Student loans may be a source of funding for your college education. There are a variety of student loan options for you to consider. The biggest difference between loans and other forms of funding is that you are required to pay loans back, which many times includes interest.
Federal Direct Loan
The Federal Direct Loan is a low interest loan made to eligible undergraduate and graduate students enrolled in atleast six credits or more. With Direct Loans you:
- Borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center—for everything related to the repayment of your loans.
- Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the Web at: www.studentloans.gov.
- Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
- Have many deferment or cancellation options.
Direct Loan - Subsidized
This loan is available to undergraduate students only with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.
Direct Loan - Unsubsidized
This loan is an alternative funding source for students who need additional funding to meet the cost of education. The Unsubsidized Direct Loan is not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.
Direct Loan Interest Rates
Loans disbursed between July 1, 2013 and June 30, 2014 will have the following interest rate.
- Undergraduate Subsidized: 3.86%
- Undergraduate Unsubsidized: 3.86%
- Graduate/Professional Unsubsidized: 5.41%
Direct Loan Fees and Rebates (subsidized & unsubsidized)
Origination Fee: There is a 1.051% origination fee that the Department of Education applies to all Federal Direct Subsidized and Federal Direct Unsubsidized loan disbursements.
Federal Direct Subsidized and Federal Direct Unsubsidized loan disbursements on or after December 1st will have an origination fee of 1.072% due to Sequestration.
Federal Direct Loan for Graduate Students (GradPLUS)
This loan, borrowed directly from the federal government, is an alternative funding source for graduate/professional students who need additional funding to meet the cost of education. Financial need is not required to be eligible to borrow a Federal Direct GradPLUS Loan.
- Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Direct Loan Program before applying for a GradPLUS loan.
- The GradPLUS loan borrower (or the cosigner if required) must not have an adverse credit history.
- Graduate/Professional students who are enrolled at least half-time (six or more credits) may borrow up to the cost of education minus other aid.
- Repayment of the GradPLUS loan begins on the date of the last disbursement. Under certain circumstances, deferment and forbearance options may be available. Interest continues to accrue and must be paid during periods of deferment or forbearance.
Direct GradPLUS Interest Rate and Fees
Direct GradPLUS loans have a fixed interest rate of 6.41% for disbursements between July 1, 2013 and June 30, 2014. Borrowers are charged a 4.204% origination fee. The entire fee goes to the government to help reduce the cost of the loans.
Some of the benefits of a Direct GradPLUS loan:
- The interest may be tax deductible.
- The GradPLUS loan may be repaid any time without penalty.
- GradPLUS loans can be consolidated with Stafford Loans, Direct Loans and other eligible federal education loans into one convenient, longer-term fixed-rate loan.
- Loan payments may be deferred while enrolled in school and reduced or deferred in times of economic hardship, if not in default.
Private Education Loans
Private Education Loans are available to students as an option if the aid that the student has been awarded does not cover all of the student's educational expenses and the student has exhausted their eligibility for the Federal loan programs.
Private Education Loans are not based on financial need, although most lenders will evaluate the applicant's (and/or co-signer's) credit-worthiness.
Currently all private education loans are processed using a separate application, which can be obtained from the participating lender or online at the lender's website.
Please note: If you do not have a current FAFSA on file, a FAFSA Refusal Addendum must be completed in addition to the loan application:
2013-2014 Private Loan FAFSA Refusal Form (Fall 2013, Spring 2014, Summer 2014)
Canadian Higher Education Loan Fund
This loan is for Canadian citizens and is open to undergraduate and graduate students. The minimum loan is $2000 USD and the interest rate is variable.
For information and application: call 1-888-296-4332 or visit www.iefc.com.
Global SLC International Student Loan
This loan is for international students from India (other countries of origin in the future) enrolled in a U.S. college. You are not required to have a U.S. Citizen as a co-signer, but must have a co-signer in India. The interest rate is variable.
Funds may cover tuition, books, room and board, and other education-related expenses. The maximum annual loan amount is $50,000 USD and maximum lifetime amount is $200,000 USD. Annual amounts are limited by the school's determination of a student's "cost of attendance." This cost of attendance is based on average amounts for tuition/fees, books and living expenses. Individual student unusual expenses may also be considered.
Funds will be disbursed to the school in U.S. dollars and credited by the school to your account at the school and used only to pay your education-related expenses as certified by the school during the certification process. The school's normal "refund policy" may be used in cases where there are funds remaining after school defined "debits" have been paid.
For more information and application: www.globalslc.com.
Students who borrow private or institutional educational loans are required to complete the Private Loan Self-Certification Form for each loan requested before loans can be disbursed. Your forms will be sent to you by your lender. Learn more
Loan Counseling Information
All of the federal student loan programs require that a student complete an Entrance Loan Counseling Session before funds may be released.
Students are also required to complete an Exit Loan Counseling Session if they drop below half-time enrollment, withdraw, or before the end of their last term of enrollment at UND.
The National Student Loan Data System (NSLDS) Student Access site is available for students to view their loan and grant records and obtain balance and loan holder.
Loan Consolidation Information
The U.S. Department of Education's Guide to Defaulted Student Loans provides information for borrowers whose Stafford, PLUS, Perkins and/or Direct Loans are in default status.This site also provides information regarding consolidation of these loan programs.