Federal Loans

Federal Direct Stafford Loan Program

By completing a financial aid application, you will be considered for the Federal Direct Stafford Loan Program. This loan is commonly referred to as the Federal Direct Loan Program. There are two types of Federal Direct Stafford Loans for students:

Federal Subsidized Direct Loan: Your eligibility is based on your financial need and your academic level (see charts below). You don’t have to make any payments until six months after you graduate or cease to be enrolled at least half time. The government pays the interest while you are in school and during your six-month grace period.

Federal Unsubsidized Direct Loan: Your eligibility is not based on financial need. You may borrow the cost of education minus all other financial aid you receive, up to the amount allowed for your academic level (see charts below). You have two choices for paying interest: you may pay it while you are enrolled full time, or it can accrue and become part of the principal that you will owe. You begin making payments six months after you graduate or cease to be enrolled at least half time.

Undergraduate
Students

Interest Rates

Federal Subsidized Direct Loan: Effective 7/1/2012, the interest rate on subsidized loans first disbursed to undergraduate students between July 1, 2011 and June 30, 2012 will be fixed at 6.8%. Rates subject to change based on Federal Budget approvals.

Federal Unsubsidized Direct Loan: The Unsubsidized Direct Loan is currently fixed at 6.8% for undergraduates students.

Origination Fee

There is a 1.0% origination fee; this amount is deducted from your loan before you receive the funds.

Loan Requirements

If you are a first-time Federal Direct Stafford Loan borrower, you must complete an electronic Master Promissory Note (eMPN) and complete electronic Pre-Loan Entrance Counseling before you can receive funds.

Loan Maximums

The maximum Federal Direct Stafford Loan amounts available vary according to academic level and dependency status. Please see the tables below for more information.

Dependent Undergraduate Students

​​Academic Level​​​​ Maximum Federal Direct Stafford Loan Amount​ New, as of July 1, 2008 - Additional Unsubsidized Amount​ ​New annual maximum amounts a dependent undergraduate may borrow in combined Subsidized and Unsubsidized Direct Stafford Loan 
Freshman​ ​$3,500 ​$2,000 ​$5,500
Sophomore​ ​$4,500 ​$2,000 ​$6,500
Junior/Senior​ ​$5,500 ​$2,000 ​$7,500

Independent Undergraduate Students

Academic Level​​ Maximum Federal Direct Subsidized Amount​ Unsubsidized Amount​ New annual maximum amounts an independent undergraduate may borrow in combined Subsidized and Unsubsidized Direct Stafford Loan​
​Freshman ​$3,500 ​$6,000 ​$9,500
Sophomore​ ​$4,500 ​$6,000 ​$10,500
Junior/Senior​ ​$5,500 ​$7,500 ​$12,500
 

Useful Publication

Direct Loan Basics for Students

Federal Loans For Parents of Dependent Undergraduate Students

Federal Direct PLUS Loan (Parent Loan)

The PLUS Loan is a federal loan program for parents of dependent undergraduate students. Generally, parents are eligible if they have a good credit history, are not in default on a federal student loan, and meet the other eligibility requirements outlined in the loan application. Parents may borrow up to the amount of the cost of education minus other financial aid received, including any other educational loans. The interest rate is fixed at 7.9%. In addition, the borrower is charged an origination fee of 4%; this amount is deducted from the loan before disbursement.

Loan Requirements

To apply for a Federal Direct PLUS Loan, you and your parent must do the following:

Plus loans are not automatically renewed. You and your parent must complete a FAFSA and a Plus Loan supplement every year.

Receiving Federal Loan Funds as a Disbursement

Your Federal Direct PLUS Loan funds will be disbursed directly to your university student account. Funds are first used to pay tuition and other university expenses. Any remaining credit will be refunded in accordance with the refund preference on file with the university. In general, you will receive an equal amount for each term for which your loan was approved. Your parent borrower will receive a disclosure statement from the Direct Loan Servicing Center that lists the dates and amounts for each Plus Loan that you will receive. If you are enrolled less than half time in any term, you cannot receive federal loan funds for that term.

Useful Publication

Direct Loan Basics for Parents

Federal Perkins Loan

DePaul provides loans to undergraduate students through the Federal Perkins Loan program. These funds are awarded to exceptionally needy students and are based upon the availability of funds. Annual awards generally range from $500 to $4,000.

