University of Houston: Costs & Financial Aid

William D. Ford Federal Direct Loan Program

About the Loan
Interest Rate and Fees
New Changes/Updates
Loan Amount
Application for Loans
Offer of Loans
Disbursement of Loans
Maintenance of Loans
Repayment of Loans

About the Loan

This William D. Ford Federal Direct Loan program permits eligible students to borrow loans from Federal Government, which supplies low rates of interest and useful compensation choices. The Federal Direct Loan Program embody Federal Direct Subsidized Loan, Federal Direct Unsubsidized Loan, Federal Parent PLUS Loan and Federal Graduate PLUS loans.

Interest Rate and Fees

Interest is cash paid to the lender in alternate for borrowing cash. Interest is calculated as a share of the unpaid principal quantity (loan quantity) borrowed. The rate of interest varies relying on the loan sort and (for many sorts of federal student loans) the primary disbursement date of the loan. Please click on right here to view the present rates of interest, or click on right here to view historic Federal Direct Loan rate of interest info.

Most federal student loans have loan charges which are a share of the whole loan quantity. The loan charge is deducted proportionately from every loan disbursement you obtain. This means the cash you obtain might be lower than the quantity you truly borrow. You’re accountable for repaying your entire quantity you borrowed and never simply the quantity you acquired.

Please click on right here to view the present loan charges for Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans and Federal Direct PLUS Loans.

New Changes/Updates

Subsidized Stafford Loan Interest Rate
College Cost Reduction and Access Act

Congress has handed and the President has signed the Bipartisan Student Loan Certainty Act of 2013, which ties federal student loan rates of interest to monetary markets. Under this Act, rates of interest might be decided every June for brand new loans being made for the upcoming award yr, which runs from July 1 to the next June 30. Each loan could have a hard and fast rate of interest for the lifetime of the loan.

These charges will apply to all new Federal Direct Loans made throughout indicated timeframe. Please click on right here to view the present rates of interest, or click on right here to view historic Federal Direct Loan rate of interest info.

Subsidized Stafford Loan Grace Period Interest Subsidy
Consolidated Appropriations Act, 2012

Stafford Loans (sponsored and unsubsidized) have a grace interval throughout which compensation shouldn’t be required till six months after the student graduates, withdraws or is enrolled in lower than half-time. Previously, Federal Subsidized Stafford Loans maintained the curiosity subsidy throughout the grace interval. The curiosity subsidy will not be offered throughout the grace interval for first disbursements made on or after July 1, 2012, and earlier than July 1, 2014.

New Limit on Eligibility for Subsidized Stafford Loans
Public Law 112 – 141

A brand new borrower on or after July 1, 2013, is not going to be eligible for brand new Federal Direct Subsidized Loans if the interval throughout which the borrower has acquired such loans exceeds 150 p.c of the revealed size of the borrower’s instructional program. The legislation additionally supplies {that a} borrower who has reached the 150-percent restrict is ineligible for curiosity subsidy advantages on all Federal Direct Subsidized Loans first disbursed to that borrower on or after July 1, 2013.

  • Borrowers could obtain Federal Subsidized Direct Loans for no extra than150 p.c of the size of the present educational program (i.e., six years for a four-year diploma)
  • Once a borrower has acquired Subsidized Loans for 150 p.c of the size of their program, the borrower’s future Federal Subsidized Direct Loan eligibility will finish.
  • A student who has acquired Federal Subsidized Direct Loans for 150 p.c of the size of their program and continues enrollment past that time will lose all subsidies on beforehand acquired Federal Subsidized Direct Loans. The student additionally might be required to pay all accrued curiosity.
READ:   The CARES Act and Coronavirus Student Loan Relief

Stafford and PLUS Loan Program Rebate
Budget Control Act of 2011

In Aug. 2, 2011, Congress handed the Budget Control Act of 2011, which put into place automated federal finances cuts, often called a “sequester.” While the sequester doesn’t in any other case change the quantity, phrases or situations of Federal Direct Loans, the phrases of the sequester have an effect on the loan charges charged to Federal Direct Loan debtors for Federal Direct Subsidized, Federal Direct Unsubsidized and Federal Direct PLUS loans. The quantity of the loan origination charge for a loan is set by the date of the primary disbursement of the loan. Any subsequent disbursements, even when made on or after the related Oct. 1, have the identical loan charge share that utilized to the primary disbursement of that loan. Please click on right here for extra details about loan charges.

For newest bulletins relating to the federal student assist packages, please go to the Federal Student Aid web site.

