans is determined by a student's current class standing, with the following limits applying to any combination of Subsidized and Unsubsidized Loans for an academic year (any two consecutive semesters).

  Dependent Students * Independent Students
Freshmen (0-29 earned credits) $5500 $9500
Sophomore (30-59 earned credits) $6500 $10,500
Junior (60-89 earned credits) $7500 $12,500
Senior (90+ earned credits) $7500 $12,500
Graduate N/A $20,500

*Dependent students whose parents are denied a Parent PLUS Loan are eligible for Annual Loan Limits equivalent to an Independent Student

Aggregate Loan Limit

The maximum (sum total outstanding) loan limit for a dependent undergraduate is $31,000, for an independent undergraduate is $57,500, and for a graduate student is $138,500.

Interest Rate and Fees

On July 1, 2012, the Interest Rate for undergraduate Subsidized Stafford Loans is 6.8% fixed during in-school, deferment or grace periods. Interest rate for undergraduate Unsubsidized Loans and for graduate Unsubsidized Loans is 6.8% fixed. For all Direct Subsidized Loans and Direct Unsubsidized Loans for which the earliest disbursement date is on or after July 1, 2012, the origination fee is 1%.

PLUS Loans allow credit-worthy parents of dependent students and credit-worthy graduate students to borrow funds to cover the difference between total cost of attendance and all financial assistance the student may receive each year. Under current regulations, the interest rate for all PLUS Loans is 7.9%. The PLUS Loan origination fee is 4.0%. Interest does begin to accrue immediately upon disbursement of PLUS loans, but payments can be deferred while the student is enrolled at least half-time.

Repayment

Repayment for all Stafford loans is deferred until 6 months after the student stops attending school at least half-time. Complete repayment and deferment provisions are provided in entrance and exit counseling.

PLUS Loans allow credit-worthy parents of dependent students and credit-worthy graduate students to borrow funds to cover the difference between total cost of attendance and all financial assistance the student may receive each year. Under current regulations, the interest rate for all PLUS Loans is 7.9% fixed. The PLUS Loan origination fee is 4.0%. Interest does begin to accrue immediately upon disbursement of PLUS loans, but payments can be deferred while the student is enrolled at least half-time.

PRIVATE STUDENT LOANS are available that can supplement your eligibility through the Federal Stafford and PLUS loan programs. Available from many lenders, Private Alternative Loans contain payment and deferment provisions similar to the Federal Loans, however the interest rate and origination fees may be different. Unlike the Federal Stafford Loans, Private Alternative Loans are credit-qualified loans.