Federal Direct Loans can be obtained to pupils whom submit an application for educational funding utilizing the FAFSA.

Federal Direct Loans can be obtained to pupils whom submit an application for educational funding utilizing the FAFSA.

Direct Subsidized/Unsubsidized Loans

The attention prices are determined each June for brand new loans being created for the upcoming year that is award. Each loan could have an interest that is fixed for the life of the mortgage. These loans are fully guaranteed because of the government that is federal. The FAFSA could be the application that is only to get Federal Direct Loans but you must accept your loans on MaineStreet so that you can get them.

Repayment on Direct Loans is not required until a few months following the pupil will leave college, so long as the pupil stays enrolled at minimum half-time. Interest accrual although the learning pupil is in college is based on the sort of Direct Loan received (subsidized or unsubsidized). Unsubsidized Direct Loans will accrue interest whilst the pupil is with in college.

Rates Of Interest & Charges

The attention prices for Direct Loans by having a very first disbursement date on or after July 1, 2018 and prior to July 1, 2019 are:

  • 5.045% on Subsidized & Unsubsidized Undergraduate Direct Loans
  • 6.595% on Unsubsidized Graduate Direct Loan

The origination charge for the Direct Loan is 1.066% for loans originated on or after 1, 2017 and before October 1, 2018 october. For loans originated on or after 1, 2016 and before October 1, 2017, the origination fee was 1.069% october.

Annual and Lifetime Stafford Loan Borrowing Limits

Federal laws specify the utmost Federal Direct Loan quantity any pupil can borrow each year that is academic dependant on grade degree. Real eligibility is specified in the University of Maine Award Notification that can be significantly less than the yearly optimum:


Grade amount and Dependency Credit Hours Earned optimum Direct Subsidized Maximum complete Direct Loan(Subsidized and Unsubsidized)
Dependent first-year lower than 24 $3,500 $5,500
Dependent sophomore 24-53 $4,500 $6,500
Dependent junior or senior 54 and above $5,500 $7,500
Independent first-year lower than 24 $3,500 $9,500
Independent sophomore 24-53 $4,500 $10,500
Independent junior or senior 54 and above $5,500 $12,500
Graduate pupil any credit hours N/A $20,500

NOTE: Dependent students whoever moms and dads are denied a Federal Direct PLUS Loan meet the criteria for the student that is independent when there is a legitimate Direct PLUS Loan denial (dated within the past 12 months) on file with this office.

Life Direct Loan Limits

There are life time restrictions regarding just exactly how Stafford that is much loan can borrow. The restrictions, effective July 1, 2008, are the following:

Grade amount and Dependency Maximum Direct Subsidized optimum Total Direct Loan (Subsidized and Unsubsidized)
Dependent undergraduate $23,000 $31,000
Independent undergraduate $23,000 $57,500
Graduate pupil $65,500 $138,500

Note: The debt that is graduate includes loans gotten for undergraduate research.

Loan Repayment and Consolidation

Some pupils may choose to start thinking about consolidating their federal student education loans as a Consolidation Loan. This can be a choice who has both benefits and drawbacks, so make sure you investigate this option very very very carefully. To find out more on Consolidation Loans, click on this link.

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