Federal Student Loan Programs
Federal Direct Loans
Federal Direct Loans are low-interest loans made to students attending college at least half-time (6 credits or more). Loans are made by the federal government and must be repaid.
Students can qualify for a Direct Loan based upon financial need, as determined by the FAFSA. These need-based loans (known as “subsidized”) offer in-school interest subsidies by the federal government. In addition, students may qualify for non-need-based Direct Loans (known as “unsubsidized.”) These loans do not offer interest subsidies. It is possible for students to be awarded both subsidized and unsubsidized Direct Loans within an academic year.
Loan Limits and Interest Rates
An undergraduate student may borrow a combined total from both the subsidized and the unsubsidized Federal Direct Loan Programs up to
- $3,500, if the student is in his/her first academic year and is enrolled in a program of study that encompasses a full academic year.
- $4,500, if the student has completed the first academic year (earned 30 credits or more) and the remainder of the program of study encompasses a full academic year.
If the student is a new borrower, the interest rate is a fixed rate determined annually. From July 1, 2018 through June 30, 2019, the interest rate for subsidized and unsubsidized Federal Direct Loans is 5.05%.
Application: The FAFSA must be completed each academic year. In addition, a separate Student Loan Request form, promissory note and entrance interview must be completed. Loan requests can be in obtained in Financial Aid.
Additional Federal Direct Loan Limits
Independent, undergraduate students (and dependent students whose parents do not qualify for a federal PLUS loan) who are enrolled at least half-time are eligible for unsubsidized Direct Loans of up to $6,000 for the first and second year of study.
Dependent undergraduate students who are enrolled at least half-time are eligible for unsubsidized Direct Loans of up to $2,000 for the first and second year of study.
Application: Same as the Federal Direct Loan Program.
Federal Direct Parent Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans are for parents who wish to borrow to help pay for their child’s education. These loans enable parents with good credit histories to borrow money for each dependent child who is enrolled at least half-time. In cases of divorce or separation, either parent may borrow on behalf of the student.
Application: Students must complete the FAFSA. Information and Parent PLUS Loan Request forms are available online and in Financial Aid.
NOTE: Financial Aid can refuse to certify a student’s Direct Loan application, or can certify a loan for an amount less than the student would otherwise be eligible for, if the College documents the reason for its actions in writing. The College’s decision is final, and cannot be appealed to the U.S. Department of Education.