Under this program a student will borrow directly from the federal government. These loans are either Subsidized (interest paid by federal government while student is enrolled) or Unsubsidized. Interest rates are currently fixed at 4.45%. Repayment will begin 6 months after the student leaves school or drops below 1/2 time enrollment. The subsidized loan amount is always based on demonstrated financial need and interest is paid by the federal government until you cease to be enrolled at least 1/2 time.
The maximum period of time that you can receive Subsidized loans is not more than 150% of the published length of the program for which you are enrolled. Example: 2 year degree program=3 years of subsidized eligibility if enrolled full time.
A dependent freshman student may borrow as much as $3500 per year. Sophomores may borrow $4500.
A Direct Loan disbursement will not be made if a student drops below 6 credit hours of enrollment.