Federal student loans are a form of financial aid to finance your education and are available to both undergraduate and graduate degree seeking students. Student loans are borrowed money that must be repaid, with interest.

Federal Stafford Loans

William D. Ford Federal Direct Loan Program (DL) is Direct Loans and Direct PLUS Loans. If a student is not eligible for a subsidized loan, he/she is offered an unsubsidized loan. Applicable interest rates for Direct loans are listed later in this section. Loan funds are provided to you through UWest. There is a 1% origination fee deducted from the subsidized loan and unsubsidized loan, and a 4% origination fee deducted from the PLUS loans. Repayment begins six months following graduation, withdrawal, or enrollment less than half time.

Annual Loan Limits 

Aggregate Loan Limits

Interest Rates

It is recommended that you pay the interest while in school. If the interest is allowed to accumulate, it is capitalized and added to the principal amount of the loan once the student has entered repayment. This will increase the total amount that you have to repay.

Direct Subsidized Loans

• Submit the FAFSA; (http://www.fafsa.ed.gov/)
• Financial need-based;
• Must be repaid;
• The U.S. Department of Education will pay the interest that accrues while you are in school at least halftime or more;
• As of July 1, 2012, graduate degree students are not eligible to receive the subsidized loan.

Direct Unsubsidized Loans

• Submit the FAFSA; (http://www.fafsa.ed.gov/)
• The loans are not financial need-based, but is limited to cost of attendance (COA) and annual loan limits;
• Must be repaid;
• Interest accrues from the time the loan is disbursed until it is paid-in-full;
• You are responsible for paying the interest that accrues during all periods.

Federal Direct Parent Plus Loan (PLUS)

• Submit the FAFSA; (http://www.fafsa.ed.gov/)
• It is a self-help aid must be repaid;
• It is a federal unsubsidized loan for parents to borrow on behalf of their dependent undergraduate student;
• This loan may substitute for the Expected Family Contribution (EFC), but may not exceed the student budget minus any other financial aid the student receives;
• Students enrolled at least half-time;
• There is a fee of 4 percent of the loan amount;
• The parent is responsible for repaying and all the interest;
• There is no grace period; repayment either begins on the date of the last disbursement or defer repayment for additional six months after the dependent student is enrolled at least half-time;
• Applicant must not have an adverse credit history;
• The lender (the U.S. Department of Education) establishes the parent borrower’s eligibility based on ability to repay and credit worthiness. If the lender denies the PLUS loan, the student may be eligible to borrow an Unsubsidized Stafford Loan.

Federal Direct Graduate Plus Loan (GRAD PLUS)

• Submit the FAFSA; (http://www.fafsa.ed.gov/)
• Graduate or professional students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance (COA) minus other estimated financial aid the student receives ;
• Students enrolled at least half-time;
• There is a fee of 4 percent of the loan amount;
• Borrower is responsible for repaying and all the interest;
• Applicant must not have an adverse credit history;
• The terms and conditions applicable to Parent PLUS loans also apply to Graduate/Professional PLUS loans;
• Repayment begins on the date of the last disbursement;
• Applicants for these loans also must have applied for their annual loan maximum eligibility under the Federal Unsubsidized Direct Loan Program before applying for a Graduate/Professional PLUS loan.

Private Loan (This is not a Federal Student Aid)

It is a credit-based educational loan borrowed directly from a lender. Because the interest rates on private loans are not federally regulated, this type of loan is more expensive. Interest rates and fee schedules tend to fluctuate depending on the borrower’s creditworthiness. In many cases, private loans include processing fees and/ or repayment fees, so carefully evaluate the total cost including repayment before deciding to borrow. Students applying for a private education loan are required to complete and submit a Private Education Loan Applicant Self-Certification signed form to your lender.