Direct Loan Program

The William D. Ford Federal Direct Loan

Program offers low interest loan options for eligible students to help cover the cost of higher education. Any federal student loans that the student is eligible for will be offered in the student’s financial aid package.

Subsidized Loan Eligibility for New Borrowers on or after July 1, 2013:

If you are a new undergraduate borrower on or after July 1, 2013, please familiarize yourself with the new federal regulations regarding a limit on the maximum period of time that you can receive Direct Subsidized Loans. A new borrower is defined as a student having no subsidized or unsubsidized loan balances as of July 1, 2013, or on the date the borrower obtains a Direct Loan after July 1, 2013. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program of study. For more information, please review the U.S. Department of Education Federal Student Aid announcement concerning this time limitation.

Who may be eligible for this loan?

Students enrolled at least half time in an eligible program of study, who:
  • Are U.S. citizens or eligible non-citizens.
  • Are not in default on any federal educational loans.
  • Have not already borrowed more than the aggregate federal direct loan limit for their program.
  • Meeting SAP.
  • Enrolled half time.

Types of Federal Direct loans?

  • Direct Subsidized Loan – This loan is for students with financial need as determined by the FAFSA. Students receiving a federal subsidized loan are not charged interest on this loan amount while they are in school or in grace and deferment periods.
  • Direct Unsubsidized loan – All eligible students can borrow an unsubsidized loan, regardless of financial need. This loan type does accrue interest while the student is in school, as well as in grace and deferment periods.

How do I apply?

How much can I borrow?

Dependent Undergraduate Students

Annual loan limits:

  • $5,500 (Freshmen)(No more than $3,500 of this amount may be subsidized)
  • $6,500 (Sophomore) (No more than $4,500 of this amount may be subsidized)
  • $7,500 (Junior and Senior) (No more than $5,500 of this amount may be subsidized)

Aggregate loan limit:

  • $31,000 (No more than $23,000 of this amount may be subsidized)

Independent Undergraduate Students

Annual loan limits:

  • $9,500 (Freshmen)(No more than $3,500 of this amount may be subsidized)
  • $10,500 (Sophomore) (No more than $4,500 of this amount may be subsidized)
  • $12,500 (Junior and Senior) (No more than $5,500 of this amount may be subsidized)

Aggregate loan limit:

  • $57,500 (No more than $23,000 of this amount may be subsidized)

Graduate and Professional Students

Annual loan limits:

  • 20,500 (No longer grad subsidized).

Aggregate loan limit:

  • $138,500 (No more than $65,500 of this amount may be subsidized) (Includes total Federal Direct and Stafford loans borrowed in all programs, graduate and undergraduate).

Is the FAFSA required?

Yes, the student must submit the FAFSA in order to receive these loans.

Is a credit check required?

No, the student is eligible for these loan types if they are otherwise eligible for aid and are enrolled at least half-time.

Current Interest Rate

6.8% (Interest accrues during all periods for the Federal Unubsidized loan (in-school, forbearance, and repayment) beginning on the first date of disbursement. Interest does not accrue for the Federal Subsidized loan until repayment begins.

Current Origination Fee

1.0%

Repayment Information

After the student graduates, leaves school, or drops below half-time enrollment they will have a 6 month grace period before repayment begins. After the grace period ends, the student will begin making monthly payments to the loan servicer. There are different repayment plans for your federal loans, and you may choose one that best fits your income. You may be able to estimate your monthly payment amounts using a Loan Repayment Calculator

Contact Information

For more information on the Federal Parent PLUS loan, please visit the Department of Education website, or contact Student Financial Aid (806-742-3681). To view your complete federal loan history, please visit the National Student Loan Database (NSLDS)