Undergraduate Student Loans : Financial Aid : UMass Lowell

Direct Loan Online Services:

William D. Ford Federal Direct Subsidized Loan:

Federally funded loan program available through the University
Eligibility determined on demonstrated financial need
Must complete FAFSA
Enrolled at least half time (6 credits)
Enrolled in a degree granting program
Students must complete an online Entrance Counseling
Students must complete an Electronic Master Promissory Note
Awards are based on grade level;
- $3,500 Freshman
- $4,500 Sophomore
- $5,500 Junior
- $5,500 Senior
Lifetime aggregate loan limit of $23,000 may not be exceeded
Students pay an origination fee
Interest rate effective July 1, 2008 fixed 6.0
The federal government pays the annual interest rate on the subsidized loans while the student is enrolled in school and during the six month grace period
Repayment starts six months after graduation, withdrawal, or when the student’s course load drops below half time (6 credits) status
Students must complete an Exit Counseling at point of graduation, withdrawal from school, or enrollment status drops below half time (6 credits) status
Loan that must be repaid

William D. Ford Federal Direct Unsubsidized Loan:

Federally funded loan program available through the University
Eligibility does not require demonstrated financial need
Must complete FAFSA
Enrolled at least half time (6 credits)
Enrolled in a degree granting program
Students must complete an online Entrance Counseling
Students must complete an Electronic Master Promissory Note
Awards are based on grade level and dependency status
Borrowers may receive both the subsidized and unsubsidized loans for the same loan period, although the combination of both cannot exceed the following loan limits:

Dependent Independent

Freshman: $5,500 $9,500

Sophomore: $6,500 $10,500

Junior: $7,500 $12,500

Senior: $7,500 $12,500

Dependent students whose parent/stepparent has been denied a Federal Direct Parent Plus Loan may apply for an additional Unsubsidized Federal Direct Student Loan of up to $4,000 for freshmen and sophomores and $5,000 for juniors and seniors
Aggregate loan limit for dependent undergraduates cannot exceed $31,000 ($23,000 maximum in subsidized loans)
Aggregate loan limit for independent undergraduate cannot exceed $57,500 ($23,000 maximum in subsidized loans)
Students pay an origination fee
Interest rate effective July 1, 2008 fixed 6.8
Interest is charged from the time the loan is disbursed until it is paid in full. If a student allows the interest to accumulate, it will be capitalized—that is, the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount
Repayment starts six months after graduation, withdrawal, or when the student’s course load drops below half time (6 credits) status
Students must complete an Exit Counseling at point of graduation, withdrawal from school, or enrollment status drops below half time (6 credits) status
Loan that must be repaid

Federal Perkins Loan:

Federally funded loan program available through the University
Eligibility determined on demonstrated financial need
Must complete FAFSA
Enrolled at least half time (6 credits)
Enrolled in a degree granting program
Available to undergraduate students
Awards range from $100 to $4,000 depending upon funding
5% fixed interest
Repayment starts nine months following graduation, a student’s withdrawal from school, or when a student drops to less than half-time (6 credits)
Principal and interest are deferred while a student is enrolled at least half-time
Students must sign a Master Promissory Note and Entrance counseling at the Financial Aid Office
An Exit Interview must be complete with the Accounts Receivables Office at point of graduation, withdrawal or enrollment drops below half time (6 credits) enrollment
Loan that must be repaid

Federal Direct Parent PLUS Loan:

Federally funded loan program available through the University
Eligibility does not require demonstrated financial need
Available to parents/stepparents of undergraduate dependent students
Student must be enrolled at least half time (6 credits)
Student must be enrolled in a degree program
Awards provide up to the cost of attendance minus financial aid per academic year
Interest rate is fixed at 7.9% beginning July 1, 2008, and repayment begins 45-60 days after the second disbursement. Refer to the Direct Loan website for current interest rates
Parent/stepparent must complete an Electronic Master Promissory Note
A FAFSA is not required to apply for the PLUS loan; however, students are encouraged to file a FAFSA so that they can receive the maximum aid available
Parents may download an application online from the Financial Aid Forms page
Loan that needs to be repaid by the parent/stepparent

Student Loans - Undergraduate