Graduate Direct Loans
The Federal Direct Loan is available through the the Federal Direct Loan Program to help both undergraduate and graduate students pay for their education.
There are two types of Direct Loans--subsidized and unsubsidized.
This loan is available to students regardless of income or need. With an unsubsidized loan, you are responsible for all interest that accrues during in-school, grace and deferment periods. You may choose to pay the interest portion only while in school, which would keep your loan balance at principal. If you choose to defer such payments, the interest will be capitalized, resulting in an increase in both total debt and the amount of monthly payments.
Loans are usually issued for a single academic year, and both eligibility and amount are redetermined annually throughout your academic career.
Your Direct loan eligibility is determined by the Office of Financial Aid and is based on information you provided in the Free Application for Federal Student Aid (FAFSA).
Federal criteria include:
Borrowing limits are based on your dependency status and year in school. You are considered independent if you will be working on a degree beyond a bachelor's degree during the school year.
You can never borrow more than the cost of education, less other financial aid received (special rules apply for recipients of Montgomery Chapter 30 VA benefits and Americorps benefits). Below are the maximum amounts you may borrow.
As a graduate student, your unsubsidized Direct loan annual eligibility is as follows:
The cumulative maximum amount that may be borrowed as an undergraduate is $23,000 for a dependent and $57,500 for an independent student. The cumulative combined maximum for both undergraduate and graduate loans is $65,500 for subsidized only and $138,500 for unsubsidized and subsidized combined.
The interest rate is fixed at 6.8%.
For all Direct Loans made between July 1, 2012 and June 30, 2013, the origination fee will be 1.00% of the principal loan amount.
Here's a step-by-step guide to the Direct loan application process:
An Electronic Funds Transfer (EFT) will be sent directly to our school. The amount of the proceeds will be the loan amount less the fees. Funds will credit first to your Bursar bill and any excess funds will be mailed to your permanent address or directly deposited to your personal account.