The federal loan is awarded to those students who file the FAFSA form. Repayment of the federal loan begins 6 months after graduation or the student drops below half-time status and the standard repayment period is 10 years. The maximum loan eligibility depends on the student’s grade level. Freshmen can receive up to $3,500, sophomores can receive up to $4,500, and juniors and seniors can receive up to $5,500. This base amount of loan may be split between subsidized and unsubsidized loans based on the financial need of the student. Additionally, all students are eligible to borrow an additional $2,000 unsubsidized federal loan per year.
The federal loan consists of the subsidized and unsubsidized loans.
Subsidized Federal Loan: The subsidized loan is available to students with financial need based on the FAFSA calculation. The interest rate for the 18-19 academic year has a fixed rate of 5.05%. The interest rate for the 17-18 academic year is a fixed rate of 4.45%. The 16-17 academic year has a fixed rate of 3.76%, the 15-16 academic year has a fixed rate of 4.29%, and the 14-15 academic year has a fixed rate of 4.66%.
Unsubsidized Federal Loan: The unsubsidized loan is not based on need but a FAFSA is required to determine the student’s need level. The interest rate for the 18-19 academic year has a fixed rate of 5.05%. The interest rate for the 17-18 academic year is a fixed rate of 4.45%. The 16-17 academic year has a fixed rate of 3.76%, the 15-16 academic year has a fixed rate of 4.29%, and the 14-15 academic year has a fixed rate of 4.66%.