Federal Student Loan Options for Undergraduate Students
IMPORTANT NOTE: It is our firm belief that families should borrow only when absolutely necessary, and then only to the extent that is needed. We encourage that serious and deliberate consideration be given to making any borrowing decision.
How do I apply for this loan and am I eligible?
- Must meet federal eligibility requirements for federal student aid
- Request loan amount at email@example.com
- Must request loan each aid year
- Login to www.studentaid.gov using your FSA ID
- Under “Complete Aid Process” complete the MPN for Undergraduates and complete Entrance Counseling
- Completion of MPN and Entrance only required once
How much can I borrow?
- Loan limits depend on academic grade level for dependent students
- Freshmen - $5,500
- Sophomore - $6,500
- Junior, Senior - $7,500
- Borrowing limits can be increased if either condition is met
- Student considered independent on the FAFSA
- Student’s parent applied and was denied for Federal Direct PLUS Loan
What is the interest rate and what fees are charged for these loans?
- Effective July 1, 2020 – July 1, 2021, the interest rate = 2.75%
- Origination fee = 1.057%, deducted at each disbursement
When do I begin repaying the loan?
- Repayment begins six months (grace period) after you drop below half-time enrollment status