Loan Fact Sheet
| FEDERAL DIRECT SUBSIDIZED | FEDERAL DIRECT UNSUBSIDIZED | FEDERAL DIRECT PARENT PLUS | |
|---|---|---|---|
| Application Process | Direct Loan Application | Direct Loan Application | Direct Parent PLUS Loan Application |
| Borrower | Dependent or Independent Undergraduate Student | Dependent or Independent Student | Parent of Dependent Undergraduate Student |
| Interest Rates (2023-24) |
Fixed 5.490% | Fixed 5.490% for undergraduates; 6.079% for graduate students | Fixed 8.050% |
| Principal Deferred | Yes | Yes | Possible while student is in school - contact your servicer for details. |
| Interest Deferment Options | Yes. The government pays the interest while borrower is in school. | Yes. Interest accrues during the deferment period. Students have the option to pay loan interest while in school; if the interest is not paid, it will be added to the principal loan balance. | Interest accrues during the deferment period. Students have the option to pay loan interest while in school; if the interest is not paid, it will be added to the principal loan balance. Possible while student is in school. Contact your servicer for details. |
| Grace Period | 6 MonthsInterest still paid by the federal government. Repayment of loan begins after the grace period. | 6 Months Borrower is responsible for interest accrued during in-school and grace periods. Repayment of loan begins after grace period. |
Possible while student is in school - contact your servicer for details. |
| Annual Loan Maximums | Year 1 = $3,500Year 2 = $4,500 Year 3-5 = $5,500 Depends on financial need |
Dependent Students: up to - Year 1 = $5,500 Year 2 = $6,500 Year 3-5 = $7,500 Less amount received in Subsidized loan. Independent Students*: Same as above plus an additional amount: Year 1-2 = $4,000; Year 3-5 = $5,000 |
Cost of Education Less Any Other Financial Aid |
| Annual Loan Maximum - Graduate/MBA | N/A | $20,500 | N/A |
| Standard Length of Repayment | 10 Years | 10 Years | 10 Years |
| Fees Deducted | 1.057% | 1.057% | 4.248% |
| Credit Check Required | No | No | Yes* |
| Based on Need | Yes | No | No |
*Dependent students whose parents cannot borrow under the Direct Parent PLUS Loan Program due to an adverse credit history are eligible for the additional Independent Student Loan Funds. Please contact our office for more information.