The interest rate on this loan is fixed at 5%. No interest payments or principal payments are due until you are no longer enrolled at least half time and your nine-month grace period has expired.

This loan carries some specific cancellation provisions, including cancellations for students teaching in a designated low-income area or serving in the Peace Corps.

Loan Requirements

If you are a first-time Federal Perkins Loan borrower you must complete the electronic Master Promissory Note (eMPN) process.

While you need to complete the Federal Perkins eMPN only once, if you are awarded a Federal Perkins Loan in a subsequent year, you will need to complete a Perkins Loan Reaffirmation.

Receiving Federal Loan Funds

Your federal student loan funds will be disbursed directly to your university student account. Funds are first used to pay tuition and other university expenses. Any remaining credit will be refunded in accordance with the refund preference on file with the university. In general, you will receive an equal amount for each term for which your loan was approved. If you are enrolled less than half time in any term, you cannot receive federal loan funds for that term.

Important Information About Loan Reporting

All federal student loans obtained by a you or your parent are reported to and tracked on the National Student Loan Data System (NSLDS). NSLDS loan records are accessible to all authorized NSLDS users, including schools, student loan guaranty agencies, lenders, federal agencies, and other authorized users.

Only federal loan information is reported to NSLDS: private educational loan information is not reported to NSLDS.

You can view all your federal loan information at NSLDS by logging into the system with your federal pin. Your parent also can view any parent or student loans he or she has borrowed, by logging in with his or her federal pin.

Graduate/Law
Students

Interest Rates

Federal Subsidized Direct Loan and Federal Unsubsidized Direct Loan: The interest rate on both the Federal Subsidized and Unsubsidized Direct Loan is currently fixed at 6.8%.

Origination Fee

There is a 1% origination fee; this amount is deducted from your loan before you receive the funds.

Loan Requirements

If you are a first-time Federal Direct Stafford Loan borrower, you must complete an electronic Master Promissory Note (eMPN) and complete electronic Pre-Loan Entrance Counseling before you can receive funds.

Loan Maximums

The Federal Government sets the loan maximums. The yearly subsidized loan limits plus the unsubsidized loan limits cannot exceed $20,500. In addition, there are lifetime loan limits. Please review the chart below.

Subsidized Direct Loan Annual Maximum​​ Total Direct Loan Annual Maximum​ ​Maximum Lifetime Loan Limit
$8,500​ ​$20,500 ​$138,500


Graduate and Professional Loan Annual Amounts and origination fees are changing effective July 1, 2012. Please read below:


Important changes to federal student loans disbursed after July 1, 2012


  • The Federal Budget Control Act of 2011 eliminates the federal subsidy for graduate-level loans disbursed after July 1, 2012 (for academic year 2012-2013). You will still be eligible to borrow the same maximum amount of total Direct Loans annually ($20,500), but the entire loan amount will now be unsubsidized.
  • In addition, the origination fee rebate on Direct and Grad PLUS loans disbursed after July 1, 2012 has been eliminated.


What do these changes mean? 
The elimination of the federal student loan subsidy for graduate students mean:

  • Direct Loans borrowed after July 1 will be entirely unsubsidized, meaning that the loans will accumulate interest while you are in school.
  • The $8,500 annual Subsidized loan is eliminated.
  • You will still be able to borrow up to $20,500 per academic year (depending on your cost of attendance and enrollment level), and you will still be able to defer payments while you are in school, but the interest on your loans borrowed after July 1 will accumulate while you are school.
  • The interest rate will remain the same (fixed at 6.8%), but interest will accumulate from the time of disbursement for loans disbursed after July 1, 2012.

The chart below illustrates the changes described above:

Annual Loan Limits for Graduate/Professional Students​
​Loan Periods beginning before July 1, 2012​ ​Loan periods beginning on or after July1, 2012​
Subsidized Loan Maximum​ ​Unsubsidized Loan Maximum ​Subsidized Loan Maximum ​Unsubsidized Loan Maximum
​$8,500 ​$20,500 less any subsidized amount received ​$0 ​$20,500
 
The elimination of the origination fee rebate means that a larger fee will be taken from your loan at the time of disbursement. Depending on the amount you borrow, you could see up to an additional $100 deducted from your annual loan disbursement.

