Federal Loan Changes

Elimination of Federal Direct Subsidized Loan and Upfront Interest Rebates  There are two important changes beginning in the 2012-2013 school year regarding your Federal Direct Loans. The recent bill passed in Congress to raise the debt ceiling affected some of the terms on Federal Direct Student Loan policies for 2012-13.

 

• 1. ELIMINATION OF FEDERAL DIRECT SUBSIDIZED LOAN FOR GRADUATE AND  PROFESSIONAL STUDENTS
  The Federal Direct Subsidized Loan will no longer be available for graduate and professional  students for loan periods beginning on or after July 1, 2012.  The overall amount that graduate and professional students can borrow remains unchanged.

 

• 2. ELIMINATION OF THE UPFRONT INTEREST REBATE FOR ALL STUDENTS Beginning July 1, 2012, the upfront interest rebate will no longer be offered on any Federal Direct Loans. Federal Direct Lending will deduct a 1% origination fee on Federal Direct Subsidized and Unsubsidized Loans, and a 4% fee on Federal Direct Parent PLUS and Graduate PLUS Loans.