Federal Direct Student Loan Program

The Federal Direct Student Loan Program provides funding to help students pay part of their own school costs.  The loan is made to you, the student, and you are responsible for repayment of this debt.  The Direct Loan carries a variable interest rate, set annually with a cap of 8.25%.

Federal Direct Loans are available both as subsidized and unsubsidized loans. Subsidized loans are offered to students based on demonstrated financial need. The interest on subsidized loans is paid by the federal government while the student is in school and during authorized deferment. For unsubsidized Stafford Loans, the student is responsible for all of the interest that accrues while enrolled in school. The interest may be deferred throughout enrollment. Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal.) The interest rate on the loan is variable, but will not exceed 8.25%. There is an origination fee charge on the loan. Loan repayment begins at the end of the student’s grace period. The grace period is 6 months after a student graduates or leaves school, although loan payments can be made at any time.

Loans may be a combination of subsidized and unsubsidized but no more than yearly loan limits.

Federal Direct Loan terms and conditions:
The terms and conditions of Federal Direct Loans are set by the federal government. Current Direct Loan interest rates and fees are as follows:

2012 - 2013 Academic Year:
Undergraduate Subsidized: 6.8% interest rate, 0.5% fee*
Undergraduate Unsubsidized: 6.8% interest rate, 0.5% fee*

*The official 2012 - 2013 fee is 1.0% and currently there is a fee rebate of .5%.

More information on Federal Direct Loans.