William D. Ford Federal Direct Loan Program
Federal Direct Loans are low-interest loans for students to help pay for the cost of their education. The U.S. Department of Education acts as lender, offering Subsidized and Unsubsidized loans to UNH College of Professional Studies students.
Subsidized Loan
For students with demonstrated financial need. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. Available to undergraduate and post-baccalaureate students.
Unsubsidized Loan
Loans that are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. Available to undergraduate, post-baccalaureate, and graduate students.
Terms and Conditions
Repayment for your Federal Direct Loans begins six months after you graduate, withdraw, stop attending, or your enrollment status is less than half-time. The standard repayment term is ten years and the interest rate may vary depending on the type of Direct Loan and the disbursement date.
Visit studentaid.ed.gov for additional terms and conditions.
To apply for Direct Loans, students must complete the Free Application for Federal Student Aid (FAFSA) in order to assess the student’s financial need for student aid. Be sure to review the Federal Direct Loan Disclosure and Borrower’s Rights and Responsibilities provided with your Master Promissory Note.
Eligibility
Students must complete the following requirements before any Direct Loan disbursement will be applied to his/her student account.
Entrance Counseling is required before a new student loan borrower receives their first loan disbursement from the Direct Loan Program. Counseling helps the student understand their rights and responsibilities as a borrower and provides information and terms of the loan(s) to make the correct choices.
The Master Promissory Note (MPN) is a legal document in which the student promises to repay his/her loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of the loan(s). The UNH College of Professional Studies uses the multi-year MPN which means students can borrow additional Direct Loans on a single MPN for up to ten years.
Once your loan is certified, the Loan Origination Center will send you a Loan Disclosure Statement indicating the amount of your loan(s), estimated disbursement dates, and other pertinent information as a student loan borrower.
Disbursements
Direct Loans are awarded in substantially equal disbursements based on a student’s planned enrollment for the academic year. Disbursement dates shown on your Disclosure Statement and WebCat are estimates only. The actual disbursement dates depend on when requirements are completed and the final drop date of your courses each term.
Interest Rates and Fees
Interest rates and fees will vary depending on when the loan is first disbursed. Visit Federal Student Aid – Interest and Fees for more information.
Deferment
The federal government pays the interest on Direct Subsidized Loans while you are in school studying at least at a half-time rate. Direct Unsubsidized Loans accrue interest while in school and you do have the option to pay the interest while enrolled which will reduce the overall cost of your loan.
Under the terms and conditions that you receive Federal Student Loan assistance, you may obtain deferral of the repayment of principal and interest for several reasons.
Visit Federal Student Aid – Loan Information for more information.
Annual Award Amounts
The maximum amount a student may borrow each year in Direct Subsidized and Unsubsidized Loans depends on grade level and whether the student is a dependent or independent.
1st-year undergraduate: $9,500 ($3,500 subsidized max)
2nd-year undergraduate: $10,500 ($4,500 subsidized max)
3rd and 4th-year undergraduate: $12,500 ($5,500 subsidized max)
Post-Baccalaureate Certification (5th-year undergraduate level): $12,500 ($5,500 subsidized max)
Graduate Study: $20,500 unsubsidized
1st-year undergraduate: $5,500 ($3,500 subsidized max)
2nd-year undergraduate: $6,500 ($4,500 subsidized max)
3rd and 4th-year undergraduate: $7,500 ($5,500 subsidized max)
Post-Baccalaureate Certification (5th-year undergraduate level): $7,500 ($5,500 subsidized max)
Graduate Study: Not applicable
Aggregate Loan Limits
Aggregate loan limits are defined by the government and dictate how much in total loans a student may borrow.
Independent Students: $23,000 (Total Limit with Unsubsidized Loans: $57,500)
Dependent Students: $23,000 (Total Limit with Unsubsidized Loans: $31,000)
Post-Baccalaureate Students (totals include undergraduate loans): $23,000 (Total Limit with Unsubsidized Loans: $31,000)
Graduate Students (totals include undergraduate loans): $65,500 (Total Limit with Unsubsidized Loans: $138,500)
*Subsidized Stafford Loans are no longer available to students enrolled in graduate programs as of 7/1/12
Independent Students: $34,500 (Total Limit with Subsidized Loans: $57,500)
Dependent Students: $8,000 (Total Limit with Subsidized: $31,000)
Post-Baccalaureate Students (totals include undergraduate loans): $34,500 (Total Limit with Subsidized: $31,000)
Graduate Students (totals include undergraduate loans): $73,000 (Total Limit with Subsidized: $138,500)