Interest rate for Subsidized Direct Loans is a fixed 6.0% for 2008-09 for undergraduates.
Interest rate for Unsubsidized Direct Loans is a fixed 6.8% for 2008-09 undergraduates and graduate students.
Interest rate for Subsidized Direct Loans is a fixed 6.8% for 2008-09 for graduate students.
Complete Entrance/Exit Counseling online
http://www.dlssonline.com/exitcounseling/ecec-main.asp
Complete Direct Loan Master Promissory Note online
https://dlenote.ed.gov/empn/index.jsp
Subsidized Loan versus Unsubsidized Loan
Similarities - Must complete the FAFSA
- Repayment of principal and interest begins after graduation, less than half-time enrollment or withdrawal from school
- Following separation from school, a one-time six month grace period without payment follows separation from school
- No credit check or cosigner required
- No prepayment penalty
Differences - Unsubsidized loans have interest that accrues while the student is in school. While payment is not required when the student is in school or in a grace period, the OFA encourages students to pay part or all of the quarterly charge. When a student does not elect to pay quarterly interest, it capitalizes (is added to loan principal.)
- Subsidized loans do not accrue interest while the student is in school or in a grace period. If a student elected to pay the entire amount borrowed while in school, he would only pay loan principal.
- Subsidized loans require that a student demonstrate need for the amount borrowed.
- Unsubsidized loans are more flexible: loans, gift aid and resources must be equal to or less than the cost of attendance.
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