Students who are first-time borrowers of the Federal Direct Stafford Loans, must complete an electronic Master Promissory Note (MPN) and on-line Entrance Loan Counseling to receive the funds. In most cases, the student will be required to complete the MPN and entrance counseling session only once during their years in college.  Each year students will need to accept their loan(s) on the Student Loan Confirmation page in MyUI.

Obtain information regarding grace periods and repayment plans from the Federal Student Aid web site.

Important information for graduate and professional students:  The interest subsidy has been eliminated on Federal Direct Student Loans for periods of enrollment beginning on or after July 1, 2012. To find out how this may impact you, go to our Graduate and Professional Federal Direct Loans web page.

Lender:  Federal Government

Interest Rate - Undergraduate Students

  • Fixed at 4.45% for loans disbursed July 1, 2017 - June 30, 2018
  • Fixed at 3.76% for loans disbursed July 1, 2016 - June 30, 2017
  • Fixed at 4.29% for loans disbursed July 1, 2015 - June 30, 2016
  • Fixed at 4.66% for loans disbursed July 1 , 2014 - June 30, 2015
  • Fixed at 3.86% for loans disbursed July 1, 2013 - June 30, 2014
  • Fixed at 3.4% for loans disbursed July 1, 2011 - June 30, 2013

Interest Rate Cap:  8.25% for loans disbursed on or after July 1, 2013

Interest Free in School:  Yes

Loan Fee

  • 1.069% for loans disbursed October 30, 2016 - September 30, 2017
  • 1.068% for loans disbursed October 1, 2015 - September 30, 2016
  • 1.073% for loans disbursed October 1, 2014 - September 30, 2015
  • 1.072% for loans disbursed December 1, 2013 - September 30, 2014
  • 1.051% for loans disbursed July 1, 2013  - November 30, 2013
  • 1.0% for loans July 1, 2010 - June 30, 2013

Annual Maximums
(If you change grade levels mid-year, you may be eligible for an increase in your loan amount.)

  • $3,500 freshman (0-29 earned hours)
  • $4,500 sophomore (30-59 earned hours)
  • $5,500 junior and senior (60+ earned hours)

Cumulative Maximums

  • $23,000 undergraduate
  • $65,500 graduate (includes amount borrowed as undergraduate)

Grace Period:  6 months