Types of Federal Student Loans

William D. Ford Federal Direct Loan Program

General Eligibility:

  • U.S. citizen or eligible non-citizen
  • Minimum half-time enrollment

Direct Stafford Unsubsidized Loan:

This is a non-need based loan with interest starting to accrue upon disbursement. Student has option to postpone payment of interest which is then capitalized (added to principal balance).

Continued Eligibility:

You must make satisfactory academic progress to continue receiving loans and financial aid. Please refer to the satisfactory academic progress policy for further information.

Interest and Fees:

Interest fixed at 6.8 percent

Loan fee of 1.0 percent of the principal amount charged for each Direct Loan that you borrow. The total fee is reduced to 0.5 percent due to an "up front" rebate equal to 0.5 percent of the principal amount.

Repayment:

Six months after you graduate or drop below half-time unless you have previously used your grace period. Standard repayment is ten years.

Federal Direct Graduate PLUS Loan

General Eligibility:

  • Apply for the maximum amount of Direct Stafford loan
  • You must be a U.S. citizen or eligible non-citizen and have a valid Social Security number.
  • You must meet basic eligibility requirements. If you cannot meet the requirements, you may be eligible if you have a creditworthy endorser/cosigner.

Continued Eligibility:

You must make academic progress to continue receiving loans and financial aid. Please refer to the satisfactory academic progress policy for further information.

Amount:

You may borrow up to the cost of attendance, minus any other aid, scholarship or loans.

Interest and Fees:

Fixed at 7.9 percent

The 4 percent loan fee is reduced to 2.5 percent due to an "up front" rebate equal to 1.5 percent of the principal amount.

Repayment:

Begins within 60 days of the last disbursement. Option to postpone payment is available while the student is in school at least half-time.

Detailed information is available at www.studentaid.ed.gov.

For more information, please contact Ms. LaNae Herrera, Director of Financial Aid, at financialaid@iwp.edu or 202-462-2101 x315.