Federal Direct Subsidized Loan
Binghamton University participates in the William D. Ford
Federal Loan program. Under this program, a subsidized loan is a loan in which
the federal government pays the interest on the loan while the student is enrolled
at least half-time (half-time at Binghamton for undergraduates is 6 credits)
The subsidized Federal Direct Loan is a need-based program which allows eligible
students to borrow the following amounts according to their status:
Freshmen..........................$2625.00
Sophomores......................$3500.00
Juniors & Seniors......up to $5500.00
Repayment of this type of loan begins six months after you graduate, withdraw,
or enroll less than half-time. Loans are generally repaid within a five to ten
year period. The interest rate is variable annually capped at 8.25%. Origination
fees of 1.5 % are automatically deducted for processing before the loan is disbursed.
This means that while you pay back 100% of the amount borrowed (plus interest),
the proceeds (only 98.5%), will be applied toward your tuition bill. If your
tuition bill is paid in full when the loan is disbursed, the excess funds will
be refunded to you in the form of a check or in the form of a direct
deposit by electronic funds tranmissiom (EFT). . This refund may be used
for other educational expenses that are not billed by the University such as,
books, supplies, travel, etc.
Federal Direct Unsubsidized Loan
An unsubsidized Federal Direct loan has the same terms as
the subsidized Federal Direct Loan, except the borrower is responsible for
the interest that accrues while in school during the six-month grace period.
You may have the interest added on to the principle (capitalized) and make no
payment until after you leave school or drop below half-time, or you may pay the
interest on a quarterly basis (four times a year). The unsubsidized loan is available
to students who may not qualify for a subsidized loan or who may qualify for only
a partial subsidized loan. The combined total (both subsidized and unsubsidized)
cannot exceed the federally-set limits. Interest rates are the same as for the
subsidized Federal Direct loan. Additional funding may be available through this
program for independent students and dependent students whose parents' PLUS loan
has been denied due to adverse credit history.
Parent Loans for Undergraduate Students (PLUS Loan)
Please visit the Financial Aid Office's website for more information
on these loans The Financial
Aid Office Website
Last Updated:
6/19/06
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