Santa Clara University

Federal Direct Loan - Undergraduates

With the William D. Ford Federal Direct Loans, you borrow directly from the federal government to help cover your educational expenses.

Depending upon your level of financial need, you may be offered one of two types of Federal Direct Loans:

Federal Direct Loan - Subsidized
The federal government pays the interest on your loan while you are enrolled at least half-time. Once the six-month grace period is over, you begin repayment on your loan.

  • Need-based
  • Must be enrolled at least half-time
  • 2013-14: 3.86% fixed-variable interest rate, capped at 8.25%
  • 2013-14: 1.051% origination fee, 1.072% origination fee
  • 6-month grace period
  • FAFSA required annually
  • Must complete Entrance Counseling & a Master Promissory Note (MPN)
  • Subsidized ceases when a student completes 150% of the units required for their degree
  • Must meet satisfactory academic progress

NOTE: With the passage of the Budget Control Act, the Federal Direct Loan for which the first disbursement was made on or after July 1, 2013, but before December 1, 2013, the origination fee is 1.051%. As of October 1, 2013, the Federal Direct Loan for which the first disbursement is made on or after December 1, 2013, the origination fee is 1.072%.

Federal Direct Loan - Unsubsidized
You are responsible for paying the interest on your loan; the federal government does not pay the interest as with a subsidized loan. You may begin paying the interest while you are still in school or add the interest to the total amount of your loan, which you will begin repaying once your 6-month grace period ends. Your grace period begins when you are enrolled less than half-time, graduate or withdrew from classes.

  • Non need-based
  • Must be enrolled at least half-time
  • 2013-14: 3.86% fixed-variable interest rate, capped at 8.25%
  • 2013-14: 1.051% origination fee, 1.072% origination fee
  • 6-month grace period
  • FAFSA required annually
  • Must complete Entrance Counseling & a Master Promissory Note (MPN)
  • Must meet satisfactory academic progress

NOTE: With the passage of the Budget Control Act, the Federal Direct Loan for which the first disbursement was made on or after July 1, 2013, but before December 1, 2013, the origination fee is 1.051%. As of October 1, 2013, the Federal Direct Loan for which the first disbursement is made on or after December 1, 2013, the origination fee is 1.072%.

Independent students and any dependent undergraduates whose parents are denied a Federal Direct PLUS Loan are eligible to borrow additional Federal Direct Loan - Unsubsidized up to the federal maximum in addition to their annual Federal Direct Loans (subsidized or unsubsidized).

Applying for a Federal Direct Loan

When you apply for financial aid, you will automatically be considered for this loan. If you have not previously borrowed through the Federal Direct Loan program, you must complete an entrance counseling tutorial online and complete a Master Promissory Note (MPN) online before funds can be disbursed to your student account. If you have completed a MPN at a Direct Lending institution within the last ten years, you do not need to submit another MPN.

Aggregate Limits

Dependent Undergraduates
$31,000 (no more than $23,000 may be subsidized)

Independent Undergraduates
$57,500 (no more than $23,000 may be subsidized)

Loan Limits

 
Subsidized and/or Unsubsidized

Additional Unsubsidized


Dependent Undergraduates
First Year
$5,500 (no more than $3,500 may be subsidized) N/A
Second Year
$6,500 (no more than $4,500 may be subsidized) N/A
Third Year & Beyond
$7,500 (no more than $5,500 may be subsidized) N/A
Dependent Undergraduates whose parent is not eligible to borrow a Parent PLUS Loan
First Year
$5,500 (no more than $3,500 may be subsidized) $4,000
Second Year
$6,500 (no more than $4,500 may be subsidized) $4,000
Third Year & Beyond
$7,500 (no more than $5,500 may be subsidized) $5,000
Independent Undergraduates
First Year
$5,500 (no more than $3,500 may be subsidized) $4,000
Second Year
$6,500 (no more than $4,500 may be subsidized) $4,000
Third Year & Beyond
$7,500 (no more than $5,500 may be subsidized) $5,000
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