Federal Direct Loans
The Federal Direct Loan Program consists of subsidized and unsubsidized loans. Repayment of these loans may be deferred while you are attending the university on a half-time or full-time basis.
The subsidized loan is awarded according to demonstrated financial need. Interest is paid by the federal government as long as you are enrolled at least half-time at the university and during your six month grace period. Repayment of the loan begins at the end of the six month grace period after leaving school or dropping below half-time.
The unsubsidized loan is awarded regardless of demonstrated need. Interest begins accruing from the date of disbursement. By making interest payments while in school, capitalization of the interest can be avoided. When interest is capitalized, it is added to the principal amount of the loan upon which further interest charges are based.
Direct Loan Limits
Dependent undergraduate students enrolled in a degree-seeking program may borrow per year up to:
- $5,500 as a freshman
- $6,500 as a sophomore (at least 30 credit hours earned)
- $7,500 as a junior or senior (at least 60 credit hours earned)
- Maximum amount allowed to borrow while in school: $31,000
Independent undergraduate students and dependent students whose parents have been denied access to a Federal Direct PLUS Loan may borrow per year up to:
- $9,500 as a freshman ($3,500 of which may be subsidized loans)
- $10,500 as a sophomore ($4,500 of which may be subsidized loans)
- $12,500 as a junior or senior ($5,500 of which may be subsidized loans)
- Maximum amount allowed to borrow while in school: $57,500
Graduate students are generally allowed to borrow up to $20,500 each academic year.
Interest Rates for 2013 - 2014
Myrone, a student loan counselor for SALT, outlines resources like NSLDS that borrowers can use to stay on top of how much they owe.
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