Office of Financial Aid and Scholarships

SUBSIDIZED Direct Student Loan: This loan is designed to meet the calculated need of students (up to the maximum allowed at each grade level) where grants, scholarships, and other resources do not completely fill the need for aid, as calculated by the federally-mandated need analysis process. For SUBSIDIZED Direct Loans, there is no interest charged as long as the student is continuously enrolled on at least a half-time basis (except for summers). Repayment, including interest, begins six months after a student is no longer enrolled on at least a half-time basis. The current fixed interest rate is [Rate].

UNSUBSIDIZED Direct Student Loan: For students who are not able to show need according to the required need analysis calculation, or where the calculated need for a subsidized loan is less than the maximum that is allowed for the student's grade level, students may apply for an UNSUBSIDIZED Direct Loan. Students who are receiving unsubsidized loans will be billed monthly or quarterly for the interest, beginning within sixty days of the first disbursement of the loan. The student may defer the interest until graduation. Full repayment (not just interest) begins within sixty days after the student drops below half-time. The current fixed interest rate is [Rate].

Direct Graduate PLUS Loan: The Graduate PLUS program allows graduate students, who are enrolled at least half-time in a graduate or professional program (for example, a program that leads to a Master's Degree or to a law or medical degree), to borrow additional unsubsidized Stafford Loans. The PLUS loan may be used to replace the family contribution to the extent that it does not exceed the difference between the student's cost of attendance and other financial aid. Potentially eligible Grad PLUS borrowers are those who are enrolled at least half-time in a graduate or professional program. Students taking courses required for teacher certification or for admission into a graduate or professional program are not eligible for a Direct PLUS Loan. Borrowers are responsible for the interest that accrues on PLUS loans throughout the life of the loan.

» Master Promissory Note (MPN)
The following web link is for completing the Direct Loan Program electronic Master Promissory Note (MPN) that is required when you borrow a Subsidized, Unsubsidized and/or Graduate PLUS loan to assist you in paying for your education, or for a parent PLUS loan that the parent borrows for their child's education.

» Loan Entrance Counseling
The following web link is for completing the loan Entrance Counseling that is required when you borrow a Subsidized, Unsubsidized and/or Graduate PLUS loan to assist you in paying for your education.

» Loan Exit Counseling
The following web link is for completing the loan Exit Counseling that is required when you drop below half-time enrollment and/or graduate and have borrowed a Subsidized, Unsubsidized and/or Graduate PLUS loan to assist you in paying for your education.

» Payment calculator
The following web link is to assist you in estimating your future loan payments based on the amount you borrow, interest rate of your loan(s), and repayment plan selected.

» Budget calculator
The following web link is to assist you in planning your monthly living expenses for college.

Direct Loan Program Comparison Table

Subsidized Loan Award is based on need	Unsubsidized Loan Award is NOT based on need
Student borrows and is responsible for loan.	Student borrows and is responsible for loan.
Enrollment requirement: Must be enrolled in at least half-time (i.e., 6 units or more).	Enrollment requirement: Must be enrolled in at least half-time (i.e., 6 units or more).
Loan Fee 1.5% reduced to 0.5% of the amount borrowed as an interest rebate* on loands first disbursed between July 1, 2009, and June 30, 2010. 2.0% reduced to 0.5% of the amount borrowed as an interest rebate* on loands first disbursed between July 1, 2009, and June 30, 2009. * Borrower retains the interest rebate by making the first 12 monthly payments on time.	Loan Fee 1.5% reduced to 0.5% of the amount borrowed as an interest rebate* on loands first disbursed between July 1, 2009, and June 30, 2010. 2.0% reduced to 0.5% of the amount borrowed as an interest rebate* on loands first disbursed between July 1, 2009, and June 30, 2009. * Borrower retains the interest rebate by making the first 12 monthly payments on time.
Interest Rate for Undergraduate Student: 5.6% fixed rate on loans disbursed by July 1, 2009 through June 30 2010 6.0% fixed rate on loans disbursed by July 1, 2008 through June 30 2009	Interest Rate for Undergraduate Student: 6.8% fixed rate
Interest Rate for Teaching Credential or Graduate Students: 6.8% fixed rate	Interest Rate for Teaching Credential or Graduate Students: 6.8% fixed rate
Capitalized Interest - no interest charged while student is in school at least half-time, during grace and during deferment periods.	Capitalized Interest - interest is charged during all periods.
Repayment - begins after grace period ends	Repayment - begins after grace period ends

Direct Loan Program Comparison Table

Grad PLUS Loan Award is NOT based on need.	Parent PLUS Loan Award is NOT based on need
Conditions of Eligibility - Graduate student can borrow up to his/her cost of attendance excluding other financial aid, resources and the annual subsidized and/or unsubsidized loan limits ($20,500). Graduate student should have already activated his/her annual subsidized and unsubsidized loans. Graduate student cannot have an adverse credit history.	Conditions of Eligibility - Parent can borrow up to the student's cost of attendance excluding other financial aid, resources and the student's annual subsidized and/or unsubsidized loan eligibility. Parent can borrow to pay for student's educational expenses IF student is a dependent undergraduate enrolled in at least half-time Parent cannot have an adverse credit history.
Enrollment requirement: Must be enrolled at least half-time (i.e., 6 units or more).	Enrollment requirement: Must be enrolled at least half-time (i.e., 6 units or more).
Loan Fee - 4% which is adjusted down by a 1.5% repayment rebate.	Loan Fee - 4% which is adjusted down by a 1.5% repayment rebate.
Interest Rate - 7.9% fixed rate.	Interest Rate - 7.9% fixed rate.
Capitalized Interest - interest begins to accumulate at the time the first disbursement is made.	Capitalized Interest - interest begins to accumulate at the time the first disbursement is made.
Repayment - Usually begins within 60 days after the loan is usually disbursed (typically the spring term) There is no grace period for this loan. On loans borrowed through June 30, 2009: You must repay both principal and interest while you are in school. On loans borrowed on or after July 1, 2009: You may receive a deferment while enrolled at least half-time at an eligible school. Interest accumulates and capitalizes while in deferment	Repayment - Usually begins within 60 days after the loan is usually disbursed (typically the spring term) On loans borrowed through June 30, 2008: Parent must repay both principal and interest while the student is in school. On loans borrowed on or after July 1, 2008: Parent may request deferment of repayment while the student is enrolled at least half-time. Interest accumulates and capitlizes while in deferment.

Refer to Funding Education Beyond High School: The Guide to Federal Student Aid from the U.S. Department of Education for more information on federal loans at http://studentaid.ed.gov/students/publications/student_guide/index.html

Academic Year Direct Loan Program Borrowing Limits for Dependent Students

Academic Year Direct Loan Program Borrowing Limits for Independent Students

The above academic year Direct Loan program limits represent maximum yearly award amounts; however, eligibility for subsidized loans is based on unmet need, while eligibility for Unsubsidized loans is based on the cost of education minus any other aid awarded. Therefore, please be aware that actual loan eligibility may be less than the maximum yearly award amounts indicated above. To be considered for any of the William D. Ford Direct Loans, you should complete the Free Application for Federal Student Aid (FAFSA). The priority deadline is March 2 of each year for the subsequent academic year, which begins in mid-September. Applications received after the deadline will be processed as soon as possible after on-time applications are considered.

Cumulative Direct Loan Program Time Limits (for all post-secondary Federal Stafford Student loans)