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 cease half-time enrollment.


Direct Loan Interest Rates

Direct Loan Interest Rates Direct Loan *Fees
Academic Year Subsidized Unsubsidized Graduate Effective October 1st of every year
2018-2019 5.05% 5.05% 6.60% 1.066%**
2017-2018 4.45% 4.45% 6% 1.066%
2016-2017 3.76% 3.76% 5.31% 1.069%
2015-2016 4.29% 4.29% 5.84% 1.068%
2014-2015 4.66% 4.66% 6.21% 1.073%
2013-2014 3.86% 3.86% 5.41% 1.072%
**Loan Fees are valid thru September 30, 2018

Direct Loan Borrower Annual and Lifetime Aggregate Loan Limits

Annual Loan Limits
Grade Level Maximum Subsidized Unsubsidized Total Yearly Amounts
Freshman (DEP) $ 3,500 $ 2,000 $ 5,500
Sophomore (DEP) $ 4,500 $ 2,000 $ 6,500
Junior (DEP) $ 5,500 $ 2,000 $ 7,500
Senior (DEP) $ 5,500 $ 2,000 $ 7,500
Undergraduate (DEP) Lifetime Limit $ 23,000 $ 8,000 $ 31,000
Freshman (INDEP) $ 3,500 $ 6,000 $ 9,500
Sophomore (INDEP) $ 4,500 $ 6,000 $ 10,500
Junior (INDEP) $ 5,500 $ 7,000 $ 12,500
Senior (INDEP) $ 5,500 $ 7,000 $ 12,500
Undergraduate (INDEP) Lifetime Limit $ 23,000 $ 34,500 $ 57,500
Graduate - $ 20,500 $ 20,500
Graduate Lifetime Limit - - $ 138,500
 

Average Loan Indebtedness for the Graduate Class of 2015

Number of Borrowers Percent of Graduating Class Average Borrowed
944 72% $16,854
 

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 Dec 1st, 2014 and August 31st, 2015.

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

  1. Complete the Free Application for Federal Student Aid (FAFSA).
  2. Complete your financial aid file.
  3. When you receive your award letter, sign into myUCCS Self Service to accept, reduce, or decline your loan(s).
  4. Complete Direct Loan entrance counseling.
  5. Complete a Master Promissory Note.
  6. Enroll in at least 6 credit hours for undergraduate students or 3 credit hours for graduate students.
  7. Maintain satisfactory academic progress.

Direct Loan Borrower Rights and Responsibilities

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