Federal Loan Rates, Limits, Terms

Federal Direct Subsidized Loans

Sponsor	U.S. Department of Education, 1-800-557-7394.
Amount	Up to $3,500 Freshman, $4,500 Sophomore, $5,500 Junior and Senior. (NOTE: Effective July 1, 2012 the Subsidized Loan is no longer available to graduate students.)
Interest	Current interest rate 5.50%. Based on 10-year Treasury bond yield plus 2.05 percent. Interest rate not to exceed 8.25%.
Repayment Term	Standard: 10 years. Many other options are available: see Federal Student Aid
Fees	An origination fee of 1.057% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate fee
Eligibility	Student must maintain at least half-time enrollment status (i.e. at least 6 credits/points for undergraduates or, for graduate students, at least 4.5 credits/points or a half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.
Deferral	Principal and interest*. Repayment begins six months after graduation or when the student falls below half-time status.

About the Federal Direct Subsidized Loans

For new Subsidized Loans, the interest subsidy during the six-month grace period is eliminated for students who fall below half-time status.

A Federal Direct Subsidized Loan is a low interest need-based loan made to students enrolled at least half-time who have completed the FAFSA for the appropriate academic year. The federal government pays loan interest while the student is in school, and loan repayment begins six months after the student graduates or drops below half-time enrollment. Eligible students are also automatically considered for the Federal Direct Unsubsidized Loan (described below).

Elimination of Loan Interest Subsidy: Effective July 1, 2012 the Subsidized Loan is no longer available to graduate and professional students for loan periods beginning on or after July 1, 2012. The graduate loan program becomes entirely unsubsidized, which means that the borrowed amount will accrue interest while the student is in school. The annual and aggregate borrowing limits are not affected (the maximum amount a student can borrow in the Direct Loan program will remain at $20,500 per academic year), and all students are automatically evaluated for loan eligibility.

Elimination of Grace Period Interest Subsidy: Effective July 1, 2012, for new Subsidized Loans, the interest subsidy during the six-month grace period is eliminated for students who fall below half-time status.

Federal Direct Unsubsidized Loans

Sponsor	U.S. Department of Education, 1-800-557-7394.
Amount	DEPENDENT STUDENTS: Up to $5,500 Freshman, $6,500 Sophomore, $7,500 Junior/Senior. (All amounts minus any subsidized loan.) Additional unsubsidized amounts may be available if your parent is credit denied for a Plus Loan. INDEPENDENT STUDENTS: Up to $9,500 Freshman, $10,500 Sophomore, $12,500 Junior/Senior, $20,500 Graduates, $40,500 Graduates in health professions. (All amounts minus any subsidized loan.)
Interest	Current interest rate 5.50% for undergraduate students, 7.05% for graduate students. Based on 10-year Treasury bond yield plus 2.05 percent (for undergraduate students) and 10-year Treasury bond yield plus 3.60 percent (for graduate students). Interest rate not to exceed 8.25% (for undergraduate students) and 9.50% (for graduate students).
Repayment Term	Standard: 10 years. Many other options are available: see Federal Student Aid
Fees	An origination fee of 1.057% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate fee
Eligibility	Student must maintain at least half-time enrollment status (i.e. at least 6 credits/points for undergraduates or, for graduate students, at least 4.5 credits/points or a half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.
Deferral	Principal only. Interest may be capitalized. Repayment begins six months after graduation or when the student falls below half-time status.

About the Federal Direct Unsubsidized Loan

Eligible students who have completed the FAFSA for the appropriate academic year are automatically evaluated for the Unsubsidized Loan.

If you are a dependent student whose parent was DENIED a Parent PLUS Loan (described below), you may be eligible for additional unsubsidized loan amounts. For Freshman and Sophomores the additional unsubsidized loan is $4,000. For Juniors & Seniors the additional unsubsidized loan is $5,000. Please contact the Office of Financial Aid so we may suggest these amounts. Documentation of denied PLUS Loan may be required.

Federal Direct PLUS Loan

Sponsor:	U.S. Department of Education, 1-800-557-7394.
Amount:	Up to the full cost of education, minus other financial aid received.
Interest:	Current interest rate 8.05%. Based on 10-year Treasury bond yield plus 4.60 percent. Interest rate not to exceed 10.50%.
Repayment Term:	Standard: 10 years. Many other options are available: see Federal Student Aid
Fees:	An origination fee of 4.228% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate fee
Eligibility:	Student must maintain at least half-time enrollment status (i.e. at least 6 credits/points for undergraduates or, for graduate students, 4.5 credits/points or a half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.
Deferral:	Principal only. Interest may be capitalized. To apply for an in-school deferment, Direct Parent PLUS borrowers should call the Direct Loan Student Loan Support Center at 1-800-557-7394.

About the Federal Direct PLUS Loan

The Federal Direct PLUS Loan is available to eligible parents of dependent undergraduate students and to qualifying graduate and professional students who have completed the FAFSA for the appropriate academic year. PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial aid received. Interest is charged during all periods. The U.S. Department of Education will evaluate the borrower's credit history to determine eligibility.