Federal Perkins Loan
Available to undergraduate students. The loan is interest free as long as student is enrolled at least half time at an eligible institution. Repayment of the principal plus 5% interest per year begins nine months after the student leaves school or graduates. Loan eligibility is based on need.
Federal Subsidized Direct Loan

Available to undergraduate students. To be eligible, students must complete the Free Application for Federal Student Aid (FAFSA) and show financial need. The loan is interest free as long as student is enrolled at least half time. Repayment at a fixed interest rate of 3.4% for loans disbursed after July 1, 2012. A 1% Origination Fee will be deducted from each semester's loan amount.

The interest subsidy during the six month grace period is eliminated for new Direct Loans made on or after July 1, 2012 and before July 2, 2014. The repayment period still begins 6 months after the student is no longer enrolled at least half-time, but interest will accrue during those 6 months of grace period, and will be payable by the borrower rather than subsidized by the federal government.

The maximum amount students may borrow is:

Federal Unsubsidized Direct Loan
Available to undergraduate and graduate students. This loan is not based on need. However, the student must complete the FAFSA. Effective July 1, 2012 the interest on this loan is 6.8% and the student is responsible for the interest while in school. A 1% Origination Fee will be deducted from each semester's loan amount.
Dependent Students - the academic year borrowing limits are as follows:
Time frame Subsidized Amount Limit Additional Unsubidized Amount Total Annual Maximum subsidized + unsubsidized
First year (1 - 29 credits) $3,500 $2,000 $5,500
Second year (30 - 59 credits) $4,500 $2,000 $6,500
Third year and beyond (60 or more credits) $5,500 $2,000 $7,500
Aggregate Borrowing Limit $31,000 (no more than $23,000 can be subsidized)

Independent Students - the academic year borrowing limits are as follows:

Time Frame Subsidized Amount Limit Total Annual Maximum: subsidized + unsubsidized
First year (1 - 29 credits) $3,500 $9,500
Second year (30 - 59 credits) $4,500 $10,500
Third year and beyond (60 or more credits) $5,500 $12,500
Aggregate Borrowing Limit $57,500 (no more than $23,000 can be subsidized)

Graduate Students - the academic year borrowing limits are:

Time Frame Total Annual Maximum: subsidized + unsubsidized
Every Year $20,500
Aggregate Borrowing Limit $138,500 (no more than $65,500 can be subsidized)
Federal Plus Direct Loan
This loan is available to parents of dependent undergraduate students. Eligibility is not based on need. Repayment is at a fixed interest rate (at 7.9%). Parent PLUS loan borrowers have the option of beginning repayment on the Parent PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least a half time basis. For each student in college, parents may annually borrow up to the cost of education minus other financial aid awarded.
Alternative Loan Program
Alternative loans are private loans through lending institutions and are not part of the federal student loan programs. Alternative loans are more expensive than the federal student loans and should only be used as a last option after all other options have been exhausted. We recommend students complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal and state aid before you turn to a private loan. If you decide you need an alternative loan, choose a loan that best meets your needs and borrow only what you need. Remember you will be required to pay the loan back. If you have no prior alternative loans, you may use FASTChoice to help you chose a lender. However, you are free to use any alternative loan lender of your choosing