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Federal Loans

 

All students seeking any federal loan are required to have a
Free Application for Federal Student Aid (FAFSA) on file.

 

 

Federal Direct Subsidized and Unsubsidized Loans

Subsidized and unsubsidized loans from the U.S. Department of Education for undergraduate, graduate, and professional students. The Federal Direct Subsidized Loan and the Federal Direct Unsubsidized Loan represent two types of loans made under the Federal Direct Loan Program.

Federal Direct Subsidized Loan

A Federal Direct Subsidized Loan is offered to undergraduate students based on his or her financial need.

The federal government pays the interest on behalf of the borrower of a Federal Direct Subsidized Loan if he or she is enrolled at least half-time or has obtained an authorized in-school deferment.

Limitation of the Federal Direct Subsidized Loan

For first-time borrowers, on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that they can receive Federal Direct Subsidized Loans. This time limit does not apply to Federal Direct Unsubsidized Loans or Direct PLUS Loans.

Students may not receive Federal Direct Subsidized Loans for more than 150 percent of the published length of their academic program. This is called the “maximum eligibility period" and it is based on the published length of a student's current academic program. You can usually find the published length of any program of study in the Newman University Academic Catalog.

  • If a student is enrolled in a four-year bachelor’s degree program, the maximum period for which he or she can receive Federal Direct Subsidized Loans is six years (150 percent of 4 years = 6 years).
  • Because the maximum eligibility period is based on the length of the student's current academic program, the maximum eligibility period can change if the student changes to an academic program that has a different length.
  • If students receive Federal Direct Subsidized Loans for one academic program and then change to another academic program, the Federal Direct Subsidized Loans they received for the earlier program will generally count toward their new maximum eligibility period.

Students become responsible for paying the interest that accrues on their Federal Direct Subsidized Loans when:

  • They are no longer eligible for Federal Direct Subsidized Loans and they stay enrolled in their current academic program.
  • They are no longer eligible for Federal Direct Subsidized Loans, they did not graduate from their prior academic program, and are enrolled in an undergraduate program that is the same length or shorter than their prior academic program.
  • They transferred into a shorter academic program and lost eligibility for Federal Direct Subsidized Loans because they received Federal Direct Subsidized Loans for a period that equals or exceeds their new, lower maximum eligibility period, which is based on the length of the new academic program.

Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized Loan does not require a student to demonstrate financial need.

  • The student borrower of a Federal Direct Unsubsidized Loan is responsible for paying the interest that accrues on the loan from the time of disbursement.
  • Undergraduate, graduate, and professional students may qualify for a Federal Direct Unsubsidized Loan.

Terms and conditions for Direct Loans interest rates, fees, and repayment options.

Federal Direct Subsidized and Unsubsidized Loan Terms and Conditions

  1. Complete Master Promissory Note (MPN)
  2. Complete Entrance Counseling

Interest Rates

Undergraduate Student Borrowers

  • 5.05% fixed interest rate for both Federal Direct Subsidized and Unsubsidized loans first disbursed between July 1, 2018 and June 30, 2019.

Graduate and Professional Student Borrowers

  • 6.6% fixed interest rate for Federal Direct Unsubsidized loans first disbursed between July 1, 2018 and June 30, 2019.

Origination Fee

  • The origination fee is a percentage of the loan amount which is deducted proportionally each time a disbursement is made. This means the disbursed amount will be less than the amount accepted. Students are responsible for repaying the entire amount they borrowed, and not just the amount they received.
  • First Disbursement Date - Origination Fee
  • On or after Oct. 1, 2017, and before Sept. 30, 2018 - 1.066%.  On or after Oct. 1, 2018, and before Sept. 30, 2019 - 1.062%

Repayment for Federal Direct Subsidized and Unsubsidized Loans

  • Repayment on a Federal Direct loan begins after the student's 6 month grace period has expired. The grace period begins when a student graduates, withdraws, or drops below half-time enrollment during an academic term.
  • Interest on Federal Direct Subsidized loans begins to accrue during the 6 month grace period.
  • Choose a payment plan that best fits your needs when you enter repayment.

Graduate/Professional Student

GRADUATE PLUS LOAN

This loan is based on credit. The borrower is responsible for the interest. Repayment would start 30–60 days after the last disbursement. However, deferments may be granted by contacting the lender. For specific loan information visit the Federal Financial Aid section.

  1. Complete PLUS Loan Application
  2. Complete PLUS Loan MPN
  3. Complete Entrance Counseling

Interest Rate

Graduate Plus Borrowers

  • 7.6% fixed interest rate for Federal Direct PLUS loans for Graduate/Professional Students first disbursed between July 1, 2018 and June 30, 2019.

Origination Fee

  • The origination fee is a percentage of the loan amount which is deducted proportionally each time a disbursement is made. This means the disbursed amount will be less than the amount accepted. Students are responsible for repaying the entire amount they borrowed, and not just the amount they received.
  • First Disbursement Date - Origination Fee
  • On or after Oct. 1, 2017, and before Sept. 30, 2018 - 4.264%.  On or after Oct. 1, 2018, and before Sept. 30, 2019 - 4.248%

Parents

FEDERAL PARENT PLUS

This loan is based on credit. The borrower is responsible for the interest. Repayment would start 30–60 days after the last disbursement. For specific loan information visit the Federal Financial Aid section.

  1. Complete Parent PLUS Application (under PARENT BORROWERS; Available after July 1st)
  2. Complete PLUS Loan MPN 

Interest Rate

Parent Plus Borrowers

  • 7.6% fixed interest rate for Federal Direct PLUS loans for Parents first disbursed between July 1, 2018 and June 30, 2019.

Origination Fee

  • The origination fee is a percentage of the loan amount which is deducted proportionally each time a disbursement is made. This means the disbursed amount will be less than the amount accepted. Parent borrowers are responsible for repaying the entire amount they borrowed, and not just the amount they received.
  • First Disbursement Date - Origination Fee
  • On or after Oct. 1, 2017, and before Sept. 30, 2018 - 4.264%. On or after Oct. 1, 2018 and before Sept. 30, 2018 - 4.248%