Federal Loans
The Federal Student Loan Program of the Federal Department of Education is known as the Federal Student Loan Program. William D. Ford Federal Direct Loan Program (Direct Loan). Under this program, the U.S. Department of Education is the lender.
A loan is money you borrow and must pay back with interest. If you apply for a federal student loan, make sure you know the terms and conditions of your loan. More information about federal student loan programs can be found at https://studentaid.gov.
As part of the requirements of the program, the institution will notify the National Student Loan Data System (NSLDS) from the Federal Department of Education information related to federal loans that you and/or your parents have received.
If you are a first-time student borrower, you may have to wait 30 days from the first day of your enrollment period (semester, quarter, etc.) to receive your first disbursement.
If you are a first-time Federal Direct Loan recipient you must complete an entrance interview prior to receiving your first loan disbursement. Similarly, if you are a graduate or professional student applying for a Federal Direct PLUS Loan for the first time, you must complete the entrance interview before receiving your first loan disbursement.
All first-time student loan applicants must complete an orientation regarding their loan duties and responsibilities, as well as receive information about their rights and repayment options.
Below are the available loans.
Direct Subsidized Loans
These are loans granted to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or vocational school.
Loan at the interest rate prevailing in the market at the time of application, but never more than 8.25%. It has an origination fee of 1% deducted from the original balance requested. The federal government pays interest on this loan while applicants are in school. Repayment begins six months after the cessation of studies, graduation or having less than a six-credit load. Currently, the maximum amount granted per year is $5,500 up to a cumulative limit of $23,500.
Direct Unsubsidized Loans
These are loans made to eligible undergraduate, graduate and professional students, but eligibility is not based on financial need.
It is intended to benefit high-income students who do not fully or partially qualify for the subsidized loan. The terms are the same as the Federal Subsidized Stafford Loan, except that the borrower is responsible for interest that accrues from the time it is disbursed. Currently, the maximum amount granted per year is $7,000 up to a cumulative limit of $34,500. The sum between the aggregate limits of subsidized and unsubsidized loans must never exceed $57,500.
Direct PLUS Loans
These are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for educational expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.
Parent Plus Loan: PLUS loans allow parents with good credit history to borrow money to pay for the educational expenses of each of their dependent children who have not yet completed their first bachelor's degree and are enrolled at least half-time. Parents with adverse credit history cannot receive PLUS loans unless they meet additional criteria. Legally married same-sex parents if they were married in a state where same-sex marriage is recognized, even if they reside in another state may be eligible to apply for a PLUS loan. The parent is responsible for repayment of the loan, even though the student is the beneficiary of the loan. To be eligible to receive a Federal Direct PLUS Loan, parents are required to undergo a credit check and complete an intake interview at the following website
Graduate Plus Loan (Graduate Plus): A student pursuing graduate-level studies (master's, doctoral) may apply for Graduate Plus. The amounts requested through this loan cannot exceed the cost of study, always considering any other assistance received.
Direct Consolidation Loans
Private Loans
A student or parent loan from a commercial, state-affiliated or institutional lender used to pay up to the cost of education, less any financial aid received. Private loans have different interest rates, fees and repayment options and usually require the applicant to be creditworthy or have a creditworthy cosigner. Repayment generally begins immediately.
If the student applies and is approved, he/she may opt for this type of loan. The amount of the loan should not exceed the cost of study. If you request a private loan, you must inform the Financial Aid Office at your campus.