Student Loans

William D. Ford Direct Federal Loans

Congress has passed and the President has signed the Bipartisan Student Loan Certainty Act of 2013, which ties federal student loan interest rates to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan.

The William D. Ford Federal Direct Loan Program provides loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution.
- Direct Subsidized Loans are for students with demonstrated financial need, as determined by the FAFSA. No interest is charged while a student is in school at least half-time. The interest rate for loans disbursed on or after July 1, 2013 is fixed at a rate of 3.86%.
- Direct Unsubsidized Loans are not based on financial need; interest is charged during all periods. The interest rate for loans disbursed on or after July 1, after July 1, 2013 is fixed at a rate of 3.86%.
- Direct Unsubsidized Loans for Graduate students is fixed at a rate of 5.41%.
- Direct PLUS loans for parents of undergraduate Dependent students is fixed at a rate of 6.41%.
- Students or parents seeking to receive a direct loan must have a valid master promissory note on record
- New students apply on-line at www.StudentLoans.gov and you will use your PIN number from the FAFSA to sign the master promissory note electronically. New students must also complete an "Entrance Counseling" and the "Financial Awareness Counseling" session to receive a Direct Loan. Both of these counseling modules may be found at www.StudentLoans.gov after you sign into the site. Students or parents with an active master promissory note (MPN) are not required to complete a new MPN.
- Direct Plus Loans are low-interest loans for parents of dependent students. Interest is charged during all periods, beginning on the date of your loan's first disbursement. Parents cannot have an adverse credit history; a credit check will be performed. Parents may apply on-line at www.StudentLoans.gov. Parents will also use their PIN number from the FAFSA to sign the master promissory electronically. The Interest rate for loans disbursed after July 1 2013 is 6.41%.

Fees are deducted from each loan disbursement you receive. This means the money you receive will be less than the amount you Actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Origination Fees: Most federal student loans have loan fees that are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow.

  • Subsidized/Unsubsidized fee is 1.072%
  • PLUS Loan fee is 4.288%

Academic year loan limits as determined by Federal guidelines are:
- Freshman: $5,500 - No more than $3,500 of this may be Subsidized Loans
- Sophomore: $6,500 - No more than $4,500 of this may be Subsidized Loans
- Junior: $7,500 - No more than $5,500 of this may be Subsidized Loans
- Senior: $7,500 - No more than $5,500 of this may be Subsidized Loans
- Graduate: $20,500 Unsubsidized loans only

If you are an independent undergraduate (as defined by federal regulations) or a dependent student whose parents are unable to secure a PLUS loan, you may borrow additional unsubsidized Direct Loan funds to the limits listed above. The academic year additional loan limits are:

1st Year
Undergraduates
2nd Year
Undergraduates
3rd Year
Undergraduates
4th Year
Undergraduates
$4,000 $4,000 $5,000 $5,000


Code of Conduct for Education Loans
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