Loans

Federal Direct Unsubsidized Stafford Loan: This program may be used to cover the federal expected family contribution (EFC) in the Subsidized Loan calculation. A student may borrow an Unsubsidized loan up to a maximum of either $20,500 or the amount of unmet need plus the EFC. Interest accrues during enrollment, grace and deferment periods. Loans are market based and locked in at fixed rates for the life of the loan. The interest rate is 6.00% for the 2017-18 academic year. The Department of Education will withhold a percentage of the loan in required origination and default fees.

Federal Direct Graduate PLUS Loan: This loan is credit-based and can meet any part of the Cost of Attendance not filled by need-based aid. This loan is available to borrowers who meet federal eligibility requirements. Loans are market based and locked in at fixed rates for the life of the loan.The interest rate is 7.00% for the 2017-18 academic year. The Department of Education will subtract a percentage from the loan amount for origination and default fees. Borrowers may take up to 25 years to repay or exercise the Income Driven Repayment plan and there are deferment and forbearance provisions. This loan can be consolidated with other federal education loans. The fixed interest rate and the fact that it can be consolidated with other federal education loans make the Graduate PLUS an appealing choice over the alternative or other credit-based loans.

Alternative Loans (credit based): These are credit-based loans that can meet any part of the Cost of Education not filled by need-based loans. These loans have variable or fixed interest rates and can not be consolidated with other federal education loans. Most graduates take advantage of a credit-based Bar Study loan after they graduate.

How to Apply for Federal Direct Loans

Go to  https://studentloans.gov/myDirectLoan/index.action and login with your FSA ID. If you don’t have an FSA ID, you must create one.