Federal Direct Loans

Subsidized Federal Direct Loans (Undergraduate Only)

Subsidized Direct Loans are awarded to students with demonstrated financial need. Interest is subsidized (paid) by the government while the student is in school and during the six-month grace period after the student leaves school or drops below half-time enrollment status*. Loans enter repayment at the end of the grace period.

On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21) was enacted. As part of the MAP-21 Act, a first-time borrower’s eligibility for Federal Direct Subsidized Loans is limited to a period not to exceed 150 percent of the length of the borrower’s educational program. After this limit has been reached, students may only borrow unsubsidized loans and interest will begin to accrue on all previously borrowed subsidized loans.

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*Interest will be charged during the six-month grace period for subsidized loans disbursed between July 1, 2012 and June 30, 2014.

Unsubsidized Federal Direct Loans (Undergraduate/Graduate)

Unsubsidized Direct loans are available to all students regardless of income. Interest accrues from the date of disbursement, but the extra costs of accrual can be avoided by making regular interest payments while in school. Loans enter repayment six months after the student graduates or ceases half-time enrollment.

Direct Loan Interest Rates

Direct Loan Interest Rates
Academic Year Subsidized Unsubsidized Graduate
2014-15 4.66% 4.66% 6.21%
2013-14 3.86% 3.86% 5.41%
2012-13 3.40% 6.80% 6.80%
2011-12 3.40% 6.80% 6.80%

Direct Loan Fees

The origination fee for Stafford Loans is 1.072%.

Beginning October 1st, 2014, the origination fee for Stafford Loans is 1.073%.

Direct Loan Borrower Annual and Aggregate Loan Limits

Annual Loan Limits
Grade Level Maximum Subsidized Unsubsidized Total Yearly Amounts
Freshman (DEP) $ 3,500 $ 2,000 $ 5,500
Freshman (INDEP) $ 3,500 $ 6,000 $ 9,500
Sophomore (DEP) $ 4,500 $ 2,000 $ 6,500
Sophomore (INDEP) $ 4,500 $ 6,000 $ 10,500
Junior/Senior (DEP) $ 5,500 $ 2,000 $ 7,500
Junior/Senior (INDEP) $ 5,500 $ 7,000 $ 12,500
Graduate - $ 20,500 $ 20,500

Aggregate Loan Limits
Classification Maximum Subsidized Unsubsidized Maximum Total
Undergraduate (DEP) $ 23,000 $ 8,000 $ 31,000
Undergraduate (INDEP) $ 23,000 $ 34,500 $ 57,500
Graduate - - $ 138,500

Average Loan Indebtedness

Average Loan Indebtedness for the graduating class of 2013 (1140 Students)
Number of Borrowers Percent of Graduating Class Average Borrowed
853 75% $16,780

All Loans includes Federal Direct loans (subsidized and unsubsidized). Federal Perkins loans, PLUS loans, and private alternative loans are not included in the average.

The graduating class is comprised of students graduating with undergraduate degrees between Jan 1st, 2013 and December 31st, 2013.

The method used to generate these statistics is based on the Common Data Set reporting process.

How to apply for a Direct Loan at UCCS

Direct Loan Borrower Rights and Responsibilities

As a Direct Loan borrower, you are expected to understand your rights and responsibilities.