Santa Clara University

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 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 begin paying the interest and principal on your loan.

• Who is eligible? Students who demonstrate financial need
• Interest rate?  Fixed at 6.0% for the 2008-09 Academic Year
• Fees?  2.0% origination fee plus 1.5% Up Front Rebate for the 2008-09 Academic Year

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% for the 2008-09 Academic Year
• Fees? 2.0% origination fee plus 1.5% Up Front Rebate for the 2008-09 Academic Year

Independent students and any dependent undergraduates whose parents are denied a Federal PLUS Loan are eligible to borrow additional Federal Direct Loan Unsubsidized up to the federal maximum in addition to their annual Federal Direct Loans (subsidized or unsubsidized). Contact the Santa Clara University Financial Aid Office for additional information.

Maximum Loan Amounts for 2008-09

	Subsidized and/or Unsubsidized	Additional Unsubsidized
Dependent Undergraduates
First Year	$5,500 (no more than $3,500 may be subsidized)	N/A
Second Year	$6,500 (no more than $4,500 may be subsidized)	N/A
Third Year & Beyond	$7,500 (no more than $5,500 may be subsidized)	N/A
Dependent Undergraduates whose parent is not eligible to borrow a Parent PLUS Loan
First Year	$5,500 (no more than $3,500 may be subsidized)	$4,000
Second Year	$6,500 (no more than $4,500 may be subsidized)	$4,000
Third Year & Beyond	$7,500 (no more than $5,500 may be subsidized)	$5,000
Independent Undergraduates
First Year	$5,500 (no more than $3,500 may be subsidized)	$4,000
Second Year	$6,500 (no more than $4,500 may be subsidized)	$4,000
Third Year & Beyond	$7,500 (no more than $5,500 may be subsidized)	$5,000

 

Aggregate Limits	Subsidized and/or Unsubsidized
Dependent Undergraduates	$31,000 (no more than $23,000 may be subsidized)
Independent Undergraduates	$57,500 (no more than $23,000 may be 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.