Federal Direct Subsidized / Unsubsidized Loans

<< BACK TO FEDERAL LOANS

On This Page:

Loan Summary  |  Interest Rates & Origination Fees  |  Capitalizing Interest  |  How To Apply Getting Your Funds  |  Paying Back Your Loan  |  Deferment  |  Federal Updates  |  Getting Help

Federal Direct Subsidized and Unsubsidized Loans

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. (Some people refer to these loans as Stafford Loans or Direct Stafford Loans.)

Federal Direct loans do not require a credit check.

 

Loan SummarY: 

2017-2018 - Current Academic Year

 

 SUBSIDIZED LOANUNSUBSIDIZED LOAN

ELIGIBILITY

Undergraduates only

Undergraduate and graduate students

Award based on federally defined need

Award not based on financial need

For Both Loans:

U.S. citizens, permanent residents, and eligible non-citizens

Enrolled at least half-time

Maintain satisfactory academic progress (as defined by your school)

Cannot be in default on a federal student loan

INTEREST

4.45% rate charged for undergraduate students for loans disbursed on or after July 1, 2017.

 

No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.

4.45% rate charged for undergraduate students and 6.00% for graduate/ professional students for loans disbursed on or after July 1, 2017.

Interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.

LOAN FEES

Loans first disbursed on or after October 1, 2016 and before October 1, 2017 have an origination fee of 1.069%.For loans disbursed on or after October 1, 2017 and before October 1, 2018 the origination fee is 1.066%.

Loans first disbursed on or after October 1, 2016 and before October 1, 2017 have an origination fee of 1.069%. For loans disbursed on or after October 1, 2017 and before October 1, 2018 the origination fee is 1.066%.

REPAYMENT

Six-month grace period

Standard Repayment term is 10 years.

Extended Repayment term is 25 years.

Six-month grace period

Standard Repayment term is 10 years.

Extended Repayment term is 25 years.

Interest accrual begins at disbursement but can be paid monthly or prior to capitalization.

LIMITS PER ACADEMIC YEAR

Dependent

Undergrad

Independent

Undergrad

Dependent

Undergrad

Independent

Undergrad

1st Year

$3,500

$3,500

$2,000

$6,000

2nd Year

$4,500

$4,500

$2,000

$6,000

3rd & 4th Year

$5,500

$5,500

$2,000

$7,000

Post - Baccalaureate

$5,500

$5,500

$2,000

$7,000

   

Graduate

Graduate Health Professional

   

$12,000

$20,500 Maximum

$38,667

$47,167 Maximum

 

To Top

 

Interest Rates and Origination Fees

Interest rates are subject to change each year, however, federal loans since 2006 have remained fixed rate loan products.

 

 

                                                                                                                                                                 2016-2017 ACADEMIC YEAR

For loans that have a first disbursement on or after October 1, 2016 and before October 1, 2017 

 

 

 

ORIGINATION FEE

UPFRONT REBATE

INTEREST RATE

Subsidized - Undergraduate

1.069%

0%

3.76%

Unsubsidized - Undergraduate

1.069%

0%

3.76%

Unsubsidized - Graduate

1.069%

0%

5.31%

 

 

You can view Direct Loan interest rates from previous years on the Federal Student Aid website.

 

To Top

 

Capitalizing Interest

Direct Loan Servicing capitalizes all unpaid interest:

  • when repayment begins
  • when a period of deferment ends 
  • when a period of forbearance ends
  • annually, under the Income Contingent Repayment (ICR) plan, for borrowers whose payments do not cover their monthly interest accrual.

 

To Top

 

Application Process

  1. Fill out the FAFSA.
  2. Complete entrance counseling and a Master Promissory Note:
  • Go to the Direct Loan website.
  • Sign into Manage My Direct Loan using your Social Security Number, the last two letters of your last name, your date of birth and your FSA ID.
    • If you do not have an FSA ID, the website will prompt you to create one. You can also review this PDF for instructions. Note that it may take up to three days for the system to verify your identity when you create a new FSA ID.
  • Click on "Complete Entrance Counseling" (middle of the page).
  • After completing entrance counseling, click on "Complete Master Promissory Note."
  • Select "Type of Loan" and click on "Subsidized/Unsubsidized."
  1. Contact your School Financial Aid Office for further information and to complete any additional forms, if necessary.

 

CREDIT CRITERIA

A credit check is not required for Federal Direct Subsidized and Unsubsidized Loans. However, all borrowers should read our information on Loans and Your Credit to learn about how student loans may affect their credit.

To Top

 

Disbursement

Loan funds are disbursed directly to your tuition student account generally in at least two installments.The loan funds are first used to pay for tuition and fees, room and board, and other school charges. If any money remains, you can receive a refund. For more information on refunds, please see the SFS Refunds page.

To Top

 

Repayment Options

Learn more about repayment options for Federal Direct Loans here.

Deferment

The maximum period for which a borrower may receive a deferment is determined in accordance with the Direct Loan Program regulations, and depends on the deferment type.  Information about deferments is available on the Department of Education website. For more information about deferments, click here.

Federal Updates

There are no federal updates at this time.

To Top

 

Get Help

Comprehensive information is available on the U.S. Department of Education website. The Direct Loan Servicing website offers Columbia students online services from start (during counseling) to finish (repayment). However, you should wait until you receive information from your school's financial aid office before attempting to use the Direct Loan Servicing online functions.Please visit the My Federal Student Aid website to determine the servicer your loans have been assigned to. 

The list of servicers and their contact numbers can be found here:

https://studentaid.ed.gov/sa/repay-loans/understand/servicers

If you have FFELP loans, check the National Student Loan Data System (NSLDS) for customer service contact information.

 

 

To Top