William D. Ford
Federal Direct Loan Program
participates in the William D. Ford Federal Direct Loan Program by offering
subsidized and unsubsidized Direct Student Loans (Direct Loans).
Direct Loans – subsidized or unsubsidized, are low-interest rate
loans made to students by the federal government.
loans are available to students who demonstrate financial need. The federal
government pays the interest on this loan while you are in college and
during deferment periods.
These loans are available to all eligible students and are not based on
financial need. You are responsible for all interest payments (or
capitalization of interest) from the date the loan is disbursed.
The interest rate:
As of July
1, 2013 the interest rate for subsidized loan is fixed at 3.86% for
subsidized loans disbursed from July 1, 2013 to June 30, 2014. The interest
rate for unsubsidized loans is fixed at 3.86%.
The loan amounts:
level one students (freshman) may borrow a base amount of $3,500 (subsidized
and/or unsubsidized); Grade level two students (sophomores) may borrow a
base amount of $4,500 (subsidized and/or unsubsidized) per academic year.
Loan amounts for one semester only are one-half (1/2) the maximum yearly
loan amount not to exceed need or cost of attendance.
To apply for a subsidized or unsubsidized loan,
first apply for federal financial aid via the FAFSA. All students applying
for a loan must complete “Entrance Counseling” before the processing of the
loan application and “Exit Counseling” when you cease to be
enrolled, graduate or drop below 1/2 time enrollment. Entrance and Exit counseling are required on a yearly basis.
deadline to submit a Federal Direct Student Loan application is December
2 , 2013 for the Fall 2013 semester, and May 19, 2014 for the
Spring 2014 semester. Tuition payments will not be deferred for Federal
Direct Student Loans. Loan funds will not be disbursed during the first 30
days of each semester for first year, first-time borrowers.
Limitation on Direct Subsidized Loan Eligibility:
for First Time Borrowers on or after July 1, 2013,
here for more information.
total borrowing is $15,000 or more,
in addition to
your student loan application, you will be required to provide a
budget worksheet with documentation of expenses and resources as well as an
educational plan based on your educational goal. The Financial Aid
Director has the discretion to deny a request for a student loan on a
If you wish to borrow
additional unsubsidized loan amounts above the base amount, you will
need to make an appointment with the Financial Aid Supervisor to discuss
Payment of principal (the amount borrowed) will not be
required while you are enrolled at least half-time. Regular monthly payments
on the principal (the amount borrowed) will begin six months after you leave school, drop
below half-time status, or graduate.
The 6-month Grace Period no
longer applies to the interest rate for Subsidized Stafford Direct loans.
Interest on Subsidized Direct Loans begins accruing immediately when the
student is no longer enrolled at least ½-time.
It may take up to ten years to repay the loan(s).
Deferment is available while enrolled at least half-time (6 or more units).
Once the initial grace period ends and repayment begins, deferment for
resumption of study requires half-time enrollment. Units cannot be combined
between two colleges for deferment purposes.
The following examples show typical monthly payments and total interest
charges for 6.80% loans of varying amounts, with typical repayment periods:
Total Loan Debt Number of Payments Monthly Payment Interest Charges Total Repaid
$3,500 $90 $50 $971 $4,471
$6,500 $120 $75 $2,476 $8,976
$10,500 $120 $121 $4.000 $14,500
$20,000 $120 $230 $7,619 $27,619
If you have defaulted on a student loan, you have some
options. Depending on which one you chose you may regain your eligibility
for financial aid, improve your credit and in some cases remove the default
status from your credit report.
For more detailed
information on all of your student loan options, including repayment and
consolidation, please visit Department of Education at
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