Candidates or parents of dependent candidates may be eligible for the federal loans outlined on this page:
Federal Direct Loans
The William D. Ford Federal Direct Loan Program is a service of the US Department of Education. If you are eligible to borrow through the program, you do so at interest rates that are lower than those of many other education loans and have more favorable deferment, forgiveness, and cancellation options.
Federal Direct Stafford Loans
To be eligible for Federal Direct Stafford Loans, you must be enrolled at least half time—8 credits per term for fall or spring, 4 credits in summer—in courses that count toward your in your undergraduate, graduate, or health careers program.
To receive Federal Direct Stafford Loans, you must complete:
- Entrance counseling and sign a promissory note before disbursement can take place
- Exit counseling before leaving school
There are 2 types of Federal Direct Stafford Loans:
- Subsidized Direct Stafford Loan: The federal government pays the interest while you are enrolled in school at least half time and during the 6-month grace period after you are no longer enrolled at least half time (beginning July 1, 2012, the grace period interest subsidy will be eliminated). These loans are awarded based on financial need.
- Unsubsidized Direct Stafford Loan: You are responsible for the interest from the date of disbursement. You may pay interest quarterly or allow the interest to accrue.
Beginning July 1, 2008, the College Cost Reduction and Access Act of 2007 reduced the interest rate on subsidized Stafford loans for undergraduate students only. These reductions are not available to graduate students and do not pertain to unsubsidized Stafford loans. The interest rates are illustrated in the following table.
Phased-in Cuts in Interest Rates on Subsidized Stafford Loans for Undergraduate Students
Year |
Interest rate Subsidized Stafford Loans (undergraduate students) |
Interest rate Stafford Loans (graduate students and all unsubsidized loans) |
|---|---|---|
| 2007-2008 | 6.8% | 6.8% |
| 2008-2009 | 6.0% | 6.8% |
| 2009-2010 | 5.6% | 6.8% |
| 2010-2011 | 4.5% | 6.8% |
| 2011-2012 | 3.4% | 6.8% |
| 2012-2013 | 6.8% | 6.8% |
The US Department of Education deducts an origination fee of a half percent from the amount borrowed upon disbursement (beginning with loans first disbursed on or after July 1, 2012, the origination fee will increase to 1.5%).
Maximum Federal Direct Stafford Loan amounts
The US Department of Education sets borrowing limits that vary by your year in school and dependency status (see the chart below). Direct Stafford Loan amounts may not exceed financial need as calculated by the US Department of Education.
If you qualify for a subsidized loan that is less than the annual subsidized loan limit, you may receive an unsubsidized loan to cover the difference between the annual limit and the subsidized loan amount.
The chart below lists the maximum loan amounts for Federal Direct Stafford Loans that dependent candidates may borrow each term.
Maximum loan amounts for dependent candidates
| Candidate’s academic level | Maximum* subsidized | Maximum* combined total (subsidized and unsubsidized) |
|---|---|---|
| First-year undergraduate (fewer than 32 credits) | $1,750 | $2,750 |
| Second-year undergraduate (32 to 64 credits) | $2,250 | $3,250 |
| Third-year undergraduate or beyond (64 credits or more) |
$2,750 | $3,750 |
| Health careers candidate | $2,750 | $2,750 |
* Per term
Dependent candidates whose parents are denied a Parent PLUS Loan may be eligible for additional unsubsidized Stafford Loan.
The chart below lists the maximum loan amounts for Federal Direct Stafford Loans that independent candidates may borrow each term.
