Federal Direct Student Loans 2013-2014 Interest Rates
Applying for Federal Direct Loans
To apply for any Federal Direct Loans at UNC Asheville, you must first complete the Free Application for Federal Student Aid (FAFSA). Based on the information provided by the FAFSA, the Office of Financial Aid will award you the loans for which you qualify.
Federal Direct Subsidized Loan
Awarded on the basis of financial need as determined by the FAFSA. Students must be enrolled in at least 6 credit hours. The Federal government pays the borrower's accrued interest while the student is enrolled at least half-time, thereby "subsidizing" these loans. Repayment will be begin 6 months after the student is no longer registered at least 6 hours.
Grace Period Interest Subsidy - Public Law 112-74 amended HEA section 428(a)(3)(A)(i)(I) to temporarily eliminate the interest subsidy provided on Direct Subsidized Loans during the six month grace period provided to students when they are no longer enrolled on at least a half-time basis. This change will be effective for new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.
Federal Direct Unsubsidized Loan
Students must file a FAFSA and be enrolled in at least 6 credit hours. The borrower is responsible for accrued interest throughout the life of the loan. Repayment will be begin 6 months after the student is no longer registered at least 6 hours.
Freshmen (0-29 credit hours): $5,500
Sophomore (30-59 credit hours): $6,500
Junior (60-89 credit hours): $7,500
Senior (90+ credit hours): $7,500
The maximum total debt from Direct Loans that a dependent undergraduate may borrow is $31,000 (no more than $23,000 of which can be subsidized).
(Also for dependent undergraduates whose parents are denied a Direct PLUS Loan.)
Freshmen (0-29 credit hours): $9,500 (No more than $3,500 of this amount may be subsidized)
Sophomore (30-59 credit hours): $10,500 (No more than $4,500 of this amount may be subsidized)
Junior (60-89 credit hours): $12,500 (No more than $5,500 of this amount may be subsidized)
Senior (90+ credit hours): $12,500 (No more than $5,500 of this amount may be subsidized)
The maximum total debt from Direct Loans that an independent undergraduate may borrow is $57,500 (No more than $23,000 of of which can be subsidized).
Loan Interest Rates
The Direct Loan interest rates for 2013-14 are fixed as follows:
- 3.86% for Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students;
- 5.41% for Direct Unsubsidized Loans for graduate/professional students; and
- 6.41% for parent and graduate PLUS Loans.
These interest rates are effective for all Direct Loans with a first disbursement on or after July 1, 2013. The interest rates are calculated using a base 10-year Treasury Note Index of 1.81% plus an add-on amount for each loan program--2.05% for Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students, 3.60% for Direct Unsubsidized Loans for graduate/professional students, and 4.60% for parent and graduate PLUS.
Under the new interest rate structure, all Direct Loans except Direct Consolidation Loans will be “variable-fixed,” meaning students would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan. There are also interest rate caps at 8.25% for Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students, 9.50% for Direct Unsubsidized Loans for graduate/professional students; and 10.50% for parent and graduate PLUS. For Direct Consolidation Loans, the interest rate remains the weighted average of the interest rates of the loans included in the consolidation, rounded up to the next higher one-eighth of one percent, without a cap.
Loans where the first disbursement is made on or after December 1, 2013 will have the following orgination fees: 1.072% for Direct Subsidized Loans and Direct Unsubsidized Loans and 4.288% for Direct PLUS Loans (Both parent and graduate student PLUS Loans).
Each Academic Year: $20,500 (ENTIRELY Unsubsidized.)
The maximum total debt from Direct Loans that an MLA student may borrow is $138,500.
IMPORTANT Eligibility Requirements for MLA Students
Federal regulations state that a student must be AT LEAST half time to be eligible for Federal Direct Loans. According to Federal Regulations, "to be enrolled half time, a student must be taking at least half of the course load of a full-time student." At UNC Asheville, a full time Graduate schedule is at least 9 credit hours. Therefore, half of the 9 credit hour full-time course load would be rounded to 5 credit hours. Even though the UNC Asheville's MLA program states that 3, 4 and 5 credits are half time, for purposes of Federal Direct Loans, ALL MLA STUDENTS MUST BE ENROLLED IN AT LEAST 5 CREDIT HOURS TO BE ELIGIBLE FOR FEDERAL DIRECT LOANS.
Federal Direct Parent PLUS Loan
Available to parents of degree-seeking undergraduate dependent students who are enrolled in at least 6 credit hours. You must have a FAFSA on file to be eligible to apply for a PLUS Loan.
Direct PLUS loans beginning in the 2012-2013 Academic Year will have a 7.9% interest rate.
Federal Direct PLUS Loan Application
PLUS Loan Statement of Understanding
Parent PLUS Loan Adjustment Form
Entrance counseling is required for all first time borrowers.
Complete your Entrance Counseling here.
Master Promissory Notes (MPN)
Master Promissory Notes must be signed if you are a first time borrower or have not previously signed a Master Promissory Note with Direct Loan.
You may sign your Direct Loan MPN here.