Federal Direct Graduate Student Plus Loan

An additional resource for graduate and professional students is the Federal Direct Graduate Student PLUS Loan Program. The Graduate Student PLUS Loan allows credit-worthy graduate students to borrow up to the full cost of attendance, minus any other financial aid. This program may be of interest if you need additional assistance to cover educational costs after other forms of aid have been awarded. The Federal Direct Graduate Student PLUS Loan shares its terms and conditions with the Federal Direct PLUS Loan (Parent Loan) program.

Borrower Eligibility


  • You must be a graduate or professional student enrolled at least half time in a degree-seeking program to qualify for the Federal Grad PLUS Loan
  • You must complete a Free Application for Federal Student Aid​ (FAFSA) and meet all federal eligibility requirements, including:
  • You need to be a U.S. citizen or eligible non-citizen
  • You need to be in good academic standing and make continuous academic progress in your course of study
  • You must not be in default on any federal loan or owe a repayment on any federal grant
  • You will need to be in compliance with all federal regulations governing selective service registration and the use of federal funds for educational purposes
  • You must first apply for your maximum loan eligibility through the Direct Subsidized and Direct Unsubsidized loan before the Grad Plus Loan can be awarded
  • Your loan will need to be approved by the Federal Direct Loan Servicer (the loan service for the U.S. Department of Education). Part of the loan approval will require a basic credit check

    • Loan Terms

    You may borrow up to the amount of the cost of education minus other financial aid received, including any other educational loans. The interest rate is currently 7.9%. An origination fee of 4% will be deducted from the loan proceeds prior to disbursement. Interest will accrue on the loan while you are in school and until the loan is paid in full.

    An Important Consideration

    The Federal Direct Graduate Student PLUS Loan program is one of many credit-based educational loan choices for graduate study. You are encouraged to compare the interest rates, credit check requirements, conditions, terms, and repayment of Graduate Student PLUS Loans with those of private/alternative loans.

    The credit check for the Graduate Student PLUS Loan will not be as stringent as that of most private/alternative loans, which often look at debt-to income ratio. Graduate Student PLUS Loans can be consolidated with other Federal Direct Loans (subsidized/unsubsidized), which allows students to have only one payment after graduation (private/alternative loans cannot be consolidated with federal loans). Interest rates tend to be lower than many private/alternative loans. The Graduate Student PLUS Loan has different requirements regarding deferment during regular and summer terms.

    If you wish to apply for the Federal Direct Graduate Student PLUS Loan, please complete the following steps:
  1. Complete a FAFSA application online and meet all federal eligibility requirements 
  2. Complete the Federal Direct Grad PLUS Loan Application Supplement Form and return to it our office
  3. Complete an electronic Federal Direct Graduate Student PLUS Loan​ electronic Master Promissory Note (eMPN). The Graduate Student PLUS Loan eMPN is a specific promissory note for the Federal Graduate Student Plus Loan program
  4. (new requirement) First-time Graduate Student PLUS Loan borrowers must also complete the online Entrance Counseling Session​. Select "Combination - Stafford and PLUS Loans" and you will complete both the Graduate Student PLUS Loan and Stafford Direct Loan requirements for Entrance Counseling

      Useful Publication

      Department of Education's Graduate Student PLUS Loan FAQ

      Receiving Federal Loan Funds

      Your federal student loan funds will be disbursed directly to your university student account. Funds are first used to pay tuition and other university expenses. Any remaining credit will be refunded in accordance with the refund preference on file with the university. In general, you will receive an equal amount for each term for which your loan was approved. If you are enrolled less than half time in any term, you cannot receive federal loan funds for that term.

      Important Information About Loan Reporting

      All federal student loans obtained by a you or your parent are reported to and tracked on the National Student Loan Data System (NSLDS). NSLDS loan records are accessible to all authorized NSLDS users, including schools, student loan guaranty agencies, lenders, federal agencies, and other authorized users.

      Only federal loan information is reported to NSLDS: private educational loan information is not reported to NSLDS.

      You can view all your federal loan information at NSLDS by logging into the system with your federal pin. Your parent also can view any parent or student loans he or she has borrowed, by logging in with his or her federal pin.​​
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