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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.
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.
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
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.
Interest and Limits
Please note: Interest rates for 2013-2014 academic year will be posted on July 1, 2013.
Loans First Disbursed On or After July 1, 2009