Federal Direct Loan
Students who demonstrate need for a portion or all of the annual limit will receive
a subsidized loan and the federal government will pay the interest for the period
of time in which the student is eligible for an in-school deferment.
- Students who do not demonstrate need for part or all of the annual borrowing limit
may still receive an unsubsidized loan and pay their own interest during the time
they are in-school.
- The annual limit for a student in the first year of undergraduate study is $9,500,
prorated for the program length.
- The annual limit for a student in the second year of study is $10,500.
- Repayment begins six months after the borrower graduates, withdraws from college,
or drops below half-time status.
Federal Direct Plus
The Federal Direct PLUS loan is available to parents of dependent students wishing
to borrow on behalf of their dependent in order to meet the cost of attendance.
- The annual borrowing limit is the difference between the cost of attendance and the
estimated financial assistance.
Financial Aid TV Loan Topics
Frequently Asked Questions
Q. What do I do once I take out a student loan?
Before taking out your first loan, you must complete an entrance counseling online
that explains your rights and responsibilities as a borrower. Once you take out a
loan, it is important that you keep your college informed of any changes in your address
or enrollment plans. Before you leave college (including withdrawing, transferring
or graduating), you should complete an exit interview online which will cover your
payment obligations and the number of options available to you as a borrower. If at
any time you have questions regarding the repayment of your loans, contact your lender
or the Financial Aid Office.
Q. I was offered a loan, but I'm not sure I should take it; how do I decide?
Because of the limited gift aid available, students are usually offered one or more
educational loans. Although loans are helpful in meeting the cost of education, they
must be repaid with interest. Therefore, carefully consider the amount you are borrowing.
Remember, the amount you borrow this year will be added to other loans you have or
will be taking out in the future. You may want to look at your budget and see if there
are ways you can minimize your borrowing. Also, consider the differences in loans,
such as the interest rate, when that rate is assessed, the amount you'll be borrowing
and repayment options.
Q. Can my parents and I both apply for loans?
Yes. Loans are available for both parents and students. Parents may borrow for their
undergraduate students through the PLUS loan program. However, the total amount borrowed
(by both you and your parents), cannot exceed the cost of your education.
Q. Are my parents responsible for my educational loans?
No. However, parents are responsible for the Federal PLUS loans. Parents will only
be responsible for your educational loans if you are under 18 and they co-sign your
loan. In general you and you alone are responsible for repaying your educational loans.
Q. If I take a leave of absence, do I have to start repaying my loans?
Not immediately. The subsidized Stafford loan has a grace period of 6 months before
the student must begin repaying the loan. When you drop below half-time enrollment
you will not have to repay your loan until the grace period is used up. If you use
up the grace period, however, when you graduate you will have to begin repaying your
loan immediately. It is possible to request an extension to the grace period, but
this must be done before the grace period is used up. If your grace period has run
out in the middle of your leave of absence, you will have to start making payments
on your student loans.