** 2015 - 2016 Student Loan Updates **
Loss of Subsidized Loan Eligibility for Graduate and Professional Students
Graduate and professional students are no longer eligible to receive Federal Direct Subsidized loans. This is effective for loans made for loan periods on or after July 1, 2012. The annual loan limit remains unchanged at $20,500.
Termination of Direct Loan Borrower Repayment Incentives:
The Department of Education will no longer offer repayment incentives to Direct Loan borrowers, including any reduction in the interest rate or origination fee, effective for loans disbursed on or after July 1, 2012. The law continues to allow the Department of Education to offer interest rate reductions to Direct Loan borrowers who agree to have payments automatically debited from a bank account.
Increased Student Loan Interest Rates
On July 1, 2015 the interest rate on all new federal student loans will decrease to 4.29% for Undergraduate Subsidized and Unsubsidized loans. The interest rate for Graduate Unsubsidized loans will decreased to 5.84% and the PLUS Loan interest rate for both Parents and Graduate students will decrease to 6.84%. Click here to view the interest rates on federal student loans disbursed prior to July 1, 2015. All interest rates are fixed rates for the life of the loan. Interest rates on federal student loans are set by Congress.
In addition the Direct Loan subsidy on subsidized loans will now be limited for new borrowers to an aggregate of 150% of the published length of the student’s educational program. Once the student reaches that limit, the student may borrow only unsubsidized loans and interest begins to accrue on the student’ outstanding balance. The interest rates on student loans are determined by federal law.
Also as of July 1, 2014 any NEW Direct Subsidized Loans will continue to have an interest rate subsidy while the borrower is in college in a degree seeking program at least half-time, during the six month grace period and during an approved deferment period.
NSU encourages all students and families to plan for their educational expenses to the extent possible and responsibly borrow what is needed to complete their educational studies. NSU does not provide alternative funding to replace available loans.
Federal Student Loans
Students are considered for Federal loans by completing the FAFSA. The Ford Direct Loan and Federal Perkins amounts for which a student is eligible will be included in the financial aid award package.
Direct Loan Subsidized/Unsubsidized Loan Limits
The following chart provides maximum annual and aggregate (total) loan limits for subsidized and unsubsidized Federal Direct loans.
Dependent Undergraduate Students
Independent Undergraduate Students
Graduate/Professional Degree Students
1st Year (Freshmen)
$5,500 (no more than $3,500 subsidized)
$9,500 (no more than $3,500 subsidized)
$20,500 (no more than $8,500 subsidized)
2nd Year (Sophomores)
$6,500 (no more than $4,500 subsidized)
$10,500 (no more than $4,500 subsidized)
3rd Year and beyond (Juniors & Seniors)
$7,500 (no more than $5,500 subsidized)
$12,500 (no more than $5,500 subsidized)
Maximum Total Debt
$31,000 (no more than $23,000 subsidized)
$57,500 (no more than $23,000 subsidized)
$138,500 (no more than $65,500 subsidized)
Complete Loan Entrance Counseling and Master Promissory Note ONLINE!
First-time* student loan borrowers MUST complete a Loan Entrance Counseling and/or Direct Loan Master Promissory Note (MPN).
(* students who have not previously borrowed Ford Subsidized or Unsubsidized loans)
To complete the Loan Entrance Counseling and Direct Loan MPN online, go to www.studentloans.gov .
If scholarships and grants are not sufficient to cover educational expenses, a loan may fill a student's remaining financial need. Student loans, unlike grants and scholarships, must be repaid, with interest. Students should be prudent in deciding the amount of money to borrow and carefully consider the amount they will have to repay over the years. There are various types of loans that students may consider..