THE WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM FOR UNDERGRADUATE STUDENTS
UMass Boston participates in the William D. Ford Federal Direct Loan Program. Commonly known as Direct Lending, our participation in this program allows you to borrow directly from the U.S. Department of Education. Through this program both Federal Subsidized and/or Unsubsidized loans may be borrowed, and you no longer need to apply for these loans through banks or other financial institutions. Instead you are able to borrow directly from (and ultimately repay the loan to) the U.S. Department of Education. UMass Boston acts as the intermediary for these loans while you are in school which streamlines the lending process and results in simplified and faster application and disbursement processes. Since you borrow directly from the U.S. Department of Education your loans will never be sold and there are numerous options for repayment, deferment and/or consolidation offered by the Federal Direct Loan Servicing Center. Additionally, Direct Loan borrowers may take advantage of an origination fee rebate which is given at the time of the loan's disbursement. Since the fee is reduced, more of your loan(s) will credit to your student account.
Complete Your Federal Direct Loan Master Promissory Note and Entrance Counseling Online
If you have never borrowed through the Direct Loan Program, and want to borrow a Federal Direct Subsidized/Unsubsidized Loan for the 2007/2008 academic year must complete a Federal Direct Loan Master Promissory Note (MPN) online. In order to do this, you will need to use the Federal Personal Identification Number (PIN) issued to you upon completing your FAFSA. If you have forgotten or misplaced your PIN, or need to apply for one, please go to www.pin.ed.gov to request one. Please allow approximately 10 business days to receive your PIN.
Complete your Federal Direct Loan Master Promissory Note here.
Additionally, first time Federal Direct Loan borrowers must complete a Federal Direct Loan Entrance Counseling Session online prior to the disbursement of their Federal Direct Loan(s).
Complete your Federal Direct Loan Entrance Counseling Session here.
The Interest Rate and Subsidized vs. Unsubsidized Federal Direct Loans
Interest Rate
Effective July 1, 2006, the interest rate on Federal Direct Loans will be fixed at 6.8%. Additional interest rate information can be found at the Federal Direct Loan web site.
Federal Direct Subsidized Loan
The Federal Direct Subsidized Loan is based on financial need. The Federal Government pays the interest on the subsidized portion of your loan while you are enrolled for a minimum of six credits or credit equivalencies. You must begin repayment of your loan six months after you graduate, withdraw or enroll at less than half-time status. Balance and repayment information can be found at the Federal Direct Loan web site.
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is not based on financial need. The Federal Government does not pay the interest on the unsubsidized portion of your loan. You may choose to pay the interest while you are in school, or allow it to accrue (accumulate) until you reach repayment. All unpaid interest will be added (capitalized) to the principal amount of your debt when you enter repayment. Balance and repayment information can be found at the Federal Direct Loan web site.
Tips for Borrowing Direct Loans
- When accepting a Federal Direct Loan please remember to accept only the amount you will need for the entire academic year. Federal Direct Loans are disbursed in two equal payments: one-half in the fall semester and the other half in the spring semester.
- Fees for loan origination will be deducted from each disbursement of your loan before the funds arrive at UMass Boston. Effective July 1, 2007, these fees are 2.5% of the total amount you borrow. There is a 1.5% loan fee rebate upon disbursement, which you may retain if you successfully make your first 12 payments on time during repayment.
How to Qualify
- File a Free Application for Federal Student Aid (FAFSA) for the academic year for which you wish to receive aid.
- Meet the general requirements for student financial aid.
- Have a complete financial aid file.
- Be enrolled at least half-time in a degree or eligible certificate program (6 credits or credit equivalencies).
- Maintain an enrollment status of half-time or greater. If you withdraw or drop below half-time (6 credits) during the fall semester, the spring disbursement of your loan will be automatically cancelled. If you readmit in the spring at least half time your loan may be reinstated based on the spring semester's cost.
Federal Direct Loan Amounts, Maximums and Repayment Plans
Federal Direct Loan amounts are dictated by the following factors:
- Whether you are an Undergraduate or Graduate student,
- Your year in school as determined by UMass Boston,
- Your level of need,
- Your Cost of Attendance,
- Your dependency status,
- Your aggregate borrowing history, and
- In some cases, the outcome of a parent PLUS loan credit decision.
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Loan repayment is based on a fixed interest rate of 6.8%. Repayment depends on total indebtedness and length of repayment. Students pay a minimum of $50.00 per month. Federal Direct Loan repayment begins six months after you (1) graduate, (2) enroll for fewer than six credits or (3) withdraw. Additional information regarding repayment plan options can be found at the Federal Direct Loan web site.