There are two types of Federal Direct Loans:
For 2012-13, Federal subsidized loans have an interest rate of 3.4%; unsubsidized loans have an interest rate of 6.8%. The loan origination fee is 1%. You will pay back 100% of what you borrow (plus interest); however, only 99% of the gross loan will be disbursed to the account.
NOTE: for loans with a first disbursement on or after July 1, 2013, the origination fee increases from 1% to 1.051%.
Repayment of both types of loans begins six months after graduation or if you fall below 6 credits. The passage of the Consolidated Appropriations Act has temporarily eliminated the interest subsidy provided on Direct Subsidized loans during the six- month grace period provided to students when they are no longer enrolled in at least 6 credits. This change is effective for new Direct Loans for which the first disbursement is made on or after July 1, 2012 and before July 1, 2014.
Direct Loan Servicing provides online access using your federally-assigned PIN to information on your existing Direct Loan(s). You may access your account information, view your loan balance, change your address, download deferment, forbearance and Electronic Debit forms, and complete the Online Exit Counseling Session. Enhancements include the ability to view your payment history, change your payment due date and to select a different repayment plan using the new repayment estimator that provides payment amounts using your actual Direct Loan balances in the system.
The Free Application for Federal Student Aid (FAFSA) is the standard application used to apply for any type of financial aid including loans. Once we receive your FAFSA we will send you a financial aid offer letter which will describe your aid eligibility. Students must be enrolled in at least 6 credits to receive federal loan funds.
Once you have received and reviewed your award offer you must log in to BU BRAIN at http://bubrain.binghamton.edu to accept or decline your loan(s). At the Main Menu, click on the Financial Aid tab. Select Award and appropriate aid year. Go to Award Overview to VIEW and/or PRINT your award offer.
Undergraduate student loan limits range from $5,500 to $12,500 per year depending on certain factors, including the student's year in college and other aid received.
|Dependent Students||Maximum Eligibility|
|Freshman||$5,500||If eligible, up to $3,500 may be subsidized.|
|Sophomore||$6,500||If eligible, up to $4,500 may be subsidized.|
|Junior or Senior||$7,500||If eligible, up to $5,500 may be subsidized.|
|Independent Students||Maximum Eligibility|
|Freshman||$9,500||If eligible, up to $3,500 may be subsidized.|
|Sophomore||$10,500||If eligible, up to $4,500 may be subsidized.|
|Junior or Senior||$12,500||If eligible, up to $5,500 may be subsidized.|
Graduate students can borrow up to $20,500 each year, and can apply for additional funding under the Graduate PLUS Loan program. Beginning July 1, 2012, subsidized loan funds are no longer available for graduate students due to the Budget Control Act of 2011.
An aggregate loan limit is the total amount of money a student is allowed to borrow during his/her undergraduate or graduate education.
Dependent Undergraduate Student: $31,000 (no more than $23,000 can be subsidized)
Independent Undergraduate Student: $57,500 (no more than $23,000 can be subsidized)
Graduate Student: $138,500 (no more than $65,500 can be subsidized)
Repayment begins 6 months after graduation, withdrawal or enrollment less than half-time. Students may select from one of four repayment options:
The U.S. Department of Education will provide the borrower with an opportunity to select a repayment plan. If the borrower does not select a plan, the department will provide the borrower assigned the standard repayment plan. The U.S. Department of Education will issue a repayment schedule that provides payment amounts and due dates. The Education Department may grant the borrower forbearance to eliminate a delinquency. The borrower may prepay all or any part of the unpaid balance on the loans at any time without penalty.
For additional information on understanding loans or repayment issues, visit The Student Loan Borrower Assistance website – a resource for borrowers, their families and advocates.
Last Updated: 4/12/13