Loan Amount

For Federal Direct Subsidized and Federal Direct Unsubsidized Loans, these limits are:

Dependent Undergraduates

Annual Limit

Aggregate Limit

Total

Subsidized Maximum

Total

Subsidized Maximum

Freshmen

$5,500

$3,500

$31,000

$23,000

Sophomores

$6,500

$4,500

Juniors and Seniors

$7,500

$5,500

Independent Students

Annual Limit

Aggregate Limit

Total

Subsidized Maximum

Total

Subsidized Maximum

Freshmen

$9,500

$3,500

$57,500

$23,000

Sophomores

$10,500

$4,500

Juniors and Seniors

$12,500

$5,500

Graduate and Law Students

$20,500

$0

$138,500

$65,500

HEAL (Pharmacy/Optometry/Medical)

$33,000 Pharmacy
$40,500 Optometry
$40,500-$47,167* Medical

$0

$224,000

$65,500

 *Medical student annual loan limits dependent upon medical yr stage.

Application for Loans

Eligibility Requirements

– Federal Subsidized loans:
Applicants should,

  • be an undergraduate student;
  • be enrolled a minimum of half-time with demonstrated monetary want;
  • be enrolled in an undergraduate diploma program (certificates packages are usually not eligible for monetary assist);
  • have accomplished a FAFSA and be eligible to obtain federal monetary assist.

– Federal Unsubsidized loans:
Applicants should,

  • be undergraduate or graduate student;
  • be enrolled a minimum of half-time, no matter monetary want;
  • be enrolled in a graduate or undergraduate diploma program (certificates packages are usually not eligible for monetary assist);
  • have accomplished a FAFSA and be eligible to obtain federal monetary assist.

Offer of Loans

All students planning to obtain a Federal Direct Loan might want to full a Master Promissory Note and Entrance Counseling at StudentAid.gov.  
                                                             
To full these necessities, the next info will have to be offered: social safety quantity, date of start, Department of Education FSA ID (the identical FSA ID used for the FAFSA), driver’s license quantity (if relevant), and two private references (full title, deal with, and phone numbers). The University of Houston will electronically confirm with the Department of Education that these steps have been accomplished earlier than funds are launched. 

Once a student is notified by way of electronic mail, the student might want to settle for any loan awards by way of myUH self-service account. If the student doesn’t want loans they’re awarded, the student can scale back or decline them.

Disbursement of Loans

Disbursement will start throughout the first week of the time period if all of your courses have began. Federal Direct Loans require a minimum of half-time enrollment (6 credit hours for undergraduate/legislation/optometry/pharmacy/medical students, 5 credit hours for graduate students) to disburse. A sound Master Promissory Note (MPN) and accomplished entrance counseling can also be required for disbursement.

Once the loan has been disbursed, the funds might be utilized to the student’s account to cowl prices. If a credit stability is created, funds might be refunded in response to the student’s established refund choice. For extra info on refunds, please click on right here.

Maintenance of Loans

In order to keep up eligibility, students should be enrolled a minimum of half-time (6 hours for undergraduate/legislation/optometry/pharmacy/medical students, and 5 hours for graduate students) on the time of disbursement and meet all Satisfactory Academic Progress necessities.

Repayment of Loans

For Federal Direct and FFELP Loans, compensation begins six months after the student for whom the loan was borrowed graduates, drops out or in any other case stops being enrolled in a minimum of a half-time foundation. Loan Exit Counseling is required when these conditions happen. Please click on right here to entry the Federal Direct Loan Exit Counseling Guide, and go to StudentAid.gov to finish this requirement. We additionally encourage you to evaluate our estimated Sample Loan Repayment Schedules as you identify whether or not to borrow Federal Student Loans.

Standard Repayment Plan:

  • Eligible loans: Federal Direct Subsidized and Federal Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans and all Federal PLUS Loans.
  • Payments are a hard and fast quantity of a minimum of $50.00 per 30 days.
  • You’ll have 10 years to repay your loans.
  • You’ll pay much less curiosity in your loan over time below this plan than you’ll below different plans.

Graduated Repayment Plan:

  • Eligible loans: Federal Direct Subsidized and Federal Direct Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans and all Federal PLUS Loans.
  • Payments are decrease at first after which enhance, normally each two years.
  • You’ll have as much as 10 years to repay your loans.
  • You’ll pay extra in your loan over time than you’ll below the 10-year normal plan.

