Federal Student Loan Programs for Graduate and Professional Students
Please Note: You must apply for loans. Receipt of a financial award letter indicating eligibility for a loan does not constitute application. Further information and applications for loans are available from the Office of Financial Aid. You can reach the Office at firstname.lastname@example.org or by calling (305) 899-3673 or 1-800-695-2279.
Federal Direct Subsidized Loan Program
The Federal Direct Subsidized Loan is a need-based loan. The federal government pays the interest as long as you are enrolled at least half-time, as well as during the six month grace period. The annual limit is $8,500. The maximum aggregate debt (lifetime limit) is $65,500 – including any debt assumed for undergraduate study. The interest rate is a fixed rate of 6.8%. There is an origination fee of 1%, and a rebate of .5%, which is given at the time of disbursement. Repayment begins six months after you graduate or drop below half-time enrollment.
*** Please note: Beginning with the 2012-2013 academic year, the Direct Subsidized Loan Program will no longer be available to graduate and professional students. Students may still borrow through the Direct Unsubsidized Loan Program. ***
Federal Direct Unsubsidized Loan Program
Under the Federal Direct Unsubsidized Loan program, you do not have to demonstrate financial need to borrow funds; furthermore, the interest is not subsidized by the federal government. Consequently, you will have to make interest payments or allow the bank to capitalize the interest accrued during the period of enrollment. You may borrow up to $20,500 minus any approved Direct Subsidized Loan amount. The maximum aggregate debt (lifetime limit) is $138,500 minus any subsidized funds received, and including any debt incurred during undergraduate study. The interest rate is a fixed rate of 6.8%. There is an origination fee of 1%, and a rebate of .5%, which is given at the time of disbursement. Repayment begins six months after you graduate or drop below half-time enrollment.
Federal Direct PLUS Loan
If you are a graduate student who has borrowed the annual maximum in federal loans or you have exhausted your lifetime loan eligibility, you may be interested in the Federal Direct PLUS Loan. This loan allows you to borrow up to the full cost of attendance, minus any other financial aid you receive. You do not need to demonstrate financial need to qualify, but you must show that you are creditworthy. The interest rate is a fixed rate of 7.9% with no lifetime borrowing limit. There is an origination fee of 4%, and a rebate of 1.5%, which is given at the time of disbursement. Repayment of principal and interest begins 60 days after the loan is fully disbursed; however, you may defer repayment as long as you are enrolled at least half-time. Interest may be paid periodically or capitalized. After graduation, you may consolidate PLUS Loans with Direct Loans.
Note: You will not be denied a loan because you do not have a credit history. If you do have an adverse credit history, you may still receive a PLUS Loan if you obtain an endorser who does not have an adverse credit history.