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Federal Student Direct Loans

Through a process called "Origination," the University advises the federal government if you are eligible to receive a Direct Student Loan, as well as the amount you are eligible to receive.

Federal Direct Student Loan

  • Student borrows from the U.S. Department of Education.
  • Must be enrolled at least half-time at the point of loan certification and disbursement to receive loan proceeds (half-time is 3 hours for undergraduates and graduates during summer, and 6 hours for undergraduates and 5 for graduates for fall and spring semesters).
  • First-time borrowers are required to complete Direct Entrance Counseling before the loan can be disbursed. Borrowers must complete Direct Exit Counseling upon graduation or falling below half-time enrollment.
  • Students must sign a Master Promissory Note with the Department of Education.
  • Repayment begins six months after graduation or last date of at least half-time enrollment.

There are two types: Subsidized and Unsubsidized

Subsidized Loan
Unsubsidized Loan
Based on financial need per FAFSA Not based on financial need
Long-term loan with a fixed interest rate of 3.76% for the 2016-2017 year.¹ Long-term loan with a fixed interest rate of 5.31% for the 2016-2017 year.¹
No interest is charged while in school at least half-time and during grace periods and deferment periods. Interest accrues (accumulates) on an unsubsidized loan from the moment it's first paid to you.²
¹ Interest rates change each school year.
² You can pay the interest while in school and during grace periods and deferment or forbearance periods, or allow it to accrue and be capitalized (that is, added to the principal amount of the loan). If no payment is made on the interest as it accrues this will increase the total amount you need to repay because interest will be charged on a higher principal amount.
 

Annual and Aggregate Loan Limits

The total amount of Subsidized and Unsubsidized Federal Student Loan cannot exceed the annual and aggregate (total) loan limits as stated in the chart below.

Year Dependent Undergraduate Student Independent Undergraduate Student Graduate and Professional Degree Student
First Year $5,500 - No more than $3,500 of this amount may be in subsidized loans. $9,500 - No more than $3,500 of this amount may be in subsidized loans. $20,500 - Unsubsidized only.
Second Year $6,500 - No more than $4,500 of this amount may be in subsidized loans. $10,500 - No more than $4,500 of this amount may be in subsidized loans.  
Third and Beyond (each year) $7,500 - No more than $5,500 of this amount may be in subsidized loans. $12,500 - No more than $5,500 of this amount may be in subsidized loans.  
Maximum Total Debt from Direct Loans when you graduate (aggregate loan limits) $31,000 - No more than $23,000 of this amount may be in subsidized loans. $57,500 - No more than $23,000 of this amount may be in subsidized loans. $138,500 - No more than $65,500 of this amount may be in subsidized loans. The graduate debt limits includes student loans received for undergraduate study.
Entrance and Exit Counseling

If you are receiving Federal Direct Loans at UL Lafayette as a first-time borrower, you are required to complete an entrance counseling questionnaire. This questionnaire explains the borrower responsibilities and information about different loan types. Upon graduation, or if you stop attending school, you will be required to complete an exit counseling questionnaire. The exit counseling explains your payment responsibilites and information about payment options.

To complete loan entrance or exit counseling, visit http://www.studentloans.gov

Master Promissory Note

You will need to sign a Federal Direct Loan master promissory note only one time. Your master promissory note is valid for 10 years. If you need to sign a master promissory note, you will be notified on your New Ulink Requirements page.