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Federal Student Loans

Student loans have become an essential component in financing students' educational expenses. Loans must be repaid and therefore should be used wisely. If you accept a loan, you are responsible for repaying the loan plus interest. Remember that the more you borrow, the higher the monthly repayment will be, so only take as much loan money as you will need. To calculate your monthly repayment, use the following link: Repayment Calculators.

Federal Direct Loans 

The Federal Direct Loan Program is a federally sponsored national student loan program for undergraduate and graduate students. The Federal Direct Loan is awarded to you by the Financial Aid Office after completing an annual FAFSA application and can come in the form of a Subsidized or an Unsubsidized Loan (or a combination of both). Funds are borrowed directly from the federal government, and a 1% origination fee is applied to each loan. Your loans will be assigned to a servicer, who will be your point of contact in regards to repayment. You will receive a disclosure statement from your servicer regarding the amount of your loan and the anticipated disbursement dates. No payments are required until 6 months after you graduate or drop below half time enrollment. The maximum repayment period is 10 years, although through consolidation, that period may be extended.

If you are a first time borrower of Subsidized and Unsubsidized Direct Loans, you must complete Direct Loan Entrance Counseling and the Direct Loan Master Promissory Note (MPN). Go to: StudentLoans.gov and sign in using your FSA ID (Username and Password) to access the system. To complete Entrance Counseling, click on the "Complete Entrance Counseling" link and follow the instructions. After completing the session, click "Submit". 

To complete the Direct Loan MPN, sign in to StudentLoans.gov and click "Complete Master Promissory Note". You will be directed to three loan options. Click "Subsidized/Unsubsidized" and follow all instructions. Then sign the MPN and submit it. You'll receive a notification stating that your signature has been verified. Click on the blue hyperlink to "Review Master Promissory Note" for accuracy, then "Submit".

Subsidized Federal Direct Loan

Eligibility for the Subsidized Loan is based on financial need as determined by the federal processor and the Financial Aid Office. The Subsidized Loan does not accrue interest until a student graduates or drops below half time enrollment. Direct Subsidized Loans disbursed after July 1, 2016 have a fixed rate of 3.76% for the 2016-17 academic year. Graduate students are not eligible for this type of loan. 

Effective July 1, 2013, a first-time borrower is allowed to receive Federal Direct Subsidized loans (if eligible) for up to 150% of the published length of the program of study. You are a first-time borrower if you have no outstanding Federal Direct Stafford Loan balance as of July 1, 2013. For a 4-year bachelor's degree program, the maximum period of subsidized loan eligibility is 6 years. Read more information on the 150% Federal Direct Subsidized Loan Time Limit.

Unsubsidized Federal Direct Loan

Unlike the Subsidized Loan, financial need is not a requirement for the Unsubsidized Loan. The interest on the Unsubsidized Loan begins immediately upon disbursement and accrues at 3.76% for Undergraduate students for the 2016-17 academic year (5.31% for Graduate students). Students can pay the interest quarterly or allow the interest to add to the principal.

See table below for annual loan limits.                                                                                                                                                                                                                                  
  Dependent         Undergraduate Student Independent         Undergraduate
        Student*
    Graduate         Student
Freshmen
(up to 24 credits)

$5,500

       

(only $3,500 of this amount may be in subsidized loans)

$9,500

       

(only $3,500 of this amount may be in subsidized loans)
               

First to Fourth Years

Up to $20,500
        each academic year

       

(only $8,500 of this amount may be in subsidized loans)

       
Sophomores
(25 to 53 credits)

$6,500

       

(only $4,500 of this amount may be in subsidized loans)

$10,500

       

(only $4,500 of this amount may be in subsidized loans)
               

Maximum Total Debt

$138,500 as a graduate or professional student. The graduate debt limit includes Stafford Loans received for undergraduate study.

       

(only $65,000 of this amount may be in subsidized loans)

Juniors
(54 to 83 credits)

$7,500

       

(only $5,500 of this amount may be in subsidized loans)

$12,500

       

(only $5,500 of this amount may be in subsidized loans)
               

 
Seniors
(84+ credits)

$7,500

       

(only $5,500 of this amount may be in subsidized loans)

$12,500

       

(only $5,500 of this amount may be in subsidized loans)
               






Maximum Total Debt

$31,000 as a dependent undergraduate student

       

(only $23,000 of this amount may be in subsidized loans)

$57,500 as an independent undergraduate student

       

(only $23,000 of this amount may be in subsidized loans)

   

Federal Perkins Loan

The Federal Perkins Loan is available to both undergraduates and graduates with exceptional financial need. Funding is limited. No payments are due and no interest accrues on the loan until 9 months after you leave school or drop below half time enrollment status. 

UW-Parkside is your lender for the Perkins Loan, and you will make payments to the University through a Servicer called ECSI. The loan has a fixed interest rate of 5%, and borrowers have a maximum of 10 years to repay. Cumulative lifetime borrowing limits are $20,000 for an undergraduate and $40,000 for a graduate student. To calculate your monthly repayment, use the following link: Repayment Calculator. First time borrowers  must complete Perkins Entrance Counseling and a Master Promissory Note, which is separate and distinct from the Federal Direct Loan program.

The Perkins loan program  will expire on September 30, 2015.  New students for Fall 2015 may receive an award for the 2015-16 academic year only.  First time borrowers must complete entrance counseling and the promissory note and the award must disburse prior to the September 30th. 

Continuing Students will be eligible to continue to review the award if they meet certain criteria.

 

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