Federal Direct Loans

Recent federal legislation eliminated subsidized Direct Loans for graduate students effective July 1, 2012. Unsubsidized Direct Loans have an interest charge during the in-school and grace periods. The loans have a fixed interest rate of 6.60 percent and a 1.062 percent origination fee. The repayment period extends up to 10 years, but there is a minimum monthly payment of $50.

Graduate students may borrow up to $20,500 per year from the unsubsidized Direct Loan. Although financial need is not required for an unsubsidized loan, the FAFSA must still be filed. In all cases, the total amount of student aid from all programs is limited to a student’s total educational costs as determined by the Office of Student Financial Aid.