S2009 Schurman Hall
Ithaca, NY 14853
Federal Direct Stafford Loans (FDSL)
Students in a professional curriculum who demonstrate need may borrow up to $8,500 per year, to an aggregate undergraduate and graduate limit of $65,000. The interest rate is fixed at 6.8%. Interest is subsidized (paid by the federal government) until loan repayment begins six months after the borrower leaves school. An origination fee of 1.5% of the principal amount of the loan (with an upfront rebate of 1%) is assessed as each loan is disbursed.
The FDSL is expected to be the first self-help loan. Perkins Loans, Health Professions Student Loans, and College grants are offered to eligible students as supplemental to this loan.
Federal Perkins Loan (FPL)
Eligibility is based on current need, prior indebtedness, and prior borrowing of Perkins/NDSL money. Borrowing is limited to $60,000 (undergraduate plus graduate). Payment of principal plus 5% interest begins nine months after full-time enrollment in an eligible program ends.
Health Professions Student Loan (HPSL)
Eligibility criteria are similar to that described for the FPL. However, regardless of the student's age or marital status, complete parental data is required on both the FAFSA and the CSS Profile. The maximum annual loan available is defined as cost of attendance; however, available funds are usually not sufficient to allow maximum awards. Interest is fixed at 5% during the repayment period, which begins one year after the borrower ceases to be enrolled at least half-time.
Federal Direct Unsubsidized Stafford Loans (FDUSL)
The Federal Direct Unsubsidized Stafford/Ford Loan for Middle Income Borrowers is intended for those students who do not qualify for (some or all of) the FDSL. A total of $40,500* per year is available through the Federal Direct Stafford/Ford Loan Program. The amount of FDUSL available is the difference between $40,500* and the student's eligibility for the subsidized direct loan. The interest rate and origination fee are the same as for the subsidized Stafford/Ford Loan. The difference is that, although principal is deferred, interest accrues from the date of disbursement.
*for Health Professions students
Federal Direct Grad PLUS Loan
The Federal Direct Grad PLUS loan is available to graduate and professional students who have borrowed the maximum subsidized and unsubsidized loan amounts but still have educational costs that are not covered by other financial aid. In addition to the FAFSA, this program requires a separate application and approval is based upon a credit history review. The interest rate is fixed at 7.9% and there is a 4% origination fee on the amount borrowed. Direct Loan offers a 1.5% upfront rebate. However, once in repayment, 12 consecutive payments are required or the rebate will be added back into the principal balance of the loan. Interest starts to accrue on disbursement, and repayment starts 60 days after the final disbursement. Students are eligible for an in-school deferment as long as they are enrolled for at least half-time. Standard repayment is 10 years and can be extended to 25 years depending on the amount borrowed.
Summary: Provision of Education Loans Programs
FDSL - Federal Direct Stafford Loan
FPL - Federal Perkins Loan
HPSL - Health Professions Student Loan
FDUSL - Federal Direct Unsubsidized Stafford Loan
Loans offered through the federal student assistance programs are guaranteed for repayment by the federal government should the borrower die or become totally disabled before repayment is completed.
|Annual Maximum||$8,500||$8,000||Cost of Attendance|
(includes undergraduate Perkins loans)
|Eligibility Evaluation||FAFSA (no parental data required)||FAFSA (no parental data required)||FAFSA and PROFILE with parental data|
|Origination Fee||.5%(1.5%-1% rebate)||None||None|
|Grace Period||6 months||9 months||1 year|
|Minimum Monthly Payment||$50||$40||$40|
|Standard Years to Repay||
10 yrs (can go to 25 yrs)
|10 yrs||10 yrs|
|FDUSL||Grad PLUS loan|
|Annual Maximum||$40,500 (minus FDSL)***||Cost of Attendance|
|Aggregate Maximum||Defined by U.S. Dept. of Education*||None|
|Eligibility Evaluation||FAFSA (no parental data required)||FAFSA (no parental data required)*requires credit check|
|In-School Repayment||Interest, OR may capitalize||Interest, OR may capitalize|
|Origination Fee||.5% (1.5%-1% rebate)||2.5%|
|Grace Period||If have FDSL, 6 months, principal only||None|
|Minimum Monthly Payment||$50||$50|
|Standard Years to Repay||10 yrs (can go to 25 yrs)||10 yrs (can go to 25 yrs)|
|Deferments (see below)||Refer to your copies of loan documents to determine which of the possible reasons for deferment listed below are allowable. The deferments allowed for each individual loan program vary, depending on when you received your loans.|
* Total undergraduate and graduate/professional unsubsidized Stafford Loan aggregate limit is $189,125 minus total subsidized Stafford Loans. Aggregate limit for health professions students is $224,000.
** Interest rate for graduate/professional students
*** Amount refers to health professions students