The Federal Direct Loan is available through the Federal Direct Loan Program to help UMMC's undergraduate and graduate students pay for their education.
There is only one type of Federal Direct Loan available to Graduate level students - unsubsidized. Federal Subsidized Loans are only available to Undergraduate students.
This loan is available to students whom demonstrate financial need. With an subsidized loan, interest does not accrue during in-school, grace and deferment periods.
*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
This loan is available to students regardless of income or need. With an unsubsidized loan, you are responsible for all interest that accrues during in-school, grace and deferment periods. You may choose to pay the interest portion only while in school, which would keep your loan balance at principal. If you choose to defer such payments, the interest will be capitalized, resulting in an increase in both total debt and the amount of monthly payments.
Loans are usually issued for a single academic year, and both eligibility and amount are redetermined annually throughout your academic career.
Your Direct Loan eligibility is determined by the Office of Student Financial Services and is based on information you provided in the Free Application for Federal Student Aid (FAFSA).
Federal criteria include:
Borrowing limits are based on your dependency status and year in school. You are considered independent if you will be working on a degree beyond a bachelor's degree during the school year.
You can never borrow more than the cost of education, less other financial aid received (special rules apply for recipients of Montgomery Chapter 30 VA benefits and Americorps benefits). Below are the maximum amounts you may borrow.
As a graduate student, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:
Graduate/Professional Students can borrow a maximum total of $138,500. Medical and Dental students may borrow a maximum of $224,000 . These loan limits include all loans borrowed as an undergraduate.
Sample loan repayment disclosure information
The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. Studentaid.gov provides updated info on interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.Studentaid.gov has the most updated info on the current loan fee rates.
Here's a step-by-step guide to the Stafford application process:
An Electronic Funds Transfer (EFT) will be sent directly to our school. The amount of the proceeds will be the loan amount less the fees. Funds will credit first to your tuition bill and any excess funds will be mailed to your permanent address or directly deposited to your personal account.