Fill out the Free Application for Federal Student Aid.
These loans are for students with financial need, as determined by the Federal Processer based on the information reported on the FAFSA. The lenderA lender is a financial institution that provides funds to the student or parent for an educational loan. is the U.S. Department of Education.
Subsidized means the federal government pays the interest as long as half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. enrollment is maintained. Thereafter, payment on the loan interest becomes your responsibility.
As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for new borrowers on or after July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student's current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student's outstanding subsidized loan. Further information regarding this change can be found here.
Annual borrowing limits are based on the student's academic level and dependency status.
|Academic Level||Maximum Subsidized Amount||Additional Unsubsidized Amount||Annual maximum amounts a dependent undergraduate may borrow in combined Subsidized and Unsubsidized Direct Stafford Loan|
|Academic Level||Maximum Subsidized Amount||Additional Unsubsidized Amount||Annual maximum amounts a independent undergraduate may borrow in combined Subsidized and Unsubsidized Direct Stafford Loan|
Lifetime (Aggregate) Loan Limits
There is a maximum lifetime limit that a student can borrow in Federal Direct student loans. This is called the Aggregate Loan Limit. Once a student reaches these loan limits, he/she cannot borrow Federal Direct student loans. See chart below for the undergraduate lifetime limits.
|Dependent||$31,000 – No more than $23,000 of this amount may be in subsidized loans|
|Independent||$57,500 for undergraduates – No more than $23,00 of this amount may be in subsidized loans|
LoanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. funds will not disburse (pay) until all requested documentation has been submitted, and your aid application is considered to be complete.
A note will be placed on your myUNT "To Do List" if additional steps are required before disbursementDisbursement is the release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student's account for payment of tuition and fees. Any excess funds are then paid to the student in cash or by check for the purpose of paying for other educational expenses..
Federal Regulations state financial aidMoney provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self help aid (loans and work). must wait until 10 days before the start of the semester (Fall then Spring) to begin disbursing money to pay your account. Taking this into account, if the financial aid file is complete we will disburse as early as 10 days before the start of the semester. Disbursements can also occur throughout an enrollment term upon completion of a file. Student accounting will begin the refund process once funds have been released to your account.
For Summer, loan funds will be released in one disbursement on the 1st class day of the session in which you establish half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. attendance.
Interest rates for the the Federal Direct Student Loans are determined each spring before the upcoming award yearThe academic year is defined as a set number of semesters as determined by the institution. (defined as July 1st through June 30th). Each loan will have a fixed interestIn a fixed interest loan, the interest rate stays the same for the life of the loan. rate for the life of the loan. You can find additional information regarding the Federal Student Loan interest rates at the Federal Student Aid website.
Repayment begins six months after enrollment drops below half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. status or upon the point of graduation.
The Project on Student Debt works to increase public understanding of rising student debt. This initiative has compiled the top 10 tips for keeping your student loans under control. The tips can be reviewed here.
PayBackSmarter is a free tool to assist you in understanding your student loan repayment options. Their repayment calculator gives you a simple, visual way to review each different plan. Additional information is available here.
For more information regarding repayment, please visit Direct Loan Repayment Plans. For information regarding defermentoccurs when a borrower is allowed to postpone repaying the loan. If the student has a subsidized loan, the federal government pays the interest charges during the deferment period. If they have an unsubsidized loan, they are responsible for the interest that accrues during the deferment period. The student can still postpone paying the interest charges by capitalizing the interest, which increases the size of the loan. Most federal loan programs allow students to defer their loans while they are in school at least halftime. If they do not qualify for a deferment, they may be able to get a Forbearance. Students cannot get a deferment if their loan is in default. or forbearanceDuring a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. Students cannot receive a forbearance if your loan is in default., please visit Direct Loan Deferment and Forbearance.
Between 10 and 25 years to repay, depending on the amount owed and repayment plan selected.