Federal Student Aid: Learn more about Direct Loan options
Rising college costs make borrowing money a fact of life for most college students. More than 65 percent of students attending four-year colleges take out loans.
At Illinois State, the average student:
Once you decide to borrow money for college, you must choose the type of loan you want: a federal student or parent loan or an alternative loan. As you determine how much you'll borrow, do your future self a favor and plan for repayment now.
The Budget Control Act of 2011 was signed into law on August 2, 2011. This Act makes two changes to the Direct Loan. Effective July 1, 2012, graduate and professional students will no longer receive the Federal Direct Subsidized Loan. As a result, graduate and professional students will be awarded Federal Direct Unsubsidized Loan. The annual limit, however, does not change.
Interest rates for loans after July 1, 2014 will have the following FIXED interest rate:
Undergraduate Subsidized and Unsubsidized: 4.66 percent
Unsubsidized Graduate: 6.21 percent
Parent PLUS and Graduate PLUS: 7.21 percent
Congress passed the Bipartisan Student Loan Certainty Act 7/24/2013 that requires that for each academic year, all newly-issued student loans be set to the U.S. Treasury 10-year borrowing rate plus add-ons to offset costs associated with defaults, collections, deferments, forgiveness, and delinquency.
Most federal student loans have loan fees that are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received. There are no loan fees for Perkins Loans.