Types of Aid
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% |
Visit for more information.
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?
Unlike grants and scholarships, loans are loans, not gifts, and must be repaid. -
What are loan fees?
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received. For example, an unsubsidized loan could have a fee of 1.1% while a PLUS loan could have a fee of 4.3%. -
If I only want to apply for a loan, why do I have to complete the FAFSA?
The FAFSA is used to determine eligibility for federal, state and institutional aid which includes grants, student loans and work-study eligibility. -
What is the minimum number of credit hours in which I have to be enrolled to receive Federal Direct Loans?
You must be enrolled in at least six (6) credit hours. If at any time you drop below the six hour minimum any portion of your loan that has not been released to you will be canceled and your lender will be notified. -
How do I apply for a Subsidized and/or Unsubsidized Loan?
1. Complete the FAFSA 2. Complete all JagWire requirements for financial aid 3. Complete the Student Loan entrance Counseling online: https://studentaid.gov/entrance-counseling/ 4. Complete the Master Promissory Note (MPN) online: https://studentaid.gov/mpn/ 5. Accept/Decline Loan amounts via JagWire -
How do my parents apply for a Parent PLUS Loan?
1. Student must have completed the FAFSA 2. Student must have completed all JagWire requirements for financial aid 3. Parent signs into studentaid.gov to apply for Parent PLUS https://studentaid.gov/plus-app/parent/landing 4. Complete the Parent PLUS Loan entrance Counseling https://studentaid.gov/app/counselingInstructions.action?counselingType=plus 5. Complete the Master Promissory Note (MPN) https://studentaid.gov/mpn/parentplus/landing 6. Student Accepts/Declines Parent Loan amounts via JagWire. 7. Parent Authorization Form must be submitted via JagWire. -
How do I apply for a Grad PLUS Loan?
1. Student must have completed the FAFSA 2. Student must have completed all JagWire requirements for financial aid 3. Student signs into studentaid.gov to apply for Grad PLUS https://studentaid.gov/plus-app/grad/landing 4. Complete the Grad PLUS Loan entrance Counseling https://studentaid.gov/app/counselingInstructions.action?counselingType=plus 5. Complete the Master Promissory Note (MPN) https://studentaid.gov/mpn/grad/landing 6/ Student Accepts/Declines Grad Loan amounts via JagWire -
What if I'm a first time loan borrower? When will my loan be released?
The earliest your loan can be released is after the 30th day of class of your first semester. -
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?
No. For first time loan borrowers only: as long as loan funds are in an Accepted status on your JagWire account, and all financial aid requirements have been satisfied, you will not have to pay up front. -
When will my Direct Unsubsidized loan and Subsidized loan begin to accrue interest?
Unsubsidized loans accrue interest at the point of disbursement. Subsidized loans are eligible for an interest subsidy during the six month grace period and the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six month grace period after the student is no longer enrolled at least half-time, or if the loan or loans are in a deferment stats. -
What are my repayment options?
The Direct Loan Program offers loan repayment plans designed to meet the needs of most borrowers. Direct Loans are funded by the U.S. Department of Education through your school and are managed by a loan servicer, under the supervision of the Department. The Direct Loan Program allows you to choose your repayment plan and to switch your plan if your needs change. To find out more about repayment options before receiving a Direct Loan, borrowers may contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or click on the link below for more information. If you currently have a Direct Loan and would like the exact payment amount on your loan, you can find it out by contacting your loan servicer.