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Federal Loan Opportunities

Federal Loan Options

Federal Direct Subsidized Loan

  • 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, 2014  and June 30, 2015 is 4.66%
  • 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
  • origination fee for all loans first disbursed on or after December 1, 2013 and before October 1, 2014: 1.072%
  • origination fee for loans first disbursed on or after October 1, 2014 and before October 1, 2015: 1.073%
  • annual loan limits are based on credits earned:
    $3,500, 0-29.99 credits;
    $4,500, 30-59.99 credits;
    $5,500, 60+ credits;
  • first time borrowers must complete Direct Loan Entrance Counseling and Master Promissory Note at https://studentloans.gov/myDirectLoan/index.action

Federal Direct Unsubsidized Loan

  • 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 undergraduate students is 4.66%
  • fixed interest rate for Direct Unsubsidized Loans for graduate/professional students is 6.21%
  • interest accrues during in-school and deferment periods which may be paid or capitalized (added to principle at beginning of repayment)
  • origination fee for all loans first disbursed on or after December 1, 2013 and before October 1, 2014: 1.072%
  • origination fee for loans first disbursed on or after October 1, 2014 and before October 1, 2015: 1.073%
  • 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;
    $20,500 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

Federal Direct PLUS Loan

  • 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 7.21%
  • origination fee for all loans first disbursed on or after December 1, 2013 and before October 1, 2014: 4.288%
  • origination fee for loans first disbursed on or after October 1, 2014 and before October 1, 2015: 4.292%
  • 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 additional 6 months after the student graduates or drops below half-time enrollment. You must separately request each deferment period.
  • Federal Direct Parent PLUS Loan Application Process (PDF)
  • Federal Direct Parent PLUS Loan Requirements

Federal Direct Graduate PLUS Loan

  • 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 7.21%
  • origination fee for all loans first disbursed on or after December 1, 2013 and before October 1, 2014: 4.288%
  • origination fee for loans first disbursed on or after October 1, 2014 and before October 1, 2015: 4.292%
  • 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

 

 

 

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