Federal Direct Loans can be found to pupils whom make an application for educational funding making use of the FAFSA.
Direct Subsidized/Unsubsidized Loans
The attention prices are determined each June for brand new loans being created for the upcoming award year. Each loan may have a fixed rate of interest when it comes to life of the mortgage. These loans are assured because of the government that is federal. The FAFSA could be the only application necessary to get Federal Direct Loans you must accept your loans on MaineStreet to be able to get them.
Repayment on Direct Loans isn’t needed until a few months following the pupil renders school, provided that the pupil continues to be enrolled at minimum half-time. Interest accrual although the learning pupil is with in school is based on the sort of Direct Loan received (subsidized or unsubsidized). Unsubsidized Direct Loans will accrue interest as the pupil is in college.
Rates Of Interest & Costs
The attention prices for Direct Loans having a very first disbursement date on or after July 1, 2018 and prior to July 1, 2019 are:
- 5.045% on Subsidized & Unsubsidized Undergraduate Direct Loans
- 6.595% on Unsubsidized Graduate Direct Loan
The origination charge for the Direct Loan is 1.066% for loans originated on or after 1, 2017 and before October 1, 2018 october. For loans originated on or after October 1, 2016 and before October 1, 2017, the origination cost ended up being 1.069percent.
Annual and Life Stafford Loan Borrowing Limits
Federal laws specify the utmost Federal Direct Loan quantity any pupil can borrow each scholastic 12 months, dependant on grade degree. Real eligibility is specified in the University of Maine Award Notification and may also be lower than the maximum that is annual
| Grade amount and Dependency | Credit Hours Earned | optimum Direct Subsidized | optimum complete Direct Loan(Subsidized and Unsubsidized) |
| Dependent first-year | lower than 24 | $3,500 | $5,500 |
| Dependent sophomore | 24-53 | $4,500 | $6,500 |
| Dependent junior or senior | 54 and above | $5,500 | $7,500 |
| Independent first-year | not as much as 24 | $3,500 | $9,500 |
| Independent sophomore | 24-53 | $4,500 | $10,500 |
| Independent junior or senior | 54 and above | $5,500 | $12,500 |
| Graduate pupil | any credit hours | N/A | $20,500 |
NOTE: Dependent pupils whoever moms and dads are rejected a Federal Direct PLUS Loan meet the criteria for the separate pupil limitations when there is a legitimate Direct PLUS Loan denial (dated in the last 12 months) on file with your workplace.
Life Direct Loan Limits
Additionally, there are life time restrictions regarding just exactly how much Stafford Loan you can borrow. The restrictions, effective July 1, 2008, are the following:
| Grade degree and Dependency | optimum Direct Subsidized | optimum Total Direct Loan (Subsidized and Unsubsidized) |
| Dependent undergraduate | $23,000 | $31,000 |
| Independent undergraduate | $23,000 | $57,500 |
| Graduate pupil | $65,500 | $138,500 |
Note: The graduate financial obligation limitation includes loans gotten for undergraduate research.
Loan Repayment and Consolidation
Some students might want to give consideration to consolidating their federal student education loans right into a Consolidation Loan. This can be an choice who has both advantages and disadvantages, so make sure you investigate this option very carefully. To learn more on Consolidation Loans, click on this link.