Federal Direct Stafford Subsidized Loan
- Fall/Spring: March 15
- Spring only: Aug. 15
- Summer: Feb. 15*
These loans are for students with financial need The difference between the COA and the EFC is the student's financial need - the gap between the cost of attending the school and the student's resources. The financial aid package is based on the amount of financial need. The process of determining a student's need is known as need analysis. as determined by the Federal Processer based on the information reported on the FAFSA. The lender A lender is a financial institution that provides funds to the student or parent for an educational loan. is the U.S. Department of Education.
Subsidized means the federal government pays the interest as long as half-time During each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. enrollment is maintained. Thereafter, payment on the loan interest becomes your responsibility.
As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for new borrowers on or after July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student's current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student's outstanding subsidized loan. Further information regarding this change can be found here.
Annual borrowing limits are based on the student's year of study:
- First year: $5,500 (no more than $3,500 of this amount may be subsidized)
- Second year: $6,500 (no more than $4,500 of this amount may be subsidized)
- Third year and beyond: $7,500 (no more than $5,500 of this amount may be subsidized)
Independent undergraduates (and dependent undergraduates whose parents are unable to borrow under the PLUS Loan Program)
- First year: $9,500 (no more than $3,500 of this amount may be subsidized)
- Second year: $10,500 (no more than $4,500 of this amount may be subsidized)
- Third year and beyond: $12,500 (no more than $5,500 of this amount may be subsidized)
Graduate and professional students
- Effective Fall 2012, graduate and professional students are no longer eligible to receive subsidized loans. For more information, you can review the Department of Education's electronic Announcement .
- Be enrolled at least half-time During each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time.
- Meet Satisfactory Academic Progress A student must maintain Satisfactory Academic Progress to continue to receive financial aid. Students must maintain a certain qualitative standard (i.e. cumulative GPA) in addition to maintaining a quantitative standard (i.e. successfully completing a required number of credit hours). Students must also complete their degree or certificate program within a maximum timeframe, which may vary according to the student’s status and program. If a student does not maintain the required standards, the student may lose their financial aid eligibility. requirements
- Be registered with the Selective Service The Selective Service Administration executes registration for the military draft. Male students who are US citizens and have reached the age of 18 and were born after December 31, 1959 must be registered with Selective Service to be eligible for federal financial aid. (males only)
- Be a U.S. citizen, national, or eligible non-citizen Someone who is not a US citizen but is nevertheless eligible for Federal student aid. Eligible non-citizens include US permanent residents who are holders of valid green cards, US nationals, holders of form I-94 who have been granted refugee or asylum status, and certain other non-citizens. Non-citizens who hold a student visa or an exchange visitor visa are not eligible for Federal student aid.
- Have financial need. as determined by the Federal Processer based on the information reported on the FAFSA
Loan A loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. funds will not disburse (pay) until all requested documentation has been submitted, and your aid application is considered to be complete.
A note will be placed on your myUNT "To Do List" if additional steps are required before disbursement Disbursement is the release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student's account for payment of tuition and fees. Any excess funds are then paid to the student in cash or by check for the purpose of paying for other educational expenses.
If the financial aid Money provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self help aid (loans and work). file is complete, disbursements can be made as early as ten days prior to the first day of a Fall or Spring fee payment (August/January) period. However, disbursements can also occur throughout an enrollment term upon completion of a file.
For Summer, loan funds will be disbursed in one disbursement on the 1st class day of the session in which you establish half-time During each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. attendance.
Federal Direct Student Loans Fixed Interest In a fixed interest loan, the interest rate stays
the same for the life of the loan. Rate for Loans First Disbursed on or after July 1, 2014 and prior to July 1, 2015 is 4.66 percent.
Federal Direct Student Loans Fixed Interest Rate for Loans First Disbursed on or after July 1, 2015 and prior to July 1, 2016 is 4.29%
Repayment begins six months after enrollment drops below half-time During each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. status or upon the point of graduation.
The Project on Student Debt works to increase public understanding of rising student debt. This initiative has compiled the top 10 tips for keeping your student loans under control. The tips can be reviewed here .
PayBackSmarter is a free tool to assist you in understanding your student loan repayment options. Their repayment calculator gives you a simple, visual way to review each different plan. Additional information is available here .
For more information regarding repayment, please visit Direct Loan Repayment Plans. For information regarding deferment occurs when a borrower is allowed to postpone repaying the loan. If the student has a subsidized loan, the federal government pays the interest charges during the deferment period. If they have an unsubsidized loan, they are responsible for the interest that accrues during the deferment period. The student can still postpone paying the interest charges by capitalizing the interest, which increases the size of the loan. Most federal loan programs allow students to defer their loans while they are in school at least halftime. If they do not qualify for a deferment, they may be able to get a Forbearance. Students cannot get a deferment if their loan is in default. or forbearance During a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. Students cannot receive a forbearance if your loan is in default. please visit Direct Loan Deferment and Forbearance .
Between 10 and 25 years to repay, depending on the amount owed and repayment plan selected.
- If you are a new borrower See First-Time Borrower at UNT (including transfer students), you may complete your Federal Direct Loan A loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. Entrance counseling at StudentLoans.gov anytime after being awarded federal aid. You will need your Federal Student Aid ID and enter University of North Texas as a school to receive the results. You must complete the counseling before your school can make the first payment of your loan. The counseling will help you understand your responsibilities about your loan.
- Effective Summer 2014, continuing UNT borrowers will need to complete the Financial Awareness Counseling Tool (FACT) annually. This requirement is a step in UNT's Default A loan is in default when the borrower fails to pay several regular installments on time (i.e. payments overdue by 180 days) or otherwise fails to meet the terms and conditions of the loan. If the student defaults on a loan, then the university, the holder of the loan, the state, and the federal government can take legal action to recover the money. This may include garnishing your wages and withholding income tax refunds. Defaulting on a government loan will make the student ineligible for future federal financial aid, unless a satisfactory repayment schedule is arranged, and can affect their credit rating. Aversion Plan; our goal is to ensure that each borrower understands how to manage their student loan and the commitment that comes with the acceptance of a student loan. Above all, borrowers must realize that student loans are not grants or scholarships; they require repayment. You may complete your Financial Awareness Counseling by visiting StudentLoans.gov. log in with your Federal Student Aid ID, select Complete Counseling then Financial Awareness Counseling. You must complete the counseling before UNT can make any payment of your loan.
- The U.S. Department of Education charges an origination fee The origination fee is paid to the bank to compensate them for the cost of administering the loan. The origination fees are charged as the loan is disbursed, and typically run to 3% of the amount disbursed. A portion of this fee is paid to federal government to offset the administrative costs of the loan. of the total amount borrowed per loan. This fee is deducted from the loan by the Department of Education before the proceeds are credited to a student's account. Loans first disbursed on or after 12/1/2013 and before 10/1/2014 will have a 1.072% gross fee. Loans first disbursed on or after 10/1/2014 and before 10/1/2015 will have a 1.073% gross fee. Loans first disbursed on or after 10/1/2015 and before 10/1/2016 will have a 1.068% gross fee.
- Borrowers must electronically sign a Federal Direct Loan Subsidized/Unsubsidized Master Promissory Note .
- Please visit the Federal Student Aid website for more information.
- Each Federal Direct Loan borrower at the University of North Texas is required to complete Student Exit Counseling shortly before completing a degree, leaving UNT (i.e. withdrawing, graduation) or ceasing half-time During each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. enrollment. To complete this requirement, go to StudentLoans.gov. log in with your Federal Student Aid ID, select Complete Counseling then Exit Counseling.