Federal Direct Subsidized and Unsubsidized Loan Programs

Federal Direct Subsidized and Unsubsidized Loans are low-interest loans for undergraduate and graduate students. A student may qualify for the Direct Subsidized Loan based on financial need and/or a student may qualify for the Unsubsidized Loan, which is not based on need. The terms and conditions of both loans are the essentially the same, except, the federal government pays the interest on the subsidized loan during in-school, grace, and deferment periods. The student is responsible for paying the interest on the unsubsidized loan from the day the loan is disbursed. Interest payment on the unsubsidized loan may be deferred during in-school, grace and deferment periods; however, the accrued interest may be capitalized or be added to the principal.

Federal Direct Loans are subject to origination and/or default fees which are deducted by the government before each disbursement. The Direct Loan in-school interest rate is a fixed rate of 6.8%.

Eligible graduate students may borrow up to $20,500 per academic year from the Federal Direct Subsidized and Unsubsidized Loan programs. Depending upon financial need, up to $8,500 may be borrowed from the Federal Direct Subsidized Loan program.

The total aggregate Federal Direct Subsidized and Unsubsidized loan debt amount allowed for eligible graduate students is $138,500. This aggregate loan amount includes any Federal Stafford Loans, Guaranteed Student Loans, Federal Direct Loans and Federal Consolidation Loans received as an undergraduate and/or graduate student.

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan has a fixed interest rate of 7.9%, a 3% origination fee and up to a 1% default fee. The annual loan limit of the Graduate PLUS Loan is the cost of education minus any other financial aid received. The credit approval of the Graduate PLUS Loan is based on federal standards. An endorser option is available if the borrower does not meet the credit requirements.

To apply for the Federal Direct and Graduate PLUS loans, go to http://StudentLoans.gov.

Private Educational Loans

Private educational loans are available through private lenders. The terms and conditions of the different private loans vary depending on the particular loan program. The annual loan limits of private educational loans are cost of education minus any other financial aid received. The approval of a private loan is contingent upon the borrower having a positive credit history.