Federal Student Loan Types & Repayment Options

 
ANNUAL LIMITS FOR SUB/UNSUB LOANS Subsidized Total (subsidized and unsubsidized)
Dependent Undergraduates (whose parent did not apply for or was approved for a Parent PLUS Loan)
Freshman $3,500 $5,500
Sophomore $4,500 $6,500
Junior and higher $5,500 $7,500
Independent Undergraduates & Dependent Undergraduates (whose parent was denied for a Parent PLUS Loan)
Freshman $3,500 $9,500
Sophomore $4,500 $10,500
Junior and higher $5,500 $12,500
Graduate Students (Master's, Specialist, Doctoral only. Certificate programs are considered undergraduate.)
All years Not eligible $20,500
  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Dependent Undergraduates (whose parent did not apply for or was approved for a Parent PLUS Loan)

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Freshman
    Subsidized: $3,500
    Total (subsidized and unsubsidized): $5,500

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Sophomore
    Subsidized: $4,500
    Total (subsidized and unsubsidized): $6,500

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Junior and higher
    Subsidized: $5,500
    Total (subsidized and unsubsidized): $7,500

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Independent Undergraduates & Dependent Undergraduates (whose parent was denied for a Parent PLUS Loan)

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Freshman
    Subsidized: $3,500
    Total (subsidized and unsubsidized): $9,500

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Sophomore
    Subsidized: $4,500
    Total (subsidized and unsubsidized): $10,500

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Junior and higher
    Subsidized: $5,500
    Total (subsidized and unsubsidized): $12,500

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: Graduate Students (Master's, Specialist, Doctoral only. Certificate programs are considered undergraduate.)

  • ANNUAL LIMITS FOR SUB/UNSUB LOANS: All years
    Subsidized: Not eligible
    Total (subsidized and unsubsidized): $20,500

 

AGGREGATE LIMITS FOR SUB/UNSUB LOANS Subsidized Total (subsidized and unsubsidized)
Dependent Undergraduates (whose parent did not apply for or was approved for a Parent PLUS Loan) $23,000 $31,000
Independent Undergraduates & Dependent Undergraduates (whose parent was denied for a Parent PLUS Loan) $23,000 $57,500
Graduate Students (Master's, Specialist, Doctoral only. Certificate programs are considered undergraduate.) $65,000 $138,500
  • AGGREGATE LIMITS FOR SUB/UNSUB LOANS: Dependent Undergraduates (whose parent did not apply for or was approved for a Parent PLUS Loan)
    Subsidized: $23,000
    Total (subsidized and unsubsidized): $31,000

  • AGGREGATE LIMITS FOR SUB/UNSUB LOANS: Independent Undergraduates & Dependent Undergraduates (whose parent was denied for a Parent PLUS Loan)
    Subsidized: $23,000
    Total (subsidized and unsubsidized): $57,500

  • AGGREGATE LIMITS FOR SUB/UNSUB LOANS: Graduate Students (Master's, Specialist, Doctoral only. Certificate programs are considered undergraduate.)
    Subsidized: $65,000
    Total (subsidized and unsubsidized): $138,500

Subsidized Loan

This loan program allows you to borrow directly from the government at a low interest rate if you have financial need and are attending at least half-time (6 hours or more for undergraduates). No repayment is due and no interest accrues until 6 months after you graduate, leave school, or cease to be enrolled half-time. Graduate students are not eligible for subsidized student loans. 

Loans disbursed between July 1, 2016 to June 30, 2017 have a fixed interest rate of 3.76%. The rate is subject to change each year. Origination fees are deducted from the original loan amount that you accept. The current origination fee is 1.068%. Loans disbursed on or after October 1, 2016 will have an origiantion fee of 1.069%. As a first time borrower at UWG, you will be required to complete a Loan Entrance Counseling Session and an electronic Master Promissory Note (MPN). Both of these requirements can be completed online at www.studentloans.gov by signing in with your PIN. You will also be required to complete an Exit Counseling Session if you graduate, transfer to another school, withdraw from school, or drop below half-time.

Unsubsidized Loan

This loan program allows you to borrow directly from the government at a low interest rate if you are attending at least half-time (6 credit hours or more for undergraduates, 5 hours or more for regular graduate students). No repayment is due on the loan until 6 months after you graduate, leave school, or cease to be enrolled half-time. Interest begins to accrue while you are in school.

