Need based loans for undergraduate and graduate* students who are US citizens or permanent residents. These loans are interest free while the student is enrolled at least half-time. Repayment begins 6 months after a Grace Period during which the student is not enrolled or is enrolled less than half-time. Interest also begins at the end of the 6 month Grace Period except for loans disbursed between July 1, 2012 and July 1, 2014.  Interest for these loans begin to accrue as soon as a student is no longer enrolled at least half time. 

Interest Rate for Undergraduate Students - 3.4% fixed interest rate for loans disbursed after July 1, 2011 and before June 30, 2012.  For loans made for the 2012-13 academic year which begins in September, the interest rate will be 6.8%. 

Interest Rate for Graduate* Students - 6.8% fixed interest rate (See note below)

Loan Fees - 0.5% deducted from the loan amount until June 30, 2012.  The fee will be 1% beginning July 1, 2012

*Important Change for Graduate Students

Effective for enrollment which begins after July 1, 2012, graduate students will not qualify for the subsidized loan and will be eligible only for Federal Direct Unsubsidized Loans and Grad PLUS. 

First Time Borrower Requirements

A Master Promissory Note (MPN) must be completed.  The MPN defines the conditions under which you are borrowing and the terms under which you agree to pay back the loan.  The MPN is generally required one time only (it is good for 10 years).

Direct Loan Entrance Counseling must be completed before loan funds are paid.  The purpose of the counseling is to ensure you fully understand your rights and obligations as a borrower.