Federal Direct Loans are low interest rate loans that all students can apply for, provided they have filed a FAFSA and meet the criteria to receive federal aid.

As with all loans, Stafford Loans must be repaid with interest. Graduate students can be eligible to receive Unsubsidized Direct Loans. To receive the funds, you must be enrolled at least half-time (3 units).

FINANCIAL NEED

Not based on need


LIMITS

Cannot exceed the Federal Direct Loan annual limits noted below.

ANNUAL LOAN LIMITS

The maximum amount that Graduate/Professional students can borrow in Direct Unsubsidized loans is $20,500 every two consecutive semesters, depending on the student's calculated cost of attendance for the award term.  You are not required to borrow the full amount for which you are eligible; borrow conservatively to minimize indebtedness.

AGGREGATE LOAN LIMITS

 The maximum lifetime total that you can borrow for Direct Unsubsidized and Subsidized loans combined is $138,500 for Graduate/Professional students.


INTEREST

Interest rateis fixed at 5.41% until June 30, 2014 . You are responsible for paying all the interest while in school and after graduating or dropping below half-time enrollment. You can allow the interest to accumulate while you are in school and during the grace period. If you do, the interest will be capitalized immediately at the time of repayment. The capitalized interest will be added to the principal balance. It is to your advantage to pay the interest while in college; you will pay less in the long run.  For a breakdown of the interest rate, please click here.


FEES

For loans originated before October 1, 2013, the loan origination fee is 1.051%. For loans on or after December 1, 2013, the origination fee is 1.072%. 


APPLY FOR LOANS AND ENTRANCE COUNSELING

After being awarded an Unsubsidized Direct Loan, go to  https://studentloans.gov to complete a Master Promissory Note (MPN) and your Entrance Counseling.  Please note that once awarded a federal loan, students still need to accept their loan in order for it to be credited to their student account.

 If you are a continuing student borrower at PLNU,  go to your student portal to accept your loans (an MPN and entrance counseling is only required for new borrowers).


REPAYMENT

Begins six months after you graduate, withdraw or cease to be enrolled at least half-time (3 units).  The loan repayment period is typically 10 years, but may change depending on the loan repayment program you choose or if you make more than the minimum payment.  Please click here for more information about repayment.