New! All Federal Direct Loans first disbursed on or after March 1, 2013, will have an increased Origination Fee. Starting March 1, 2013, Subsidized and Unsubsidized loan disbursements will have a 1.051% origination fee and PLUS loan disbursements have a 4.204% origination fee.
New! Interest Rates on Direct Loans. Interest rates on Direct Loans disbursed on or after July 1, 2013 have been set.
Undergraduate Direct Subsidized and Unsubsidized interest rates are set at 3.86%
Graduate Direct Unsubsizided loans are fixed at 5.41%.
Parent PLUS and Graduate PLUS loans have an interest rate fixed at 6.41%
Borrowers will begin to accrue interest on new Subsidized Loans during the six-month grace period. The Consolidated Appropriations Act of 2012 temporarily eliminates the interest subsidy on Subsidized Stafford Loans during the grace period. This applies to Subsidized Stafford Loans first disbursed July 1, 2012, through June 30, 2014.
Federal Direct Stafford Loans
The Federal Direct Stafford loan program allows students to borrow low-cost educational loans from the federal government. To be eligible for a Direct Stafford loan, students must be enrolled in a degree-seeking program at least half-time. Repayment of these loans begins 6 months after students leave school or fall below half-time enrollment. There are 2 types of Federal Direct Stafford loans: subsidized and unsubsidized. For detailed information about Direct Stafford loans, visit the U.S. Department of Education.
The Subsidized Stafford Loan is need-based. Students must demonstrate need for this loan by completing the FAFSA (Free Application for Federal Student Aid). Students who qualify for Direct Subsidized loans are not charged interest while attending school at least half-time, during the six-month grace period (for loans first disbursed prior to July 1, 2012), and during deferments.
Unsubsidized loan amounts are intended to help students that do not qualify for need-based aid or for whom need-based aid is not sufficient to meet educational expenses. For this loan, interest starts to accrue from the date of the disbursement.
*Many students receive both a Subsidized and an Unsubsidized Stafford Loan for the same period. The total of your combined Stafford Loans may not exceed the annual loan limit. For more information go to Student Aid on the Web.
Direct Subsidized and Unsubsidized Loans disbursed on or after March 1, 2013, are charged an origination fee of 1.051%.
All students must complete Entrance Counseling. This is a preliminary step in the loan acceptance process that will help you understand your responsibilities regarding your loan before formally accepting terms and conditions for repayment in the Master Promissory Note (MPN) stated below. To complete Entrance Counseling please visit this website and complete this counseling online here.
*Please be advised both Entrance Counseling and the Direct Loan Master Promissory Note (MPN) must be complete, otherwise your Direct loan will not disburse.