The Federal Direct Stafford Loan Program includes both need based and non-need based low interest, non-credit based loans. In addition to the student loan program, the PLUS loan program is a credit-based loan for parents of dependent undergraduate students. The Perkins Loan program is a low interest loan for students with exceptional need. The GradPlus loan is a credit-based loan for graduate students.
All federal loans require students to submit a FAFSA annually.
Detailed information regarding student loans is included in the Financing Plan Packet.
Federal Direct Student Loans: If a Federal Direct Student Loan is included as part of your financial aid package, most students find that overall, federal loans are a better choice compared to nonfederal loans . The borrower benefits and protections including repayment schedules, deferment, forbearance and cancellation options, interest rates and consolidation programs offered by the federal loan programs are typically more favorable than alternative loans from private lenders.
Subsidized: (undergraduate students only) Fixed interest rate of 6.8% for loans disbursed July 1, 2012 and later. Interest does not accrue while the student is enrolled.
Unsubsidized: Fixed interest rate of 6.8%. Interest starts to accrue from date of disbursement, but may be deferred.
Parent PLUS: Fixed interest rate of 7.9%. Interest starts to accrue from date of disbursement. A parent borrower may request to defer principal and interest payments while the student is enrolled at least half-time time and for 6 months following the end of enrollment, by contacting their loan servicer.
Federal Perkins Loan: Fixed interest rate of 5%. Interest does not accrue while in school at least 1/2 time. 9 month grace period and 10 year repayment period. Loan is repaid to the school. Awarded to full-time undergraduate students who are Pell eligible, demonstrate exceptional need and submit a written appeal requesting additional assistance or a Special Circumstances Appeal Form. Students must be eligible for a Pell Grant. Award amounts range from $1,000 - $5,500 and are renewable based on the availability of funding.
Graduate PLUS: Fixed interest rate of 7.9%. Interest is charged from the date of disbursement. Contact your servicer for an in-school deferment.
Direct Loan Servicer Information as of March 13, 2012:
The US Department of Education continues to add federal loan servicers. Some borrowers are being switched to new servicers. Borrowers can learn who their servicer is by signing in at www.nslds.ed.gov using their 4 digit PIN. It is suggested that borrowers create a log in for their loan servicer website and check the status of their accounts.
Updated servicer lists can be found at:
Great Lakes Educational Loan Services, Inc.
FedLoan Servicing (PHEAA)
Direct Loan Servicing Center (ACS)