For undergraduate students, loans disbursed between July 1, 2016 to June 30, 2017 have a fixed interest rate of 3.76%.
For graduate students, loans disbursed between July 1, 2016 to June 30, 2017 have a fixed interest rate of 5.31%.
It is strongly recommended that you pay the accruing interest while you are in school. Origination fees are deducted from the original loan amount that you accept. The current origination fee is 1.068%. Loans disbursed on or after October 1, 2016 will have an origiantion fee of 1.069%. 

Parent PLUS Loan

This loan is available to parents of dependent undergraduate students, regardless of financial need. The loan requires a separate application and is approved based on the parents' credit history. For instructions on applying for a Parent PLUS Loan, please use the Parent PLUS Loan Application Instruction Sheet.

The current interest rate is fixed at 6.31% for loans disbursed between July 1, 2016 to June 30, 2017. The interest rate is subject to change each year. The interest begins to accrue the day the loan is disbursed and repayment begins within 60 days, with a minimum monthly payment of $50. You may request a deferment on the loan while your student is enrolled at least half-time. If the loan is deferred, interest will accrue during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Origination fees are deducted from the original loan amount that you accept. The current origination fee is 4.272%. Loans disbursed on or after October 1, 2016 will have an origiantion fee of 4.276%. 

A Master Promissory Note (MPN) must be completed online at www.studentloans.gov by the borrower to receive the loan. This is a separate Master Promissory Note than what is completed by the student. In order for the parent to receive the over-payment (refund) of this loan, they must make a special request to the Bursar's Office (Aycock Hall). Without this request, the over-payment funds (refund) will be issued directly to the student.

Graduate PLUS Loan

This loan program allows regular graduate students (pursuing a graduate or professional degree) to borrow an amount up to the cost of attendance, minus any other financial aid, regardless of need. The loan is approved based on the student's credit history. Students must first borrow the annual maximum amounts allowed under the unsubsidized loan program before submitting a Graduate PLUS Loan Application. The Graduate PLUS Loan application must be completed online at: www.studentloans.gov. The Financial Aid Office will determine your eligibility after your approved application is received. 

The current fixed interest rate is 6.31% for loans disbursed between July 1, 2016 to June 30, 2017. The interest rate is subject to change each year. Interest begins to accrue the day the loan is disbursed. No repayment is due on the loan while you are enrolled at least half-time. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Origination fees are deducted from the original loan amount that you accept. The current origination fee is 4.272%. Loans disbursed on or after October 1, 2016 will have an origiantion fee of 4.276%. 

A separate Master Promissory Note (MPN) and Loan Entrance Counseling Session must be completed online at www.studentloans.gov by the student to receive the loan.

Repayment Options

Most federal student loans have a grace period before you enter repayment of six months after you graduate, leave school, or drop below half-time enrollment. Interest does accrue during your grace period for unsubsidized student loans.

  • Direct Subsidized and Unsubsidized loans have a six-month grace period before payments are due.
  • PLUS Loans (Parent and Graduate) have no grace period, but they may be eligible for a deferment. You will want to check into this option when considering applying for a PLUS Loan.

The U.S. Department of Education uses several loan services to handle the billing for all Direct Loans. Your federal loan servicer will contact you prior to your grace period. Please do not ignore the messages from your servicer. They will be providing valuable information regarding your account and repayment. Once you have selected your repayment plan, you will make payments to your loan servicer. For more information on repayment of federal student loans, please click here.

The Department of Education offers a "Repayment Estimator" that allows you to get an early look at which repayment plans you may be eligible for. It also allows you to see estimates of how much you would pay monthly and overall for your federal student loans. *Private student loans are not included in the Repayment Estimator.*

Direct Loan Repayment Plans

The Department of Education currently offers 7 different repayment plan options (listed below). To compare each of these plans, please click here.

If you have multiple federal student loans, you can consolidate those loans into a single Direct Consolidation Loan. This could simplify repayment if you are making separate loan payments to different loan servicers, as you would only have one monthly payment to make. You will want to consider the advantages and disadvantages before consolidating.