Federal Direct Subsidized Loans

Federal Direct Subsidized Loans are offered to undergraduate students with financial need as determined by the FAFSA to help cover the costs of higher education at a college or career school. The US Department of Education pays the interest on the Direct Subsidized Loan:

  • While you are in school at least half-time, (6 or more credits per semester)
  • For the first six months after you leave school (referred to as a grace period), and
  • During a period of deferment (a postponement of loan payments)

The current fixed interest rate for undergraduate subsidized loans disbursed on or after July 1, 2020, is 2.75%, with a loan origination fee of 1.057%. Rates and fees are subject to change and current rates can be found at https://studentaid.ed.gov/sa/types/loans/interest-rates .

Repayment begins six months after you graduate, drop below half-time or withdraw. Federal Direct Loans will be prorated for any undergraduate student who enrolls in only one semester and will graduate in that same term or academic year. The prorated amount is equal the number of credits enrolled in divided by 24 credits. Student should never take more credits then they need to graduate.

In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program of study. For more information, please review the U.S. Department of Education's Federal Student Aid announcement concerning this https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized - eligibility-time-limit .

Federal Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.

  • The US Department of Education does NOTpay the interest on the Direct Unsubsidized Loan
  • Interest accrues beginning on the date the loan first disburses.
  • You are responsible for the interest during all periods of enrollment and non-enrollment
  • Students may elect to pay the interest while enrolled in school or request to defer payment on the interest.
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and capitalize (that is, your interest will be added to the principal amount of your loan).

The current fixed interest rate for unsubsidized loans disbursed on or after July 1, 2020, is 2.75% for undergraduate students. All loans will also incur an origination fee of 1.057%. Rates and fees are subject to change and current rates can be found at https://studentaid.ed.gov/sa/types/loans/interest-rates .

Repayment begins six months after you graduate, drop below half-time or withdrawal. Federal Direct Loans will be prorated for any undergraduate student who enrolls in only one semester and will graduate in that same term or academic year. The prorated amount is equal the number of credits enrolled in divided by 24 credits. Students should never take more credits then they need to graduate.

 


Contact Information:

Mailing Address:

Financial Aid Office
2100 16 Avenue South
Great Falls, MT  59405

Voice: 406.771.4334   
FAX: 406.771.4410 
Email: finaid@gfcmsu.edu

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