Undergraduate

Interest Rates

Federal Direct Student Loan interest rates are determined each spring for new loans being made for the upcoming award year (defined as July 1 through June 30). Each loan will have a fixed interest rate for the life of the loan. You can find more information about federal student loan interest rates at Federal Student Aid.

Origination Fee

There is an origination fee deducted from your loan before you receive the funds. For information about current origination fees, please visit Federal Student Aid.

Loan Requirements

If you are a first-time Federal Direct Stafford Loan borrower, you must complete an electronic Master Promissory Note (MPN) and complete online 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 Additional Unsubsidized Amount 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 Stafford Loan Amount Unsubsidized Amount 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

Lifetime (Aggregate) Loan Limits

There is a maximum lifetime limit that a student can borrow in Federal Direct student loans. This is called the Aggregate Loan Limit. Once a student reaches these loan limits, he/she cannot borrow Federal Direct student loans. See chart below for the undergraduate lifetime limits.

Dependent $31,000 — No more than $23,000 of this amount may be in subsidized loans.
Independent $57,500 for undergraduates — No more than $23,000 of this amount may be in subsidized loans.

For more information, visit studentloans.gov.

Federal Loans for Parents of Dependent Undergraduate Students

Federal Direct Parent PLUS Loan Program

The Federal Direct Parent PLUS Loan program is a federal loan program for parents of dependent undergraduate students. Generally, parents are eligible if they do not have an adverse credit history, are not in default on a federal student loan, and meet the other eligibility requirements outlined in the loan application.

A parent may borrow up to the amount of the cost of education minus other financial aid received, including any other educational loans. The Federal Direct Parent PLUS Loan interest rate is determined each June for new loans being made for the upcoming award year (defined as July 1 through June 30). Each loan will have a fixed interest rate for the life of the loan. There is also an origination fee charged to the borrower and deducted from the loan proceeds before disbursement. For information about Federal Direct Parent PLUS Loan interest rates and current origination fees, please visit studentloans.gov.

Repayment of the Federal Direct Parent PLUS Loan begins 60 days after the final loan disbursement is made; however, a parent borrower can choose to defer payments on the interest and principal until six months after the date the student ceases to be enrolled at least half time. If a parent borrower chooses to defer payments, the accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly. All payments are made to the Federal PLUS Loan servicer.

Applying for the Federal Direct Parent PLUS Loan

A Free Application for Federal Student Aid (FAFSA) is required for the Federal Direct Parent PLUS Loan. Click here to complete the online FAFSA. Our office will send you more information on all your student aid options, including the Federal Direct Parent PLUS Loan, after you complete the FAFSA.

Once you receive your financial aid award package, your parent must go to the Student Loans website to begin the online request process. After your parent completes the Federal Parent PLUS application, the federal loan processor will notify the DePaul Office of Financial Aid of your parent's intent to borrow the Federal PLUS Loan. Our office will then complete the school portion of your PLUS Loan request. We will notify you (the student) by email if we need additional information during the process.

Federal regulations stipulate that Direct PLUS loans be distributed in even disbursements across the terms of the loan period. For example, if your parent requests a loan for the academic year — that is, for Autumn, Winter, and Spring terms — the total amount of the loan will disburse evenly across these terms. We encourage you and your parent to calculate the PLUS amount needed for the entire academic period and request that amount.

For more details on the Federal Direct Parent PLUS Loan online application process, please refer to our Federal Direct Parent PLUS Loan Information Sheet. You may also find it helpful to view our Federal Direct Parent PLUS Loan Credit Balance FAQ. If you are planning to apply for a Summer Federal Direct Parent PLUS Loan, please refer to our Summer Federal Direct Parent PLUS Loan Information Sheet.

Federal Direct Parent PLUS loans are not automatically renewed. You and your parent must complete a FAFSA and reapply at the Student Loans website every year. More information on PLUS Loans can be found at the Student Aid website.

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. For more information, please visit Federal Perkins Loan at Federal Student Aid.

Loan Requirements

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

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

Important update: Federal Perkins Loan program will end on September 30, 2017 under the terms of the December 2015 Federal Perkins Loan Extension Act of 2015. Consideration for Federal Perkins Loan after December 2015 will be based on the availability of funds and the terms of the Federal Perkins Loan Extension Act. For more information, please contact a financial counselor at DePaul Central.

Receiving Federal Loan Funds

Your federal student loan funds will be disbursed directly to your university student account. 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.

Federal student loan 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. Note: If your parent has borrowed a Federal Direct Parent PLUS loan on your behalf, and a credit balance occurs as a result of the Federal Direct Parent PLUS loan disbursement to your tuition account, the credit balance will be refunded in accordance with the credit balance preference established by your parent. For more information on Federal Direct Parent PLUS loan credit balances, please visit our Federal Direct Parent PLUS Credit Balance FAQ.

Loan Reporting

All federal student loans obtained by 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.​​