Loans are one of the three major types of student aid. Unlike grants and work study, which do not have to be repaid by the student, loans are a form of aid that must be repaid after graduation or when attendance drops below half-time status (minimum of 6 credit hours).
The following types of federal loans are available to students and/or their parents. If you decide to borrow always think federal aid first! All students must complete a FAFSA online at www.fafsa.gov to take advantage of federal loans. The FAFSA must be completed every academic year. More information is available by clicking on a specific loan program.
*Direct Subsidized Loans are no longer available to graduate students for loan periods that begin on or after July 1, 2012. The annual loan limit has not changed.
Federal Loan Application Deadlines: All federal loans must be accepted in Banner and originated before the student ceases to be enrolled at least half-time (6 credits) or the semester ends, whichever happens first. For more information about loan deadlines, please contact us at (716)-878-4902 or at firstname.lastname@example.org.
The Bipartisan Student Loan Certainty Act of 2013 amends the Direct Loan interest rate section of the Higher Education Act of 1965, as amended (the HEA). Direct Loans include: Direct subsidized/unsubsidized loans, Parent and Grad PLUS, and Consolidation loans. This law pegs Direct Student Loan interest rates to the 10-Year Treasury Note index. New Direct Loan rates will be set each July 1st for new loans taken out in that year.
The College Cost Reduction and Access Act of 2007 reduced the interest rates on subsidized Stafford Direct loans for undergraduate students starting July 1, 2008. These reductions were available only to undergraduate students for only subsidized Direct loans, not unsubsidized Stafford 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. This means the money you receive will be less than the amount you actually borrow. You are responsible for repaying the entire amount you borrowed, not just the amount you received.
Origination fees are listed on the Federal Student Aid website:
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