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Federal Loan Programs

All federal student loans have fixed interest rates (effective July 1, 2006) and are cancelable in the case of death or permanent disability and under other specific circumstances. They carry no penalty for prepayment and offer a number of deferment options. 

Federal Direct Unsubsidized (Stafford) Loan Program

Federal Direct Unsubsidized (Stafford) Loans are not based on financial need. Graduate students can receive up to $20,500 per academic year. A student's eligibility is determined by subtracting any aid to be received for the loan period (including other loan funds) from the student's Cost of Attendance. The combined total of Federal Direct Subsidized/Unsubsidized (Stafford) Loans borrowed at the undergraduate and graduate levels may not exceed $138,500.

A Federal Direct Unsubsidized (Stafford) Loan borrower is responsible for payment of the interest that accrues from the date of funds disbursement. Payment of accrued interest is optional while the borrower is in school. Any unpaid interest will be capitalized (added to the principal balance) at the end of the six month grace period when repayment begins. An origination fee is deducted by the U.S. Dept. of Education from each loan disbursement. See the Federal Student Aid website for the current interest rate and origination fee.

Repayment of a Federal Direct Unsubsidized (Stafford) Loan (principle and interest) begins six months after a student is no longer enrolled at least half-time. Before the end of the six month grace period, the student will receive (from their assigned federal loan servicer) a repayment schedule with the amount of their loan debt and information about the various repayment plans.

Visit the Federal Student Aid website for more information regarding the Federal Direct Unsubsidized (Stafford) Loan.

Federal Direct PLUS Loan Program for Graduate/Professional Students

The Federal Direct GradPLUS Loan is not based on financial need and is available to students who have borrowed the maximum amount of Federal Direct Unsubsidized (Stafford) Loans. A student's eligibility is determined by subtracting any aid to be received for the loan period (including other loan funds) from the student's Cost of Attendance. Federal Direct GradPLUS Loans are subject to credit approval by the U.S. Dept. of Education.

A Federal Direct GradPLUS Loan borrower is responsible for payment of the interest that accrues from the date of funds disbursement. Payment of accrued interest is optional while the student is in school. Unpaid interest will be capitalized (added to the loan principal) when repayment begins within 60 days after the final loan disbursement. GradPLUS loans will be placed into in-school deferment for borrowers who are certified by their school to be enrolled at least half-time. No payments are required during in-school deferment.

An origination fee is deducted by the U.S. Dept. of Education from each loan disbursement. See the Federal Student Aid website for the current interest rate and origination fee.

Repayment of the Federal Direct GradPLUS Loan (principle and interest) begins six months after a student is no longer enrolled at least half-time. Before the end of the six month post-enrollment deferment, the student will receive a repayment schedule (from their assigned federal loan servicer) with the amount of their loan debt and information about the various repayment plans.

Visit the Federal Student Aid website for more information regarding the Federal Direct GradPLUS Loan.