Loan Program Facts

Program Facts	Direct Subsidized	Direct Unsubsidized	PLUS
Who can borrow?	Dependent and independent undergraduate, graduate and professional students.	Dependent and independent undergraduate, graduate and professional students.	Credit-eligible parents of dependent undergraduate students.
Eligibility	Students attending school on at least a half-time basis. Students must demonstrate need by filing a Free Application for Federal Student Aid (FAFSA).	Students attending school on at least a half-time basis. Students do not need to demonstrate need; however, all students must first be considered for a subsidized loan.	Dependent students attending school on at least a half-time basis. Completion of the FAFSA.
Loan Limits? (based on annual limits)	Year / Amount 1 / $3,500 2 / $4,500 3+4 / $5,500 Grad-Prof / $8,500	Year / Dependent / Independent 1 / $5,500 / $9,500 2 / $6,500 / $10,500 3 +4/ $7,500 / $12,500 Grad-Prof / $8,500 / $20,500 (The amounts in this group will be reduced by any amounts received under the subsidized Direct program)	A parent may borrow up to the cost of education, less financial aid received.
How do I calculate the amount I borrow?	Cost of Education – Est. Financial Aid – Est. Family Contribution = Subsidized Direct Loan	Cost of Education – Est. Financial Aid (including subsidized Direct) = Unsubsidized Stafford Loan	Cost of Education - Est. Financial Aid = Federal PLUS Loan
How is the interest paid while in school?	Interest is paid by the Federal Government while the eligible student remains in school at least half-time.	Interest is the student's responsibility while in school, from the first disbursement date to the start of repayment.	Interest is paid as part of the monthly repayment schedule.
What is the interest rate?	Fixed 3.4% (after 7/1/11)	Fixed 6.8%	DL 7.9%
When does repayment begin?	Six months after the student leaves school or drops below half-time status, whichever comes first.	Six months after the student leaves school or drops below half-time status, whichever comes first.	Within 60 days after the final loan disbursement.
Are there any fees?	Up to 2.5% of the total loan deducted proportionately from each disbursement.	Up to 2.5% of the total loan, deducted proportionately from each disbursement.	Up to 4% of the total loan, deducted proportionately from each disbursement.

For more detailed information, see the CMC Financial Aid Guide Flip Book or CMC Financial Aid Guide PDF.

Caution: Some information may change as the US Department of Education continues to issue new regulations in 2011-2012. Stay in contact with the Office of Financial Aid.