Federal Loan Opportunities

Federal Loan Options

long-term federal student loan that must be repaid
fixed interest rate for Direct Subsidized Loans for undergraduates with a first disbursement date between July 1, 2010 and June 30, 2011 is 4.5%
fixed interest rate for Direct Subsidized Loans for undergraduates with a first disbursement date between July 1, 2011 and June 30, 2012 is 3.4%
fixed interest rate for Direct Subsidized Loans for graduate students is 6.8%
federal government pays the interest on subsidized loans while the student is enrolled in school and during the six-month grace period after graduation or withdrawal from school
available to students who demonstrate financial need
0.5 % fee will be deducted from the loan at time of disbursement
annual loan limits are based on credits earned:
$3,500, 0-29.99 credits;
$4,500, 30-59.99 credits;
$5,500, 60+ credits;
$8,500, graduate students
first time borrowers must complete Direct Loan Entrance Counseling and Master Promissory Note at https://studentloans.gov/myDirectLoan/index.action
Direct Loan Brochure

long-term federal student loan that must be repaid
allows all students, regardless of need, to obtain a federal student loan
fixed interest rate for Direct Unsubsidized Loans for all students is 6.8%
interest accrues during in-school and deferment periods which may be paid or capitalized (added to principle at beginning of repayment)
0.5% origination fee deducted proportionally from each disbursement
annual loan limits are the same as for Federal Ford Direct Subsidized Loan (above)
students who are independent or who are dependent and whose parents are denied a Federal Direct PLUS Loan, may borrow additional amounts up to:
$4,000, for each of the freshman and sophomore years;
$5,000, for each of the junior and senior years;
$12,000 for the graduate years
combination of all financial aid and outside resources cannot exceed cost of attendance
first time borrowers must complete Direct Loan Entrance Counseling and Master Promissory Note at https://studentloans.gov/myDirectLoan/index.action
Direct Loan Brochure

federal credit-based loan administered by the U.S. Department of Education
available through UMD to parents of undergraduate, dependent students
annual loan limit is the cost of education minus any aid received (or eligible for)
fixed interest rate of 7.9%
4% origination fee deducted proportionally from each disbursement
repayment begins 60 days after second disbursement
may defer repayment of Direct PLUS Loans while the student for whom the loan was obtained is enrolled at least half-time, and for an additonal 6 months after the student graduates or drops below half-time enrollment. You must separately request each deferment period.
parent must first submit a UMass Dartmouth Federal Direct Loan Pre-Application to Financial Aid Services to start the application process:

Federal Direct Parent PLUS Loan application for 2011-2012 (including Summer 2012)

If Federal Direct PLUS Loan Pre-Application is approved, parent who completed pre-application must complete Master Promissory Note (Parent PLUS) at https://studentloans.gov/myDirectLoan/index.action

federal credit-based loan administered by the U.S. Department of Education
available through UMD to graduate students
annual loan limit is the cost of education minus any aid received (or eligible for)
fixed interest rate of 7.9%
4% origination fee deducted proportionally from each disbursement
repayment begins 60 days after second disbursement but students may apply for an in-school deferment
student must submit a Federal Direct PLUS Loan for Graduate Students Pre-Application to Financial Aid Services to start the application process:

Federal Direct Graduate PLUS Loan Application for 2011-2012 (including Summer 2012)

If Federal Direct PLUS Loan Pre-Application is approved, student must complete Master Promissory Note (Graduate PLUS) at https://studentloans.gov/myDirectLoan/index.action

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