Follow These Guidelines to Stay Eligible

  • Must take 6 course hours
  • Maintain a 2.0 GPA
  • Keep a 67% completion rate
  • Must not be in default
  • Must not have reached aggregate loan limits
  • Must be in good academic standing and not currently suspended

Why do I have to repay a Federal Stafford Loan?

Unlike grants and scholarships loans are loans, not gifts, and must be repaid.

What are loan fees?

A fee charged for each federal student loan you receive that is a percentage of the total loan amount you are borrowing (gross amount). The loan fee is deducted proportionately from each disbursement of your loan. This reduces the actual loan amount you receive (net amount). The specific loan fee that you are charged will be included in a disclosure statement you will receive after the first disbursement of your federal student loan. You will be required to repay the gross amount.

  • Subsidized and Unsubsidized loans 1.051% loan fee on or after July 1, 2013 
  • Direct PLUS Loans 4.204% loan fee on or after July 1, 2013

Is my loan affected by my grades?

Yes. If your cumulative GPA falls below a 2.0 any time during the loan period you may no longer be eligible to receive student loans. All aspects of the Standards of Academic Progress policy will be measured before each loan distribution.

If you do not meet the minimum standards set, you will lose your second disbursement as well as any remaining grants.

If I only want to apply for a loan why do I have to complete the FAFSA?

The FAFSA is used to determine eligibility for federal, state and institutional aid which includes grants, student loans and work-study eligibility.

What is the minimum number of credit hours in which I have to be enrolled to receive Federal Stafford Loans?

You must be enrolled in at least six (6) credit hours. If at any time you drop below the six hour minimum any portion of your loan that has not been released to you will be cancelled and your lender will be notified.

Can I get the loan disbursement before classes start?

No. The earliest your loan can be released is after the 30th day of class for each semester. For one semester only loans the second disbursement will be released after the midpoint of the semester has passed.

If the first disbursement isn't released until the 30th day after the start of classes am I responsible for paying for classes up front?

No. As long as loan funds are in an Active (A) status on your account, you will not have to pay up front.

What is the interest rate for my Direct loan?

Loan Interest Rate
Direct Subsidized Loans for
Undergraduate students
Fixed 3.86%
Direct Unsubsidized Loans for
all students
Fixed 3.86%
Parent PLUS Loans Fixed 6.41%

What type of repayment incentives are offered by the Department of Education?

A repayment incentive is a benefit that is offered to encourage you to repay your loans on time. Under a repayment incentive program, the interest rate charged on your loans may be reduced. Some repayment incentive programs require that you make a certain number of payments on time to keep the benefits of the repayment incentive.
The Direct Loan Program currently offers two repayment incentive programs.

  • Interest Rate Reduction for Automatic Withdrawal Payments
  • Up-front Interest Rebate on Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans. (Except for loans first disbursed from July 1, 2012 through June 30, 2014, you may receive an up-front interest rebate on a Direct Subsidized Loan, Direct Unsubsidized Loan or Direct PLUS Loan.)

For More Information view the Exit Counseling Guide

When will my Direct Subsidized Loan begin to accrue interest?

Direct Subsidized loans will not be eligible for an interest subsidy during the six month grace period.  Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six month grace period after the student is no longer enrolled at least half-time, or if the loan or loans are in a deferment stats.  This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012 and before July 1, 2014.  If a student receives a subsidized loan during this timeframe, the student will be responsible for the interest that accrues while the loan is in the grace period.

What are by repayment options?

The Direct Loan Program offers loan repayment plans designed to meet the needs of most borrowers. Direct Loans are funded by the U.S. Department of Education through your school and are managed by a loan servicer, under the supervision of the Department. The Direct Loan Program allows you to choose your repayment plan and to switch your plan if your needs change.
To find out more about repayment options before receiving a Direct Loan, borrowers may contact their school's financial aid office or the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you currently have a Direct Loan and would like the exact payment amount on your loan, you can find it out by contacting your loan servicer.

  • Standard Repayment
  • Extended Repayment
  • Graduated Repayment
  • Income Contingent Repayment
  • Income-based Repayment
  • Pay As You Earn Repayment

For more information see repayment plans