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Loan Terms
Federal Loan Terms for 2010 — 2011
FEDERAL DIRECT STAFFORD LOAN
Subsidized or Unsubsidized: determined by the FAFSA.
Subsidized Stafford Loan: need-based; the government pays the interest while the student is in school.
Unsubsidized Stafford Loan: student is responsible for the interest while in school; interest can be paid quarterly or capitalized and added to the loan principal until after the borrower ceases to be enrolled at least halftime.
Annual Loan Amount:
- Dependent Bachelor’s Plus Students: up to $7,500
- Independent Bachelor’s Plus and Teacher Licensure Students: up to $12,500
- Graduate Students: up to $20,500
Interest Rate:
| Graduate | Bachelor's Plus/Teacher Licensure | |||
| Date Borrowed | Subsidized Rate | Unsubsidized Rate | Subsidized Rate | Unsubsidized Rate |
| 7/1/06-6/30/08 | 6.8% | 6.8% | 6.8% | 6.8% |
| 7/1/08-6/30/09 | 6.8% | 6.8% | 6.0% | 6.8% |
| 7/1/09-6/30/10 | 6.8% | 6.8% | 5.6% | 6.8% |
| 7/1/10-6/30/11 | 6.8% | 6.8% | 4.5% | 6.8% |
| 7/1/11-6/30/12 | 6.8% | 6.8% | 3.4% | 6.8% |
| 7/1/12 & beyond | 6.8% | 6.8% | 6.8% | 6.8% |
As of July 1, 2006, Stafford Loan interest rates are fixed
Prior to July 1, 2006 Stafford Loans have variable interest rates, capped at 8.25%; with rate adjustment on July 1 every year
Loan Fees: reduce loan proceeds by .5% to determine amount that will credit to your account (i.e. if loan is $5,000, amount credited is $4,975).
Repayment: begins six months after the student ceases to be enrolled at least halftime; several repayment options available; the standard plan provides up to 10 years for repayment. Further information regarding repayment options, loan deferment and loan forgiveness programs is available at www.studentloans.gov.
FEDERAL DIRECT GRADUATE PLUS LOAN
- Loan Amount: up to the cost of education minus any other financial aid.
- Interest Rate: interest is fixed at 7.9%
- Loan Fees: reduce loan proceeds by 2.5% to determine amount that will credit to student's account (i.e. if loan is $10,000, amount credited is $9,750).
- Approval: a credit check is completed by the federal government when loan is processed. Student will be notified whether the loan is approved.
- Repayment: deferred while student is enrolled at least half-time. Interest will accrue and may be paid while in school or added to the principal when the student is no longer enrolled.
FEDERAL DIRECT PARENT PLUS LOAN
(For parents of Dependent Bachelor’s Plus students only)
- Loan Amount: up to the cost of education minus any other financial aid.
- Interest Rate: as of July 1, 2006, interest was fixed at 7.9% on the Federal Direct Parent Loan. (Loans borrowed for academic terms prior to that time have variable interest rates, capped at 9%; with rate adjustment on July 1 every year
- Loan Fees: reduce loan proceeds by 2.5% to determine amount that will credit to student's account (i.e. if loan is $10,000, amount credited is $9,750).
- Approval: a credit check is completed by the federal government when loan is processed. Parent will be notified whether the loan is approved. If credit is denied, dependent student will be awarded an additional Unsubsidized Stafford loan of $5,000.
- Repayment: begins two months after the loan is fully disbursed. However, please note that payments on Federal Parent PLUS Loans disbursed July 1, 2008, or after, may be deferred upon request while the student is enrolled at least half-time. Interest will accrue and may be paid or added to the principal when the child is no longer enrolled.