Federal Loan Programs

The Student Aid Reform Reconciliation Act of 2010 (H.R. 4872) replaced the bank-based Federal Family Education Loan Program (FFELP) with the Direct Loan Program. That means eligible students now borrow directly from the U.S. Department of Education at participating schools, and federal Stafford loans obtained through the FFELP program, will now be administered directly by the U.S. Department of Education as Direct Stafford Loans.

Direct Stafford Loans

There are two types of Direct Stafford Loans

• Subsidized (non-accrual of interest while in school)

• Unsubsidized (interest accrues while in school)

Direct Subsidized Loans

The subsidized program is offered to students who demonstrate financial need as defined by federal regulations. Important points include:

• The federal government pays the interest on subsidized loans while you are enrolled in school.
• You begin paying interest and principal six months after leaving school.
• To determine your eligibility for the Direct Stafford Loan, submit the Free Application for Federal Student Aid form (FAFSA), your study plan and course approval.
• You need to be enrolled at least half-time (six credits of Excelsior College courses) in a term.
• If you are enrolled for less than a full academic year your original loan award may be reduced.

Direct Unsubsidized Loans

If you do not qualify for the subsidized loan, you may be eligible to borrow under the Direct Unsubsidized Loan program. Important points include:

• An eligibility determination for the subsidized program must be made prior to applying for the unsubsidized loan.
• Interest on unsubsidized Direct Stafford Loans accrues while you are enrolled in college.
• You begin paying interest and principal six months after leaving school.

All other program rules are the same for both the subsidized and the unsubsidized loans.

Self-supporting/independent students and graduate students can borrow additional amounts under the unsubsidized Direct Stafford Loan Program.

Direct Plus Loans

There are two other Direct Loan Program options in addition to the Direct Stafford Loans:

• Parent Direct PLUS Loans for creditworthy parents or legal guardians of undergraduate students
• Graduate and professional degree student Direct PLUS Loans for creditworthy graduate students

Important points of these two Direct Plus programs include:

• Parents and graduate students may borrow up to the cost of education minus any financial aid.
• Loans are subject to the Department of Education's credit policy and the Office of Financial Aid certification of enrollment and costs.
• The interest rate is a fixed 8.5 percent.
• Repayment begins within 60 days of disbursement and may extend for up to 10 years.
• Deferred repayment may be available for some borrowers.
• Loans are made jointly payable to the parent/graduate student borrower and Excelsior College.

Interest and Limits

Interest Rates

Please note:  Interest rates for 2013-2014 academic year will be posted on July 1, 2013.

Direct Lending Interest Rates Effective July 1, 2009

Loans First Disbursed On or After July 1, 2009

Loan Type	Grade Level	First Disbursed July 1, 2009 through June 30, 2010	First Disbursed July 1, 2010 through June 30, 2011	First Disbursed July 1, 2011 through June 30, 2012	First Disbursed July 1, 2012 through June 30, 2013
Subsidized Stafford	Undergraduate	5.60	4.50	3.40	3.40
	Graduate	6.80	6.80	6.80	N/A
Unsubsidized Stafford	Undergraduate	6.80	6.80	6.80	6.80
	Graduate	6.80	6.80	6.80	6.80
PLUS Loans	Parent and Grad Student	7.90	7.90	7.90	7.90

(Source)

Loan Limits

Independent Students
Annual Limits	Subsidized	Unsubsidized	Total Limit
Freshman (under 30 credits)	$3,500	$6,000	$9,500
Sophomore (30-60 credits)	$4,500	$6,000	$10,500
Junior (61-90 credits)	$5,500	$7,000	$12,500
Senior (91+ credits)	$5,500	$7,000	$12,500
Graduate Students	$8,500	$12,000	$20,500
Lifetime Limits	Subsidized	Unsubsidized	Total Limit
Undergraduate	$23,000	$34,500	$57,500
Graduate	$65,000	$73,000	$138,500

Dependent Students
Annual Limits	Subsidized	Unsubsidized	Total Limit
Freshman (under 30 credits)	$3,500	$2,000	$5,500
Sophomore (30-60 credits)	$4,500	$2,000	$6,500
Junior (61-90 credits)	$5,500	$2,000	$7,500
Senior (91+ credits)	$5,500	$2,000	$7,500