Loans

William D. Ford Federal Direct Student Loans are a major form of self-help aid. These funds are to be used for education purposes, which include tuition, fees, books, supplies, room, board, and transportation. Unlike scholarships and grants, these funds do have to be paid back. There are several repayment schedules, but most begin six months after graduation or withdrawal from school or when the student becomes less than half-time, falling below six credit hours. Interest rates also vary and are set annually by the federal government.

William D. Ford Federal Direct Student Loan—Subsidized
Loans through the U.S. Department of Education are available to undergraduate students who demonstrate financial need. Borrowing limits vary according to classification and dependency status. The federal government pays the interest for the student until repayment begins. The current interest rate (July 1, 2020 - June 30, 2021) is fixed at 2.75 percent.

William D. Ford Federal Direct Student Loan—Unsubsidized
Loans through the U.S. Department of Education are available to students without regard to financial need. Borrowing limits vary according to classification and dependency status. Annual eligibility is limited to the cost of attendance minus other financial aid the student receives. Even though repayment does not begin immediately, the student is responsible for interest charges that begin to accrue immediately. The current interest rate (July 1, 2020 - June 30, 2021) is fixed at 2.75 percent.

Federal Direct Parent Loan for Undergraduate Students (FDPLUS)
Parent loans enable parents with good credit histories to borrow to pay the education expenses of their dependent undergraduate children. Annual eligibility is limited to the cost of attendance minus other financial aid the student receives. Financial need is not a requirement for this program; however the student must be eligible to borrow in order for the parent to be eligible to borrow. Student must max financial aid to allow for parent loan. Repayment and accrual of interest begins immediately. Students must file the FAFSA to establish eligibility for the loan. The current interest rate (July 1, 2020 - June 30, 2021) is fixed at 5.3 percent.

Loan Information Video