Non-Need Based Federal Loans

William D. Ford Federal Direct Loans:

Students borrowing on or after July 1, 1999, will electronically sign a Master Promissory Note (MPN). The MPN can be used to make one or more loans for one or more academic years. This can be done at: http://dlenote.ed.gov. It will be used for all your loans over multiple academic years at the same school. A completed Promissory Note will enable the Financial Aid Office to request the disbursement of funds from the United States Department of Education. When planning loan financing, students should expect a 2 1/2 percent origination (2 percent for loans disbursed on or after July 1, 2008) and insurance fee deduction in funds (with an automatic 1.5% rebate) at the time of disbursement.

Federal Direct Unsubsidized Stafford Loan:
    • Not need-based.
    • Fixed interest rate of 6.8 percent for new borrowers.
    • Interest accrues during the in-school period.
    • Interest may be capitalized.
    • All students are eligible for a combined subsidized and unsubsidized loan award up to the maximum loan limits listed under "1. Federal Direct Subsidized Stafford Loan," to the left.
    • Independent students may be eligible for the following additional unsubsidized funds:
      $4,000 for freshmen/sophomores
      $5,000 for juniors/seniors
      $12,000 for graduate students
    • Students working towards teacher certification or preparatory classes for a graduate program are eligible for an additional $7,000.

Federal Direct Parent Loans for Undergraduate Students (PLUS)

    • Not need-based.
    • Available to parents of dependent students enrolled in at least 6 credit hours.
    • Parents may borrow up to the cost of education minus any other aid received per academic year.
    • Fixed interest rate of 7.9% for new borrowers.
    • Credit review must be completed to determine eligibility.
    • A 4 percent origination and insurance fee, plus an automatic rebate of 1.5 percent at time of disbursement.
    • Repayment begins 60 days after the loan is disbursed

*NEW* Federal Direct PLUS Loan for Graduate or Professional Students

  • Available to graduate or professional students enrolled in at least 6 credit hours.
  • Students may borrow up to the cost of education minus any other aid received per academic year.
  • Fixed interest rate of 7.9% for new borrowers.
  • Credit review must be completed to determine eligibility.
  • A 4 percent origination and insurance fee, plus an automatic rebate of 1.5 percent at time of disbursement.
  • Repayment begins 60 days after the loan is fully disbursed.
  • Students must have applied for the maximum loan eligibility from the Federal Direct Subsidized and Unsubsidized Stafford loans first.
  • Loans available starting July 1, 2006.
  • Frequently Asked Questions about Parent Loans for Graduate Students (PLUS)

The Department of Education's Office of Student Financial Assistance offers additional information about Ford Federal Direct Loans. Please go to www.dl.ed.gov for more information.