Federal Subsidized Loan

Ford Federal Direct Subsidized Loan

The Ford Federal Direct Subsidized Loan is a need-based program, subsidized by federal funds that allows students to borrow money interest-free while in school at least half- time. Students must have a completed Free Application for Federal Student Aid (FAFSA) on file at UMM to be eligible.

The interest rate is a fixed rate of 5.6%.
A 1.5% origination fee is deducted from each disbursement. A 1.0% rebate is currently added back to the disbursement.
Repayment begins six months after a student graduates, withdraws, or enrollment drops below half-time status. Full details are provided on the promissory note.

The amount students can borrow each year for Subsidized and Unsubsidized Direct Loans depends on their grade level and on whether they are dependent students or independent students.

Effective date: July 1st, 2009

Grade Level	Dependent	Independent
1st Year (less than 30 credits)	$5,500	$9,500	no more than $3,500 may be subsidized
2nd Year (30-59 credits)	$6,500	$10,500	no more than $5,500 may be subsidized
3rd-5th Year (60 or more credits)	$7,500	$12,500	no more than $7,500 may be subsidized
Aggregate Maximum	$31,000	$57,500	$23,000

The amount a student can borrow is also limited by the student's school costs, other financial aid the student may receive, and (in the case of subsidized loans) the student's expected family contribution.

The aggregate (total) limits for all subsidized and unsubsidized Direct loans:

$31,000 for a dependent undergraduate student
$57,500 for an independent undergraduate student
no more than $23,000 may be subsidized

Required Documents:
Direct Loan Master Promissory Note (MPN)
Direct Loan Entrance Counseling