Help - Contact Information
Have a question about Title IV federal student aid or one of the services the Department of Education provides? Contact one of our Customer Service Centers or Federal Student Aid Offices. If you are not sure which Service Center to call, contact the Research and Customer Care Center at 1.800.433.7327, or www.myedaccount.com.
Loan Servicing Centers for Students Direct Loan Servicing Center (ACS)
Overseas borrowers: 315.738.6634
Web site: www.myedaccount.com
Office Hours: 8:00 a.m. - 8:30 p.m. (ET), Monday through Friday.
Department of Education Student Loan Servicing Center (ACS)
TDD/TTY: 800.662.1220 within New York State
TDD/TTY: 800.855.2880 outside New York State
Web site: www.acs-education.com
Office Hours: 8:00 a.m. - 11:00 p.m. (ET), Monday through Friday.
FedLoan Servicing (PHEAA)
Overseas borrowers: 717.720.1985
Web site: www.myfedloan.org
Office Hours: 8:00 a.m. - 9:00 p.m. (ET), Monday through Friday.
Great Lakes Educational Loan Services, Inc.
Overseas borrowers: 608.246.1700
Web site: www.mygreatlakes.org
Office Hours: 7:00 a.m. - 8:45 p.m. (CT), Monday through Thursday. 7:00 a.m. - 5:45 p.m. (CT), Friday.
Overseas borrowers: 888.866.4352
Web site: www.mohela.com
Office Hours: 8:00 a.m. - 8:00 p.m. (CT), Monday through Thursday. 8:00 a.m. - 5:00 p.m. (CT), Friday.
Overseas borrowers: 303.696.3625
Web site: www.nelnet.com
Office Hours: 8:00 a.m. - 8:00 p.m. (ET), Monday through Friday.
Fax: 866.266.0178 (within United States)
Fax: 570.706.8563 (outside United States)
Overseas borrowers: If toll-free (no cost per call) number cannot be accessed, use 317.806.0580 (cost per call)
Web site: www.salliemae.com
Office Hours: 8:00 a.m. - 9:00 p.m. (ET), Monday through Thursday. 8:00 a.m. - 8:00 p.m. (ET), Friday.
Federal Loan Repayment
Your loans aren’t going to go away and you’ll want to repay them as quickly and easily as possible.
You will receive a notice on exit counseling when you graduate or attend school less than half-time. The exit counseling will provide information on your loans and when repayment begins.
When you graduate or withdraw you will have six months before your first payment is due. This is called a grace period. (PLUS Loans do not have a grace period). This time allows you to get financially settled, select your repayment plan and determine the amount of income you need to put toward your student loan each month.
There are flexible repayment options to help students manage this important financial responsibility. Contact your loan provider to discuss specific options.
Loan Repayment Calculators
Direct Lending Loan Calculators
For more information on repaying your student loans, please visit Student Aid on the Web.
A deferment is a period in which repayment of the principal balance is postponed. During a deferment, if the loan is subsidized, the government pays the interest charged. For unsubsidized, PLUS, unsubsidized consolidation, and PLUS consolidation loans in deferment, you are responsible for the interest that accrues during the deferment period. If you have unsubsidized loans, when you re-enter repayment at the end of the deferment period, any unpaid interest capitalizes (is added to the principal balance).
For complete information on deferment of your loan, contact your lender(s). If you are not eligible for a deferment you may still be eligible for a forbearance.
A forbearance is an arrangement to postpone or reduce your monthly payment amount for a limited and specific period during which you are charged interest. If you indicate a temporary inability, but willingness to pay the loan(s), you may ask for or be offered a forbearance. Interest that accrues during a forbearance is the responsibility of the borrower. When you re-enter repayment at the end of the forbearance period, any unpaid interest capitalizes (is added to the principal balance).
For complete information on the forbearance of your loan, contact your lender(s). If you are not eligible for a forbearance you may still be eligible for a deferment.
Who is/are my lender(s)?
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct/FFELP Loan program, and other Department of Education programs. Also login to www.myedaccount.com
NSLDS Student Access provides a centralized, integrated view of all loans and grants so that students can access and inquire about their loans and/or grant data.
More Information on Repaying Federal Student Loans
Student Aid on the Web has more information on repaying your student loans. We are also more than happy to discuss your options here in the office. Feel free to contact us.
Private Education Loans
Alternative Education Loans may be necessary for students who do not qualify for Federal Direct Loans or need additional funds to cover their cost of attendance. These loans are private loans offered by individual lenders that require the borrower to have good credit or to obtain a co-signer with good credit. Be advised that the interest rates are variable from lender to lender and are higher than those of Federal Direct Loans.
The Office of Financial Aid cannot certify any Alternative Education Loans until the student is enrolled in classes. In addition, the Office of Financial Aid will not certify any amount that takes the student over their cost of attendance.
Private Education Loan Self Certification Form
The Higher Education Opportunity Act (HEOA) added a section to the Truth In Lending Act to require that before a private educational lender may consummate a private education loan for a student in attendance at an institution of higher education, the private education lender must obtain the completed and signed Self-Certification Form from the applicant.