Understanding Your Financial Aid Package

While numerous scholarships are available for upperclass students, incoming students are only eligible for incoming scholarships. If a student does not qualify for an incoming scholarship, federal loans may be used to finance one’s education.

On the award letter, if a student has been awarded a scholarship, it will be listed under the “Source” section. Also, a student’s loan eligibility will be listed.

One type of loan will be listed on the award letter: Unsubsidized.

Unsubsidized Direct Loan

An Unsubsidized Direct Loan is a non-need-based loan. You are responsible for all interest from the time the loan is disbursed until it is paid in full. You may pay the interest while you are enrolled or allow it to accrue and be capitalized. For graduate and professional students, the interest rate is fixed at 6.8 percent. The U.S. Department of Education will charge a 1.0 percent loan origination fee for processing your loan.

An Unsubsidized loan will not cover the entire Cost of Attendance. A federal, credit-based loan is available to students. The Graduate Plus loan may be used to cover any remaining costs.

Plus Loans for Graduate and Professional Students

Graduate and Professional degree students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The requirements include a determination that the applicant does not have an adverse credit history. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the William D. Ford Direct Unsubsidized Loan Program before applying for a Graduate/Professional PLUS loan. Students must complete an application/master promissory note online at www.studentloans.gov. The loan has a fixed interest rate of 7.9 percent and loan fees are 4 percent.

Loan Fees

Effective for loans first disbursed on or after July 1, 2012, the Department of Education is prohibited from offering any repayment incentives to Direct Loan borrowers, except interest rate reductions to borrowers who agree to have payments automatically debited from their bank accounts. The U.S. Department of Education will charge a 1.0 percent loan origination fee for processing your Unsubsidized Loan and 4.0 percent fee for your Graduate Plus Loan. The loan origination fee is deducted proportionately from each disbursement of your student loan.