Federal Direct Loan Programs
The United States federal government provides loans for students who are U.S. citizens, permanent residents, and eligible non-citizens. The Federal Direct Subsidized and Unsubsidized Loan and Federal Direct PLUS Loan Programs are available to students who meet the qualifications. (Effective July 1, 2012, the Budget Control Act of 2011 eliminated the interest subsidy for Graduate/Professional students.) The Bipartisan Student Loan Certainty Act of 2013 provided new formulas for the determination of interest rates. Interest rates, which are tied to a 10-year Treasury note index plus a statutorily defined add-on, will be established each year for loans where the first disbursement is on or after July 1 through the following June 30. The interest rate will be fixed for that year and apply to the life of that loan. Read below for more detailed information and instructions for completing an application online.
Federal Direct Unsubsidized Loans
Students who are matriculated in a degree-granting program, enrolled at least half-time (6 credits) for each semester they are seeking assistance, and completed a Free Application for Federal Student Aid (FAFSA) may apply. The maximum loan limit per academic year is the lower of $20,500 or the cost of education. Effective for loans first disbursed after July 1, 2016, the interest rate is fixed at 5.31 percent. Federal Direct Loans are subject to loan fees of 1.068 percent for loans first disbursed on or after Oct. 1, 2015 and loan fees of 1.069 percent for loans first disbursed on or after Oct. 1, 2016. Loan fees are deducted from loan proceeds prior to the disbursement of funds and borrowers are responsible for repayment of all such fees.
Interest on the unsubsidized Federal Direct Loan begins to accrue immediately after the loan is disbursed. The borrower is responsible for all interest that accrues and can choose to either pay the interest while in school or add any deferred interest to the principal balance of the loan "capitalization." The maximum cumulative borrowing for the subsidized and unsubsidized loan is $138,500, of that no more than $65,500 can be subsidized.
Applying for Federal Direct Loans
If you have been awarded a Federal Direct Unsubsidized Loan, and you are a first time borrower at Quinnipiac University School of Law, you may complete the Master Promissory Note and Entrance Counseling via the Internet. Please follow the instructions provided on the Direct Loans Web page.
To login in and electronically sign your Master Promissory Note, you will need your FSA ID used to electronically sign your FAFSA. You will also be asked to provide two references (and corresponding name, address and telephone number). One reference should be your nearest relative.
Federal Direct Graduate PLUS Loans
Students may apply if they have matriculated in a degree-granting program, enrolled at least half-time (6 credits) for each semester they are seeking assistance, completed a Free Application for Federal Student Aid (FAFSA), and applied for their annual Federal Direct Unsubsidized Loan maximum. Approval is based on credit criteria. The maximum loan limit is the cost of education minus other aid received. Effective for loans first disbursed after July 1, 2016, the interest rate through the Federal Direct Graduate PLUS Loan Program is fixed at 6.31 percent. Federal Direct Graduate PLUS Loans are subject to loan fees of 4.272 percent for loans first disbursed on or after Oct. 1, 2015 and loan fees of 4.276 percent for loans first disbursed on or after Oct. 1, 2016. Loan fees are deducted from loan proceeds prior to the disbursement of funds and borrowers are responsible for repayment of all such fees. Repayment on Federal Direct Graduate PLUS loans begins after the second disbursement, however, students enrolled at least half-time are eligible for deferment. Students may elect to receive a six-month grace period after the student graduates, drops below half-time status, or withdraws.
Applying for a Federal Direct Graduate PLUS Loan
To begin the online application process for a Federal Graduate PLUS Loan, you must complete the Federal Direct Graduate PLUS Loan Data Form. Please read the instructions at the top of the form before entering the data. Remember to select the loan period for the semester(s) you wish to receive the requested loan amount.