Financial Aid - Entrance and Exit Guides for Federal Loans

New Loans
  • The Federal Family Education Loan (FFEL) Program ended July 1, 2010. No new loans, including consolidation loans, have been made under the FFEL Program since that date.
  • Graduate and professional students are not eligible to receive Direct Subsidized Loans for any period of enrollment (loan period) that begins on or after July 1, 2012.

 

Loan Interest Rates by Disbursement Date
Loan Type  First Disbursed
 July 1, 2012 -
 June 30, 2013
 Disbursed After
 June 30, 2013
 Direct Subsidized Loans
 (Undergraduate Students)
 Fixed at 3.4
 percent
 Fixed at 6.8
 percent
 Direct Unsubsidized Loans  Fixed at 6.8
 percent
 Fixed at 6.8
 percent
 Direct PLUS Loans (Parents
 and  Graduate or
 Professional Students)
 Fixed at 7.9
 percent
 Fixed at 7.9
 percent

 

Grace Periods
  • Loan that were/are first disbursed from July 1, 2012 - June 30, 2014, the federal government will not pay the interest during the student's grace period. 
  • Graduate and professional student borrowers with Direct and FFEL PLUS loans that were first disbursed on or after July 1, 2008, receive an automatic deferment while in school and a six-month deferment (comparable to a grace period) after they graduate, leave school or drop below half-time enrollment.

 

New Repayment Plan - Pay As You Earn

Like the Income Based Repayment (IBR) Plan, the Income Contingent Repayment (ICR) Plan (Pay As You Earn) is based on your income and generally offers the lowest monthly payments of the income-driven plans.

Direct Loan borrowers whose federal student loan debt is high relative to their income may be eligible for Pay As You Earn. Students who make payments under the Pay As You Earn plan for 20 years and meet other requirements, may have the remaining balance of their loan(s) canceled. Additionally, students who work in public service and have reduced loan payments through Pay As You Earn, after they have worked 10 years, the remaining balance could be canceled.

Students should contact their loan holder or servicer, or visit StudentAid.gov for more information about the Pay As You Earn Repayment Plan.

 

New Online Financial Awareness Counseling

For an interactive experience to better understand and manage student loans, visit StudentLoans.gov. Financial Awareness Counseling is located under Tools and Resources on the home page.

 

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