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Federal Direct Loans

2014-15 Federal Direct Loan Interest Rates:

The 2014-15 interest rates are as follows:

  • Direct Subsidized and Unsubsidized Loans for undergraduate students: 4.66 % fixed for the life of the loan.
  • Direct Unsubsidized Loan for graduate students: 6.21 % fixed for the life of the loan.

Federal Direct Subsidized Loans for Undergraduate Students

A Federal Direct Subsidized Stafford  Loan is a need-based loan available to undergraduate students to assist with educational costs. These loans are funded and insured by the federal government. The federal government pays the interest on the Subsidized loans while you are enrolled full-time and repayment is deferred until after graduation or when you cease to enroll in school at least half-time.

Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Stafford Loan is available to undergraduate and graduate students.  These loans are funded and insured by the federal government. Unlike the Federal Direct Subsidized Stafford Student Loan, interest accrues ion the Unsubsidized Loan and is added to the principal of the loan.  Interest only payments can be made while you are enrolled in school. Amounts vary by grade level; please the chart see below.

To Apply for Federal Student Loans

For step by step online instructions, click here.

In addition to completing the FAFSA each year, first-time student loan borrowers at CalArts must complete the two steps below once before the first year they borrow loans:

Step 1. Complete a Master Promissory Note (MPN, loan application) online:  

Step 2. Complete Direct Loan Entrance Counseling:

Direct Loan Exit Counseling

Graduating or withdrawing students who have borrowed under the Federal Direct Loan Programs are required to complete exit counseling before leaving school.

Annual and Aggregate Loan Limits

The following chart provides maximum annual and aggregate (total) loan limits for subsidized and unsubsidized Direct Stafford Loans.

NOTE: Dependent Undergraduate students whose parents do not qualify for the PLUS Loan may be eligible for additional Unsubsidized Loan.

Year in School*

Dependent Undergraduate Student

Independent Undergraduate Student (and dependent students whose parents are not eligible for PLUS Loans)

First Year

$5,500, no more than $3,500 of which may be in subsidized loans.

$9,500, no more than $3,500 of which may be in subsidized loans.

Second Year

$6,500, no more than $4,500 of which may be in subsidized loans.

$10,500, o more than $4,500 of which may be in subsidized loans.

Third and Beyond (each year)

$7,500, no more than $5,500 of which may be in subsidized loans.

$12,500, no more than $5,500 of which may be in subsidized loans.

Maximum Total Debt from Direct/Stafford Loans When You Graduate (aggregate loan limits)

$31,000, no more than $23,000 of which may be in subsidized loans.

$57,500, no more than $23,000 of which may be in subsidized loans.

     

* Graduate Students may borrow a maximum of $20,500 Unsubsidized Loan per

Last edited by rbaileychen on Jun 18, 2014
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