Federal Direct Loan - Graduate Students
With the Federal William D. Ford Direct Loans, you borrow directly from the federal government to help cover your educational expenses. These loans offer low interest rates and you do not have begin to paying them back until after you graduate or enroll less than half time.
Types of Federal Direct Loans
Depending upon your level of financial need, you may be offered one of two types of Federal Direct Loan:
Federal Direct Loan - Subsidized
With the subsidized loan, the federal government pays the interest on your loan while you are enrolled and for six months after you graduate or withdraw from classes. Once the six-month grace period is over, you being paying the interest and principal on your loan. Your grace period begins after you enroll less than half time, graduate or withdraw from classes.
- Who is eligible? Students who demonstrate financial need
- Interest rate? Fixed at 6.8%
- Fees? (2009-10) 1.5% origination fee plus a 1.0% Up Front Rebate
Federal Direct Loan - Unsubsidized
With the unsubsidized loan, you are responsible for paying the interest on your loan; The federal government does not pay the interest as with a subsidized loan. You may begin paying the interest while you are still in school or add the interest to the total amount of your loan, which will you begin to repay after you enroll less than half time, graduate or withdraw from classes.
- Who is eligible? Students who do not qualify for a Federal Direct Loan Subsidized
- Interest rate? Fixed at 6.8%
- Fees? (2009-10) 1.5% origination fee plus a 1.0% Up Front Rebate
Maximum Loan Amounts
| Subsidized | Combined Subsidized and Unsubsidized | |
| Graduate Students | $8,500 | $20,500 (maximum $8,500 subsidized) |
| Teacher Certification | $5,500 | $12,500 (maximum $5,500 subsidized) |
| Graduate Aggregate Loan Limits | $65,500 | $138,500 (maximum $65,500 subsidized) |
Applying for a Federal Direct Loan
When you apply for financial aid, you will automatically be considered for one of these loans.
If you have not previously borrowed through the Federal Direct Loan program, you must complete the Entrance Counseling and submit a completed Master Promissory Note (MPN) before funds can be disbursed to your student account. If you have submitted a MPN in a prior year while at Santa Clara University, you do not need to submit another MPN loan application.
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