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Affording Your Education >> Federal Loans
Like many students, you may need additional financing to supplement your savings, grants, and scholarship awards. That’s why most financial aid packages include an offer of aid in the form of federal loans. Loans must be repaid, with interest, but federal loans are advantageous because they offer low interest rates and more flexible repayment plans than most private loans.
UMUC participates in the William D. Ford Federal Direct Loan program, which is available to undergraduate and graduate students. These federal loans may be subsidized (based on need) or unsubsidized (not based on need). Subsidized loans begin to accrue (accumulate) interest when repayment begins (six months after you leave school or your attendance drops below half-time), while unsubsidized loans begin to accrue interest as soon as the loan is fully disbursed. Award amounts are based on grade year classifications and vary each year.
The Federal Perkins Loan program is a low-interest, subsidized loan available to undergraduate and graduate students, whereby UMUC serves as your lender. Award amounts are based on need and availability of funds, and range up to $4,000 annually.
In addition to these federal loan programs, parents of dependent undergraduate students may take advantage of the Federal Direct PLUS Loan program, which offers non-need-based federal loans.
Graduate students can also borrow through the Federal Direct PLUS Loan program (known as the Graduate PLUS Loan program), in addition to the subsidized and unsubsidized Direct Loan programs.
For more information visit www.studentaid.ed.gov
