Direct Student Loans
What is a Direct Student Loan?
CWU participates in the William D. Ford Federal Direct Loan Program, which means that all federal student loans offered through the Financial Aid Office come directly from the U.S. Department of Education, funded by the U.S. Treasury.
These loans are guaranteed by the federal government and are designed to help students and families cover the cost of higher education. The Direct Loan Program includes:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Parent PLUS Loans (for undergraduate parents)
- Graduate PLUS Loans (for graduate students)
- Complete Loan Entrance Counseling – an online tutorial that helps you understand your responsibilities as a borrower.
- Sign a Master Promissory Note (MPN) – a legal document that outlines the terms of your loan and your promise to repay. This note is typically valid for multiple loans over a 10-year period, meaning most students only need to sign once.
Subsidized and Unsubsidized Loans
Direct Subsidized Loans are awarded based on financial need and do not accrue interest while you're:
- Enrolled at least half-time
- In your grace period after leaving school
- In a deferment period
The amount you receive is capped by your financial need or your annual loan limit, whichever is lower.
Direct Unsubsidized Loans are not need-based and are available to all eligible undergraduate students.
- All qualifying undergraduates are eligible for at least $2,000 per year in unsubsidized loans.
- You may receive more depending on your total eligibility and Cost of Attendance.
- Each quarter, you will receive a statement from your Direct Loan Servicer showing the interest charged.
- You can choose to pay the interest as it accrues, or let it capitalize (add to your loan balance) when repayment begins.
Lifetime Federal Loan Limits
There are limits to how much you can borrow in federal student loans over the course of your academic career:
- Dependent undergraduate or post-baccalaureate students: Up to $31,000 total, with no more than $23,000 in subsidized loans.
- Independent undergraduate or post-baccalaureate students: Up to $57,500 total, with no more than $23,000 in subsidized loans.
Dependent Undergraduate Students
Annual Direct Student Loan limits include: base amount, unsubsidized loan amount, and total possible direct student loans.
| Dependent Undergraduate | Base Amount | Unsubsidized Loan | Annual Loan Maximum |
|---|---|---|---|
| First-year | $3,500 | $2,000 | $5,500 |
| Second-year | $4,500 | $2,000 | $6,500 |
| Third-year and beyond | $5,500 | $2,000 | $7,500 |
| Preparatory coursework | $2,625 | 0 | $2625 |
| Preparatory coursework | $5,500 | 0 | $5,500 |
| Teacher certification | $5,500 | 0 | $5,500 |
Independent Undergraduate Students
Annual Direct Student Loan limits include: base amount, unsubsidized loan amount, and total possible direct student loans.
| Independent Undergraduate | Base Amount | Unsubsidized Loan | Annual Loan Maximum |
|---|---|---|---|
| First-year | $3,500 | $6,000 | $9,500 |
| Second-year | $4,500 | $6,000 | $10,500 |
| Third-year and beyond | $5,500 | $7,000 | $12,500 |
| Preparatory coursework | $2,625 | $6,000 | $8,625 |
| Preparatory coursework | $5,500 | $7,000 | $12,500 |
| Teacher certification | $5,500 | $7,000 | $12,500 |
Repayment
Repayment on Direct Student Loans will begin six (6) months after you graduate, leave school or drop below half-time enrollment. Use the Loan Estimator to calculate your estimated payment. Due to recent legislative changes your Federal Student / Parent loans may be assigned to one of several new contracted loan services. If your loan is are assigned to a contracted servicer, they will contact you directly with more information.
Interest Rate
Federal Direct and Post-Baccalaureate undergraduate subsidized loans carry 0% interest while in school and will be charged interest when in repayment. All unsubsidized loans will accrue interest starting at the time of disbursement. View current interest rates as set by the US legislature.
Origination Fees
Federal Direct Student Loans are charged an origination fee. The interest rate and origination fee on subsidized Federal loans made to undergraduate students is set by the US legislature and may change periodically.
Loan Forgiveness and Cancellation
You may qualify to have part, or even all, of your federal student loans forgiven. Programs are available for teachers, public service employees, and other qualifying careers.
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