Information on the Programs

Q. What is the interest rate and fees charged in Direct Lending?

A. See chart below for the 2011-2012 interest and fees.




Federal Subsidized Stafford Undergraduates



Federal Unsubsidized Stafford Undergraduates



Federal Subsidized/ Unsubsidized Stafford Graduates



Federal Parent PLUS



Federal Graduate PLUS



The Direct Lending Stafford Loan Program will have a 0.5% fee deducted from the loan amount. (Example: If you borrow $4500, you will actually receive $4477.50 or $22.50 less). Another 1.0% fee will be deferred until you go into repayment. You must make the first 12 on-time monthly loan payments to maintain this benefit. Otherwise, the 1.0% will be added to your loan balance.

Q. What types of Direct Loans are available?

A. Subsidized Stafford Loans are for students with financial need as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period, and during deferment periods.

Unsubsidized Stafford Loans are for students and are not based on financial need. Interest is accruing immediately during in-school, grace period and deferment. Interest accruing during these periods may be paid or capitalized.

PLUS Loans are available to credit-worthy parents of dependent undergraduate students. Parents may borrow the difference between the student’s total cost of education and all other aid the student is receiving.

PLUS Loans for Graduate Students are a vailable to credit-worthy Graduate stu­dents. You may borrow the difference between the total cost of education and all other aid received. You are required to first utilize the Direct Stafford Loan Program and complete a FAFSA.

Consolidation Loans allows students or parents to combine one or more of your federal education loans into a new loan that offers several advantages such as one monthly payment, flexible repayment options, or reduced monthly payments.  Before making a decision to consolidate your federal student loans, consider factors such as the affordability of your monthly payments, the number of payments you need to make to multiple lenders, the interest rates on each of your loans, and how much you are willing to pay over the long term. Parent PLUS Loans cannot be consolidated with the student’s Stafford Loans.

Q. What are the eligibility requirements?

A. You must be enrolled at least half-time at a school and you must meet general eligibility requirements for the Federal Student Aid (FSA) programs.

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