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Office of the Financial Aid

Quick Loan Facts and Links

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.