The Federal Direct Loan Program
Federal Direct Loan Program Exit Counseling
Federal Direct PLUS Loan ProgramParents of dependent undergraduate students may borrow up to the cost of attendance minus any other financial aid resources under the PLUS Program. Application FormApplicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA).Download a PLUS loan application from our page and bring the completed application to Office of Financial Aid for certification. AmountLoans may not exceed the cost of attendance less financial aid. Parents who have no adverse credit history as determined by the Federal Direct Loan Servicer may be eligible.
The loan interest rate is variable and is adjusted each year on July 1 with a cap of 9 percent. There is no aggregate loan limit.
Borrowers are charged an origination fee and insurance fee, which are deducted from the loan proceeds before disbursement. Federal Direct Loan ConsolidationThe U.S. Department of Education offers a Federal Direct Loan Consolidation Program. Microsoft word free download 2007. The program allows Federal Direct Loan, as well as Federal Family Education Loan (Stafford, PLUS), borrowers to combine one or more federal loans into one new loan.
Federal Direct Loan Program Repayment Options
Federal loan programs may be consolidated under the Federal Direct Consolidation Program. Interest is calculated on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher 1/8 of 1 percent (not to exceed 8.25 percent). This rate is not variable and applies for the life of the loan. Extends repayment period up to 30 years.
No prepayment penalty applies.For further information or to apply, contact the U.S. Department of Education at 800.557.7392. Current Direct Loan Interest RatesInterest rates for Direct PLUS Loans first disbursed on or after July 1, 2006, have a fixed interest rate of 7.9 percent.for interest rates for Federal Direct PLUS Consolidation Loans for the period July 1, 2006, through June 30, 2007.
EligibilityWho May Apply: (by category) IndividualsWho May Apply: (specifically). Direct Stafford: Individuals who are undergraduate, vocational, or graduatestudents accepted for enrollment at least half-time in participating schools. Direct Unsubsidized Stafford: Individuals who are undergraduate, vocational,or graduate students accepted for enrollment at least half-time in participatingschools. Direct PLUS: Individuals who are parents of dependent students accepted forenrollment at least half-time in participating schools.
Beginning July 1, 2006,graduate students are also eligible. Direct Consolidation: Individuals who have outstanding student loans or thosewho have defaulted but have made satisfactory arrangements to repay the loan(s)(or who agree to pay under the income contingent repayment plan).