Student Loans

Federal Direct Subsidized Loan—This type of loan is based on the student’s financial need. The principal and interest are both deferred until six months after graduation or enrollment drops to less than six credit hours. (Students will not have to make Direct loan payments during deferment periods). The interest rate is fixed at 4.5% for loans disbursed between 7/1/10-6/30/11. Financial need is determined by information reported on FAFSA.

Federal Direct Unsubsidized Loan—This loan is similar to the Direct Subsidized Loan with three very important exceptions:

1. The interest rate is fixed at 6.8%
2. The interest must be paid quarterly while you are in school OR be capitalized over the life of your loan. (The principal is deferred until six months after graduation or enrollment below six credit hours)
3. A FAFSA must be filed but the loan is not based on a student’s financial need

Federal Direct Plus Loans—(Direct Parent Loans to Undergraduate Students), parents may borrow to help meet the cost of a college education. Both the principal and interest must be paid while the student is in school. The interest rate is fixed at 7.9%. The parent must have a good credit history to qualify. Financial need is not considered. The annual loan limits of a PLUS loan equal the total cost of attendance minus other financial aid.

Federal Direct Subsidized Loan—This type of loan is based on the student’s financial need. The principal and interest are both deferred until six months after graduation or enrollment drops to less than six credit hours. (Students will not have to make Direct loan payments during deferment periods). The interest rate is fixed at 4.5% for loans disbursed between 7/1/10-6/30/11. Financial need is determined by information reported on FAFSA.

Federal Direct Unsubsidized Loan—This loan is similar to the Direct Subsidized Loan with three very important exceptions:

1. The interest rate is fixed at 6.8%
2. The interest must be paid quarterly while you are in school OR be capitalized over the life of your loan. (The principal is deferred until six months after graduation or enrollment below six credit hours)
3. A FAFSA must be filed but the loan is not based on a student’s financial need

Federal Direct Plus Loans—(Direct Parent Loans to Undergraduate Students), parents may borrow to help meet the cost of a college education. Both the principal and interest must be paid while the student is in school. The interest rate is fixed at 7.9%. The parent must have a good credit history to qualify. Financial need is not considered. The annual loan limits of a PLUS loan equal the total cost of attendance minus other financial aid.