Federal Direct Loans
A Federal Direct Loan can be either subsidized or unsubsidized. If, after your family contribution and financial aid have been subtracted from your total cost of education, and you have remaining financial need, you are eligible to receive a subsidized Direct Loan (a Stafford loan). The federal government pays the interest on a subsidized Direct Loan while you are enrolled at least half time (6 credits) and for six months after you leave school.
If you are eligible to receive an unsubsidized Direct Loan to replace all or a portion of the family contribution, if there is loan eligibility remaining. If you borrow an unsubsidized Direct Loan, you have the option of paying the interest as it accrues, or you can allow the interest to be periodically added to the principal of the loan.
The following chart shows the amount you are eligible to borrow in each academic year beginning July 1.
|
Dependent Students |
Base Amount Sub/Unsub |
Total Sub/Unsub |
|---|---|---|
| First Year | $3,500 | $5,500 |
| Second Year | $4,500 | $6,500 |
| Third Year & Beyond | $5,500 | $7,500 |
|
Independent & Dependent Students (Except Students Whose Parents Cannot Borrow PLUS) |
Base Amount |
Total Sub/Unsub |
|---|---|---|
| First Year | $3,500 | $9,500 |
| Second Year | $4,500 | $10,500 |
| Third Year & Beyond, Second Degree | $5,500 | $12,500 |
| Graduate and Professional Students | N/A | $20,500 |
Stafford Loans have a maximum interest rate of 8.25%. The interest rate varies each year and is adjusted each July 1. Interest rates for July 1, 2012 - June 30, 2013 are 3.4% fixed in school, grace and deferment periods for Subsidized Loans, and 6.8% fixed during all periods for Unsubsidized Loans. You’ll be notified of interest rate changes throughout the life of the loan. Repayment on both subsidized and unsubsidized loans begins six months after you leave school.
Aggregate Loan Limits (Effective July 1, 2008)
Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)
Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)
Graduate and Professional Students: currently $138,500
Effective July 1, 2012 Graduate and Professional students will no longer be eligible for Subsidized Loans, only Undergraduates.
If you are requesting a Direct Loan at York College, you are required to complete a Direct Loan Request Form and an online Entrance Interview exam. First time borrowers should schedule an appointment for Financial Awareness and Debt Management Education for Students (F.A.D.E.S.) Workshop before submitting Direct Loan Request form. Please complete the Entrance Interview exam and submit the results with your William D. Ford Direct Loan 2013/2014 Request Form.