Maximum loan amounts for independent candidates
| Candidate’s academic level | Maximum* subsidized | Maximum* combined total (subsidized and unsubsidized) |
|---|---|---|
| First-year undergraduate (fewer than 32 credits) |
$1,750 | $4,750 |
| Second-year undergraduate (32 to 64 credits) |
$2,250 | $5,250 |
| Third-year undergraduate or beyond (64 credits or more) |
$2,750 | $6,250 |
| Health careers candidate | $2,750 | $6,250 |
| Graduate candidate | $4,250 | $10,250 |
* Per term
Total outstanding debt for Federal Stafford Loans
The US Department of Education maintains aggregate limits on your total outstanding Stafford Loan debt. The limits are as follows:
- $31,000 (no more than $23,000 of which can be subsidized) for dependent undergraduates
- $57,500 (no more than $23,000 of which can be subsidized) for independent undergraduates
- $138,500 (no more than $65,500 of which can be subsidized) for graduate students
Canceling or reducing Federal Direct Stafford Loans
You have the right to cancel or reduce the amount of your Federal Direct Stafford Loan. To do so, notify Student Financial Services in writing. If the loan has already been disbursed, you must return the funds to Student Financial Services.
Federal Direct PLUS Loans
Federal Direct Graduate PLUS Loans
The Federal Direct Graduate PLUS Loan Program is a federally guaranteed loan program for graduate candidates. You may apply for an amount up to your cost of attendance less any other financial aid you are receiving.
You must complete a FAFSA and be eligible for Stafford Loans before applying for the Graduate PLUS Loan. To apply:
- Complete a promissory note for the Direct Graduate PLUS Loan online. Please note that a credit check is part of the application process.
- Complete entrance counseling online
- Complete exit counseling online before leaving school
The interest rate is fixed at 7.9 percent. The US Department of Education deducts an origination fee of 2.5 percent from the amount borrowed upon disbursement (beginning with loans first disbursed on or after July 1, 2012, the origination fee will increase to 4%). Repayment begins 60 days after the loan is fully disbursed. Repayment can be deferred during periods of at least half-time enrollment.
Canceling or reducing Federal Direct Graduate PLUS Loans
You have the right to cancel or reduce the amount of your Federal Direct Graduate PLUS Loan. To do so, notify Student Financial Services in writing. If the loan has already been disbursed, you must return the funds to Student Financial Services.
Federal Direct Parent PLUS Loans
The Federal Direct Parent PLUS Loan Program is a federally guaranteed loan program for parents of dependent candidates. Your parents may apply to borrow an amount up to the cost of attendance, less any other financial aid you are receiving.
The interest rate for new loans is 7.9 percent. The US Department of Education deducts an origination fee of 2.5 percent of the amount borrowed upon disbursement (beginning with loans first disbursed on or after July 1, 2012, the origination fee will increase to 4%). Repayment begins 60 days after the loan is fully disbursed. Repayment may be deferred while the dependent candidate is enrolled at least half time.
For your parent to be eligible to apply for a PLUS Loan, you must be:
- Admitted to an undergraduate program or Health Careers Program
- Enrolled at least half time (8 credits in the fall or spring term)
- Classified as dependent by the US Department of Education
If your parent wishes to apply for a PLUS Loan, you must submit a complete financial aid application, including the FAFSA. You and your parent must complete a promissory note for the Parent PLUS Loan and inform Student Financial Services when you have done so. See the online Parent PLUS Loan promissory note.
Canceling or reducing Federal Direct Parent PLUS Loans
Your parent has the right to cancel or reduce the amount of his or her Federal Direct Parent PLUS Loan. To do so, your parent should notify Student Financial Services in writing. If the loan has already been disbursed, your parent must return the funds to Student Financial Services.
Federal Perkins Loan
This federal loan has a 5 percent fixed interest rate. No interest is charged while you are in school at least half time and during the 9-month grace period that begins when you leave school or are enrolled less than half time. Perkins Loans are offered to undergraduate candidates with exceptional.
Annual borrowing limits
- $5,500 for undergraduate candidates
Aggregate borrowing limits
- $27,500 for undergraduate candidates
To receive Federal Perkins Loans, you must complete:
- Entrance counseling and sign a promissory note before disbursement can take place
- Exit counseling before leaving school
Canceling or reducing Federal Perkins Loans
You have the right to cancel or reduce the amount of your Federal Perkins Loan. To do so, notify Student Financial Services in writing. If the loan has already been disbursed, you must return the funds to Student Financial Services.