Federal Direct Loans
Binghamton University participates in the William D. Ford Federal Direct Loan Program for students. Federal Direct Subsidized, and Unsubsidized loans are not processed through a bank; therefore, bank loan applications are not required. All student loans must be processed through the Direct Loan program, and no exceptions will be made.
Federal Direct Subsidized Student Loans are need-based loans. The federal government pays the interest that accrues on the loan while the student is enrolled at least half-time and during the six-month grace period.
Federal Direct Unsubsidized Student Loans are non-need based loans. All students who meet general eligibility requirements may qualify for Federal Direct Unsubsidized Loans. The student is responsible for all interest that accrues while the student is enrolled at least half-time. Interest begins to accumulate from the date of the first loan disbursement and is billed quarterly. Students may choose to pay the interest that accumulates or have it capitalized. Paying the interest as it accumulates will reduce the amount of interest that must be repaid.
2008-2009 |
|
Interest Rates for Federal Direct Loans disbursed on or after July 1, 2008: |
|
| Undergraduate Subsidized Direct Loans | 6.0% |
Undergraduate Unsubsidized Direct Loans |
6.8% |
Graduate Subsidized Direct Loans |
fixed at 6.8% |
| Graduate Unsubsidized Direct Loans | fixed at 6.8% |
| Graduate PLUS Direct Loans | 7.9% |
| Parent PLUS Direct Loans | 7.9% |
Origination Fees for Federal Direct Loans disbursed on or after July 1, 2008: |
|
| Undergraduate & Graduate Direct Loans | 2.0% fee – 1.5% rebate = 0.5% |
Graduate & Parent PLUS Direct Loans |
4.0% fee – 1.5% rebate = 2.5% |
2009-2010 |
|
| Interest Rates for Federal Direct Loans disbursed on or after July 1, 2009: | |
Undergraduate Subsidized Direct Loan |
fixed at 5.6% |
Undergraduate Unsubsidized Direct Loans |
fixed at 6.8% |
Graduate Subsidized Direct Loans |
fixed at 6.8% |
Graduate Unsubsidized Direct Loans |
fixed at 6.8% |
Graduate PLUS Direct Loans |
fixed at 7.9% |
Parent PLUS Direct Loans |
fixed at 7.9% |
| Origination Fees for Federal Direct Loans disbursed on or after July 1, 2009: | |
Undergraduate & Graduate Direct Loans |
1.5% fee – 1.0% rebate = 0.5% |
Graduate & Parent PLUS Direct Loans |
4.0% fee – 1.5% rebate = 2.5% |
Compare Federal Direct Loans with Alternative Loans >
eMPN Requirement: First-time borrowers accepting loans must complete an electronic Master Promissory Note (eMPN) as soon as possible for bill to be properly credited.
Complete your promissory note online >
Entrance Counseling Requirement: First-time borrowers accepting loans must complete online Entrance Counseling as soon as possible for bill to be properly credited.
Overview: Students must be enrolled at least half-time to be eligible for student loans. Application for student loans is done by filling out and submitting the Free Application for Federal Student Aid (FAFSA). Basic eligibility requirements must be met, as determined by the federal government. Effective for loans disbursed on or after July 1, 2009, a 1.5% origination fee is deducted from the loan before it is disbursed. However, borrowers are provided a 1.0% upfront rebate on this fee. As a result, this means that while you will pay back 100 percent of what you borrow (plus interest) you will actually receive only 99.5% percent, which can be applied toward your tuition bill. If you have paid your bill in full before the loan disbursement is processed, the loan money will be given to you as a refund and can be used for other educational expenses such as books, supplies, travel or living expenses.
Direct Loan Servicing provides online access using your PIN to information on your existing Direct Loan(s). You may access your account information, view your loan balance, change your address, download deferment, forbearance and Electronic Debit forms. Enhancements include the ability to view your payment history, change your payment due date and to select a different repayment plan using the new repayment estimator that provides payment amounts using your actual Direct Loan balances in the system.
