What is a federal direct loan?
A long-term federal loan which students begin to repay six months after graduation or a drop below half-time enrollment. The interest rate for graduate students is fixed.
Master-degree seeking students must be enrolled at least half-time per term; be enrolled in classes that count toward the degree. The student must be a U.S. citizen or an eligible non-citizen; males must have registered for the Selective Service.
Can I get a Subsidized Loan?
The Budget Control Act of 2011 made two significant changes to the graduate loan program. Effective with the 2012-2013 academic year, graduate students were no longer eligible for SUBSIDIZED loan funds. Subsidized loans are loans that the federal government paid the interest while the student was enrolled in school and at times of deferment. Going forward, all federal loans are unsubsidized for graduate students. The Loan Rebate was also eliminated.
What is an Unsubsidized Loan?
An unsubsidized loan is when the student is responsible for the interest while enrolled in school. Interest begins to accrue on the day that funds are disbursed. The interest can be paid quarterly or capitalized and added to the loan principal.
How much can I borrow?
Graduate students may qualify up to $20,500 of unsubsidized funds per academic year from the Federal Direct Unsubsidized Loan program. In most circumstances, students will apply for the entire academic year at one time. The loan will disburse equally each term. A student needs to reapply each academic year.
Graduate students may borrow up to a lifetime amount of $138,500 from the Federal Direct Unsubsidized Loan program.
Is there a fee for my direct loan?
Students pay an Origination Fee to the Department of Education. The fee is a percentage of the amount borrowed. Fees are deducted before the loan is disbursed into the student's account. The fee changes on October 1 of each year.
How do I apply?
There are four steps for to apply for a Federal Direct Unsubsidized Loan.
- Borrowers must complete the FAFSA. If selected for Verification, the school will mail further instructions to the student. (PTS School Code = G03356)
- Complete a Federal Direct Loan Master Promissory Note at www.StudentLoans.gov.
- Complete a Federal Entrance Counseling Session at www.StudentLoans.gov.
- For 2017-2018 academic year, submit the "PTS Direct Loan Request Form- Master Degree" to the Financial Aid Office.