The Federal Perkins and Federal Direct Subsidized Student loans are awarded on the basis of financial need as determined by the FAFSA and have no interest accruing while the student is enrolled in school.
Federal Perkins Loans: These loans are given to students with demonstrated financial need (based on the FAFSA), typically in areas of study that qualify for cancellation of this loan and those who submitted their FAFSA information by March 1st. The rate of interest during the repayment period is 5%. The University is responsible for collection of these loans. Repayment begins 9 months after graduation or discontinuance of at least half-time enrollment. The Federal Perkins Loan has provisions for cancellation and deferment.
Federal Direct Subsidized Student Loans: These are low-interest, fixed interest rate federal loans borrowed through the federal government. A Subsidized loan means that the government pays the interest on your loan while you are in school, in your grace period, or in deferment. A student must complete a FAFSA and a Master Promissory Note (MPN) at www.studentloans.gov to apply for this loan. Other steps such as Federal Verification may be necessary to be eligible. Students who have not borrowed, have a $0 balance, or haven't borrowed for ten or more years must also completed entrance counseling at this website. For continuing students who have completed an MPN in a prior year, loans can be accepted through the student portal. Repayment begins 6 months after graduation or discontinuance of at least half-time, degree-seeking enrollment. If any of these take place, a student should complete exit counseling at www.nslds.ed.gov to better understand repayment and their options.
Federal Direct Unsubsidized Student Loans: Students who do not qualify or only qualify for part of the Subsidized Loan based on need, are eligible for the Unsubsidized Loan; the difference being that the government does not pay the interest on this loan while the student is in school. Payments of principle and interest may be deferred while enrolled at least half-time as a degree-seeking student. Repayment begins 6 months after graduation or discontinuance of at least half-time, degree-seeking enrollment.