Federal Loans
The Direct Loan Program is provided and administered by the Federal government, U.S. Department of Education. This loan is designed to help students pay for tuition, fees, books, and living expenses. Student loans must be repaid. Student loan borrowing cannot exceed the cost of attendance, nor may you borrow over the annual and lifetime aggregates that are set for the Direct Loan. The Department of Education assesses an origination fee on each loan upon disbursement. The type of loan you are offered is based upon the results of the FAFSA. If the student or parent obtains a loan, the loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools authorized users of the data system.
The following tables provides the fixed interest rates and origination fees for new Direct Loans first disbursed on or after for July 1, 2021 to July 1, 2022. These rates will apply to new Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans made during this time.
Federal Direct Loan Interest
Undergraduate | 2022 - 2023 Aid Year |
Direct Subsidized Loan | 4.99% |
Direct Unsubsidized Loan | 4.99% |
Direct Parent PLUS Loan | 7.54% |
Graduate or Professional | 2022 - 2023 Aid Year |
Direct Unsubsidized Loan | 6.54% |
Direct Graduate PLUS Loan | 7.54% |
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Federal Direct Loan Fees
Federal Loan Type | First Disbursement Date: |
Direct Subsidized Loan | 1.057% |
Direct Unsubsidized Loan | 1.057% |
Direct Parent PLUS Loan | 4.228% |
Direct Graduate PLUS Loan | 4.228% |
Loan fees are subtracted from your loan prior to the funds being paid to the university. This means the lesser amount is what is actually disbursed to your university bill.
Direct Loans
DIRECT SUBSIDIZED LOAN
The Direct Subsidized Loan is awarded on the basis of need. You will not be charged any interest while you are in school (at least half-time) or in a grace or deferment status.
The new Moving Ahead for Progress in the 21st Century Act (MAP-21) regulation is going into effect for first time borrowers on or after July 1, 2013. The regulation states that borrowers are no longer eligible to receive additional Direct Subsidized Loans if the period during which the borrower has received such loans meets or exceeds 150 percent of the published length of the program in which the borrower is currently enrolled.
DIRECT UNSUBSIDIZED LOAN
The Direct Unsubsidized Loan is not awarded on the basis of need. The borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues through the life of the loan.
All first time borrowers must complete the Master Promissory Note (MPN) and Entrance Counseling at www.studentaid.gov.
Direct PLUS Loan
Direct Parent PLUS Loans are available to credit-worthy parents of dependent students who enroll at least half time (six credit hours per semester) and are meeting Satisfactory Academic Progress (SAP).
Criteria for Eligibility:
- Available to the parent of a dependent age undergraduate student enrolled at least half-time (6 units).
- A credit check is required.
- Please note: If you have your account on a credit freeze, please contact Transunion and Equifax to lift the hold for two weeks before you apply.
- The student must complete a FAFSA each academic year.
- Must reapply for the Plus loan for any future academic years.
Steps to Apply:
- Create or Locate your FSA ID Username or Password
- Choose: Parent PLUS application.
- Complete the application and proceed to decision results
- Complete the Parent Authorization Form.
Steps After You Apply:
Read the results page carefully for next steps.
If approved, complete the Master Promissory Note and Entrance Counseling. The credit decision is only valid for 6 months after the date of the application. If you would like to increase the loan after the 6 months, you must reapply.
If denied, the applicant must decide how to move forward. If a dependent student would like to request the additional unsubsidized loan and the parent selected options 1,2, or 4, the parent must submit a signed statement to the financial aid office indicating they will not pursue an Endorser or Appeal the credit decision.
- I want to obtain an endorser.
- This option requires the applicant to find a credit-worthy cosigner to complete an Electronic Endorser Addendum. The endorser will determine the amount of the loan. Only the endorser can increase the loan amount by completing a new addendum within the 6 months the credit decision is till active.
- Applicant must complete PLUS Credit Counseling
- Applicant must complete a Master Promissory Note (MPN)
- After all steps are completed, the student or applicant must notify the financial aid office that the requirements have been met to proceed with processing the loan.
- I want to provide documentation of extenuating circumstances.
- This option requires the applicant to Appeal Credit Decision
- If approved the applicant must complete Plus Credit Counseling
- The applicant must complete a Master Promissory Note (MPN)
- After all steps are completed, the student or applicant must notify the financial aid office that the requirements have been met to proceed with processing the loan.
- I do not want to pursue a Direct Plus Loan at this time.
- An undergraduate dependent student may be eligible for an additional $4,000 of Federal Direct Unsubsidized Loan. To request the additional loan, the student must notify the financial aid office via their Jagwire email account. The additional loan will be offered and can be accepted through the portal by following these instructions.
- Undecided.
- No action is taken.
FAQ's
- Can both parents apply for a plus loan in the same year? Yes, if the parents would like to split the responsibility of financing, they may apply using separate applications.
- More FAQ's
Graduate PLUS Loan
The Federal Direct Graduate PLUS (Grad PLUS) loan is an affordable, low interest loan for graduate and professional students. You can borrow up to the total cost of attendance (minus any other financial aid awarded). If you are denied the Graduate PLUS loan due to an adverse credit history, you will not be eligible for any additional Unsubsidized Direct Loan.
Criteria for Eligibility:
- Available to the graduate student enrolled at least half-time (6 units).
- A credit check is required.
- Please note: If you have your account on a credit freeze, please contact Transunion and Equifax to lift the hold for two weeks before you apply.
- The student must complete a FAFSA each academic year.
- Must reapply for the Plus loan for any future academic years.
Steps to Apply:
- Create or Locate your FSA ID Username or Password
- Choose: Graduate PLUS application.
- Complete the application and proceed to decision results
Steps After You Apply:
Read the results page carefully for next steps.
If approved, complete the Master Promissory Note and Entrance Counseling. The credit decision is only valid for 6 months after the date of the application. If you would like to increase the loan after the 6 months, you must reapply.
If denied, the applicant must decide how to move forward.
- I want to obtain an endorser.
- This option requires the applicant to find a credit-worthy cosigner to complete an Electronic Endorser Addendum. The endorser will determine the amount of the loan. Only the endorser can increase the loan amount by completing a new addendum within the 6 months the credit decision is till active.
- Applicant must complete PLUS Credit Counseling
- Applicant must complete a Master Promissory Note (MPN)
- After all steps are completed, the student or applicant must notify the financial aid office that the requirements have been met to proceed with processing the loan.
- I want to provide documentation of extenuating circumstances.
- This option requires the applicant to Appeal Credit Decision
- If approved the applicant must complete Plus Credit Counseling
- The applicant must complete a Master Promissory Note (MPN)
- After all steps are completed, the student or applicant must notify the financial aid office that the requirements have been met to proceed with processing the loan.
- I do not want to pursue a Direct Plus Loan at this time. You are not eligible for any other federal aid.
Frequently Asked Questions
Why do I have to repay a Federal Direct Loan?
What are loan fees?
If I only want to apply for a loan, why do I have to complete the FAFSA?
What is the minimum number of credit hours in which I have to be enrolled to receive Federal Direct Loans?
How do I apply for a Subsidized and/or Unsubsidized Loan?
How do my parents apply for a Parent PLUS Loan?
How do I apply for a Grad PLUS Loan?
What if I'm a first time loan borrower? When will my loan be released?
If the first disbursement isn't released until the 30th day after the start of classes, am I responsible for paying for classes up front?
When will my Direct Unsubsidized loan and Subsidized loan begin to accrue interest?
What are my repayment options?