Federal loan programs are offered by the government and usually offer the best interest rates.
Federal Direct Loans
Federal Direct loans are low fixed-rate student loans for undergraduate and graduate students attending college. Direct loans are the most common and one of the lowest-cost ways to pay for your education. Direct loans are available to students enrolled for a minimum of six credits per semester.
Types of Stafford Loans
- Subsidized Direct Loans - Need-based. Interest does not accrue on the loan while you are in school at least half time or during future deferment periods because the federal government pays (subsidizes) the interest during these times. The interest rate is presently fixed at 4.53%.
- Unsubsidized Direct Loans – Not need-based. Accrues interest immediately upon pay out (disbursal). The interest rate is presently fixed at 4.53%.
APPLYING FOR A DIRECT LOAN
- Meet with your Financial Aid Counselor to determine the maximum amount you can borrow. Your counselor will also give you instructions on completing an online Direct Loan Entrance Interview. Make sure you write down your confirmation number.
- Complete online FAFSA
- Apply for your loan by completing a Direct Loan Master Promissory Note (MPN) at the Department of Education website.
NINE SIMPLE STEPS TO COMPLETE YOUR MPN
- You will need your FSA ID to begin the process. To setup an FSA ID for the first time, or to maintain an already established FSA ID, please visit studentaid.gov/.
- Disclosure and consent
- Provide name and school
- Complete MPN
- Review/read draft MPN
- Sign your MPN
- Review signed MPN/enter confirmation code
- Confirm acceptance of MPN terms and submit MPN
- Success! Now print your MPN.
- D'Youville participates in Electronic Funds Transfer (EFT). The loan funds will be automatically applied directly to your account in two equal disbursements (one for each semester).
- Meet with your Financial Aid Counselor to complete a Direct Loan Exit Interview prior to leaving D'Youville.
- Payments for Direct loans (both subsidized and unsubsidized) begin six months after graduation, withdrawal, or if enrollment falls below six credit hours.
DIRECT LOAN AMOUNTS (ANNUAL LIMITS)
- Undergraduate Students (dependent)
- First-Year: $5,500 (of which no more than $3,500 can be subsidized)
- Sophomore: $6,500 (of which no more than $4,500 can be subsidized)
- Junior and Senior: $7,500 (of which no more than $5,500 can be subsidized)
- Undergraduate independent students and dependent students with parents who are been denied/ineligible for Parent PLUS Loan
- First-Year and Sophomore: $ 4,000
- Junior and Senior: $ 5,000
- Maximum of $20,500 unsubsidized per year. The interest rate is presently fixed at 6.08%.
- Chiropractic Program students can receive a maximum of $37,167 per year unsubsidized. The interest rate is presently fixed at 6.08%.
DIRECT LOAN MAXIMUM LIFETIME BORROWING LIMITS
- Dependent Students = $31,000
- Independent Students = $57,500
- Graduate Lifetime Maximum Borrowing
- Master's degree students = $138,500
- Professional degree students (chiropractic) = $224,000
Federal Parent Loans (PLUS)
Parents can leverage additional money to help pay for their children's education through the Parent Loans for Undergraduate Students (PLUS) program, which also offers low interest rates.
Federal Parent Plus Loans are for parents of dependent undergraduate students.
The loan is taken out solely in the parent's name and must be repaid with interest. The Federal Parent Plus Loan is not need based like other federal aid, but is a credit based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee.
- The parent borrower must be the student's biological or adoptive parent. In some cases, the student's stepparent may be eligible.
- The student and parent must be a U.S. citizens or eligible non-citizens and have social security numbers.
- The student must be considered dependent (under 24 years of age, have no dependents and cannot be married or a veteran).
- Enrolled (minimum of half time) in an undergraduate program.
- Parent must meet credit eligibility requirements
APPLYING FOR A PARENT PLUS LOAN
- Check with your child's Financial Aid Counselor to determine the maximum amount you can borrow.
- Student must complete a FAFSA
- Apply for your loan by completing a Parent PLUS Loan Master Promissory Note (MPN) and Credit Check at the Department of Education website. Parents that are applying for more than one student must file separate applications for each student.
- Your loan will be paid out directly to D'Youville.
Federal Graduate Plus Loans
The Graduate Student Direct Plus Loan is a federal loan for graduate and professional students which must be repaid with interest.
It is not a need-based loan like other federal aid, but is a credit based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee.
Repayment begins 6 months after graduation, withdrawal, or if enrollment falls below six credit hours.
- You must be a U.S. citizen or an eligible non-citizen and have a social security number.
- Enrolled (minimum of 6 credit hours) in a graduate or professional program.
- Meet credit eligibility requirements