News – Changes to Graduate Student Loans

News – Changes to Graduate Student Loans

SUMMARY OF CHANGES

Beginning July 1, 2012 the following changes will be made to the William D. Ford Direct Loan Program in accordance to the Budget Control Act of 2011:

  • Effective for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students will no longer have the option to borrow Federal Direct Subsidized Stafford Loans. Graduate Students will only be able to borrow Federal Direct Unsubsidized Stafford Loans.
  • Direct Subsidized loans received for loan periods prior to July 1, 2012 will NOT be affected by this change.
  • Borrowers receiving Federal Direct Loans for preparatory course work for admission into a graduate or professional program or for course work required for teacher certification or recertification will NOT be affected by this change.
  • Annual and aggregate limits will remain the same for Federal Direct Loans. The maximum amount a graduate or professional student can borrow in a Federal Direct Loan will remain at $20,500 per academic year and at $138,500 for the aggregate total (with no more than $65,500 having been borrowed in subsidized loans).

SHOULD YOU PAY INTEREST WHILE YOU ARE STILL IN SCHOOL?

For information on how accrued interest affects the amount your owe on your loan please download this PDF.


For More Information

The Budget Control Act of 2011

www.umaine.edu/stuaid/loans/changes-to-federal-direct-loans

Personal Student Federal Loan History

www.nslds.ed.gov

Federal Direct Loans

www.direct.ed.gov

Office of Student Financial Aid

5781 Wingate Hall
Orono, ME 04469-5781
Tel: 207/581-1324
Email: umfinaid@maine.edu
Website: www.umaine.edu/stuaid

This information is also available as a PDF.