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General Loan Information

 

Austin Peay participates in the William D. Ford Federal Direct Loan Program.

With Direct Loans, you:

  • Borrow directly from the federal government and have a single contact - the Direct Loan Servicing Center - for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
  • Have online access to your Direct Loan account information 24 hours a day, 7 days a week through the Direct Loans Online Web Portal at http://studentloans.gov.
  • Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans needed.

Interest Rate and Repayment for subsidized loans

  • Subsidized loans taken between 7/1/2012-6/30/2013 are charged a fixed interest rate of 3.4%. The interest will not change throughout the life of the loan. There is no interest charged on your subsidized loan as long as you maintain half-time enrollment at the college. The interest rate varies each year on new loans and is adjusted each July 1st. The loan origination fee for subsidized loans is 1.05%.

Unsubsidized Loan

  • The unsubsidized loans are charged an interest rate of 6.8% and are available to students who do not qualify for the subsidized loan. The difference of the unsubsidized loan is that interest accrues while the student attends school. You are eligible to receive an unsubsidized Direct Loan to replace all or a portion of the family contribution if there is loan eligibility remaining. The loan origination fee for unsubsidized loans is 1.05%.

Interest Rate and Repayment for Unsubsidized loans

  • Beginning 7/1/2012 the interest rate is a fixed 6.8% during in-school, grace and deferment periods and is also 6.8% during repayment. The interest will not change throughout the life of the loan. If you borrow an unsubsidized Stafford Loan, you have the option of paying the interest as it accrues or you can let it be added to the principal of the loan. The interest rate varies each year on new loans and is adjusted each July 1st.

New Federal Regulations for first time borrowers whose loan is disbursed on or after July 1, 2013

  • Federal Direct Loan borrowers taking their first loan on or after July 1, 2013 may qualify for a subsidized Direct Loan for a maximum of 150% of the length of their academic program.  Students will be limited to receiving subsidized loans for 3 years in a 2 year program or 6 years in a 4 year program.  Students reaching this limitation could receive unsubsidized loans if eligible. Additionally, borrowers who reach the 150% limitation will have their interest subsidy end for all outstanding subsidized loans.

Subsidized Loan Limitation

Program LengthLimitation on subsidized Loan Eligibility
4-Year Bachelor's Degree6 Years of subsidized loan eligibility
2-Year Associates Degree3 Years of subsidized loan eligibility

Grace period Interest Subsidy - Consolidated Appropriations Act, 2012

  • Temporarily eliminates the interest subsidy on Direct Subsidized Loans during the six month grace period

Applies to new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.

Accrued grace period interest not paid will be capitalized.

Borrower could have some loans with interest subsidy and some without when in grace period.

Applying for Direct Loans is very simple:

  • Must complete the Free Application for Federal Student Aid (FAFSA).
    • You must indicate on your FAFSA that you are interested in student loans.
    • Be sure to add our school code to the list of schools you wish to send your FAFSA to. Our school code is: 003478.
  • We receive your FAFSA and will award you loans based on the current loan limit policies.
    • Your financial aid including loans, grants, scholarships cannot exceed your cost of attendance.
    • The maximum amount a student can borrow each year depends on your grade level and whether you are considered a dependent or independent student.
 Dependent StudentIndependent Student
1st Year Undergrad$5,500 (maximum $3,500 subsidized)$9,500 (maximum $3,500 subsidized)
2nd Year Undergrad$6,500 (maximum $4,500 subsidized)$10,500 (maximum $4,500 subsidized)
3rd & 4th Undergrad$7,500 (maximum $5,500 subsidized)$12,500 (maximum $5,500 subsidized)
Graduate/ProfessionalNA (All graduate and professional students are considered independent.)$20,500 - Unsubsidized Only
  • Aggregate loan limits for Direct Subsidized and Unsubsidized Loans:

$31,000 for dependent undergraduate students excluding those whose parents are unable to borrow a PLUS Loan (no more than $23,000 may be subsidized)

$57,500 for independent undergraduate students and dependent undergraduates whose parents are unable to borrow a PLUS loan (no more than $23,000 may be subsidized)

$138,500 for graduate or professional students

Important Information

Your aggregate loan limits include both Direct Subsidized and Unsubsidized Loans and any subsidized and unsubsidized Federal Stafford Loans received through the Federal Family Education Loan Program (FFELP).

 Ombudsman

  • If a borrower disputes the terms of the Federal Direct Loan in writing and the holder of the loan is unable to resolve the dispute, a borrower may seek the assistance of the Office of Education's Student Loan Ombudsman. The Student Loan Ombudsman will review and attempt to informally resolve your dispute and may be reached at 1-877-557-2575 or www.ombudsman.ed.gov. 
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