FEDERAL DIRECT LOANS*
A Federal Direct Loan is a long-term, fixed rate loan made to students by the U.S. Department of Education. Typically, every student who files a Free Application for Federal Student Aid (FAFSA) is eligible to borrow a Federal Direct Loan. A student must be enrolled at least half-time (six credits) to be eligible to receive a Federal Direct Loan. The student has the option to make interest payments during the in-school period, or to allow the accrued interest to be capitalized (added on) to the principal balance. Interest rate is 5.41%
Maximum amount for 2014-15 school year: $7,500
*To obtain federal loans, students must accept the loan(s) on their financial aid award letter. All first-time borrowers are required to complete a Master Promissory Note (MPN) and an entrance counseling session in order to borrow funds through the Direct Loan Program.
Private loans should never be your primary funding source unless you have exhausted all of your other options. For more information, click here.