Extended Repayment Plan:

  • Eligible Loans: Federal Direct Subsidized and Federal Direct Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans and all Federal PLUS Loans.
  • To be eligible for the prolonged plan, you could have greater than $30,000 in debt.
  • Payments could also be mounted or graduated.
  • You’ll have as much as 25 years to repay your loans.
  • Your month-to-month funds might be decrease than the 10-year normal plan month-to-month funds.
  • You’ll pay extra in your loan over time than you’ll below the 10-year normal plan.

Income-based Loan Repayment Program:

  • Eligible loans: Federal Direct Subsidized and Federal Direct Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans, all Federal PLUS Loans made to the students and Consolidation Loans (Direct or FFEL) that don’t embody Direct or FFEL PLUS loans made to folks.
  • Your most month-to-month funds might be 15 p.c of discretionary earnings between your adjusted gross earnings and 150 p.c of the poverty guideline for your loved ones dimension and state of residence (different situations apply).
  • Your fee modifications as your earnings modifications.
  • You’ll have as much as 25 years to repay your loans.
  • You will need to have a partial monetary hardship.
  • Your month-to-month funds might be decrease than the 10-year normal plan month-to-month funds.
  • You’ll pay extra in your loan over time than you’ll below the 10-year normal plan.
  • If you haven’t repaid your loan in full after making the equal of 25 years of qualifying month-to-month funds, any excellent stability in your loan might be forgiven.
  • You could should pay earnings tax on any quantity that’s forgiven.

Pay As You Earn Repayment Plan:

  • Eligible loans: Federal Direct Subsidized and Federal Direct Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans, all Federal PLUS Loans made to the students and Consolidation Loans (Direct or FFEL) that don’t embody Direct or FFEL PLUS Loans made to folks.
  • Your most month-to-month funds might be 15 p.c of discretionary earnings between your adjusted gross earnings and 150 p.c of the poverty guideline for your loved ones dimension and state of residence (different situations apply).
  • Your fee modifications as your earnings modifications.
  • You’ll have as much as 20 years to repay your loans.
  • You will need to have a partial monetary hardship.
  • Your month-to-month funds might be decrease than the 10-year normal plan month-to-month funds.
  • You’ll pay extra in your loan over time than you’ll below the 10-year normal plan.
  • If you haven’t repaid your loan in full after making the equal of 20 years of qualifying month-to-month funds, any excellent stability in your loan might be forgiven.
  • You could should pay earnings tax on any quantity that’s forgiven.

Income Contingent Repayment Plan:

  • Eligible loans: Federal Direct Subsidized and Federal Direct Unsubsidized Loans, Federal Direct PLUS Loans made to the students and Federal Direct Consolidation Loans.
  • Payments are calculated every year and are based mostly in your adjusted gross earnings, household dimension and whole quantity of your Federal Direct Loans.
  • Your fee modifications as your earnings modifications.
  • You’ll have as much as 25 years to repay your loans.
  • Your month-to-month funds might be decrease than the 10-year normal plan month-to-month funds.
  • You’ll pay extra in your loan over time below this plan than you’ll below the 10-year normal plan.
  • If you don’t repay your loan after making the equal of 25 years of qualifying month-to-month funds, the unpaid portion might be forgiven.

Income-Sensitive Repayment Plan:

  • Eligible loans: Subsidized and Unsubsidized Federal Stafford Loans, FFEL PLUS Loans and FFEL Consolidation Loans.
  • Your month-to-month fee is predicated on annual earnings. Your funds change as your earnings modifications.
  • You’ll have as much as 10 years to repay your loans.
  • You’ll pay extra in your loan over time than you’ll below the 10-year normal plan.
  • Each lender’s components for figuring out the month-to-month fee quantity below this plan can fluctuate.

Public Service Loan Forgiveness Program:

  • Under this program, the quantity forgiven is the remaining excellent stability of principal and accrued curiosity on an eligible Federal Direct Loan.
  • Borrower should not be in default.
  • Borrower should make 120 month-to-month funds on the loan.
  • Payments should be made after Oct. 1, 2007.
  • Borrower should be employed full-time in a public service job throughout the identical interval by which the qualifying funds are made and on the time that the cancellation is granted.

Deferment:

A deferment is a interval throughout which compensation of the principal and curiosity of your loan is quickly delayed.

Forbearance:

If you may’t make your scheduled loan funds, however do not qualify for a deferment, your loan servicer might be able to grant you a forbearance. With forbearance, you might be able to cease making funds or scale back your month-to-month fee for as much as 12 months. Interest will proceed to accrue in your Federal Direct Subsidized and Federal Direct Unsubsidized Loans (together with all Federal PLUS Loans).

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