DO I QUALIFY FOR FEDERAL DIRECT LOAN?
Completed a FAFSA and listed our school code: 001614
You must be a Kaua'i CC major
Enrolled in at least six credits
Be making Satisfactory Academic Progress
Not in default on a prior student loan or obligated to repay a federal grant
WHAT IS A FEDERAL DIRECT LOAN?
Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.
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Subsidizied Direct Loan (SUB): Is awarded to students who demonstrate financial need. The federal government will
subsidize or pay the interest on the loan during deferment periods.
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Unsubsidized Direct Loan (UNSUB): This loan is typically awarded to students who do not demonstrate financial need,
but it may also be used to supplement a Subsidized Direct Loan. Unlike the subsidized loan, interest will begin to accrue upon receipt
of the loan check and the borrower is responsible for repaying all accrued interest.
WHAT IS THE INTEREST RATE ON THIS LOAN?
If your loan was first disbursed on:
- July 1, 2006 to June 30, 2008, the interest rate is fixed at 6.8%
- July 1, 2008 to June 30, 2009, the interest rate is fixed at 6.0%
- July 1, 2009 to June 30, 2010, the interest rate is fixed at 5.6%
- July 1, 2010 to June 30, 2011, the interest rate is fixed at 4.5%
- July 1, 2011 to June 30, 2012, the interest rate is fixed at 3.4%
- July 1, 2012, the interest rate is fixed at 6.8%
- For all Unsubsidized Direct Loans disbursed to undergraduates and graduate students, the interest rate is fixed at 6.8%.
- The interest rate on Direct Loans first disbursed on or after July 1, 1998 but before July 1, 2006 is variable and may change on July 1 of each year, but will never exceed 8.25%. The rate is based on:
~ The 91-day T-bill rate +1.70% during repayment periods
The Smart Student Guide to Financial Aid at finaid.org has some excellent loan calculators to help students
figure out how much to borrow, analyze the best repayment options, loan comparisons, interest rate calculations, and much, much more.
WHEN DO I REPAY THIS LOAN?
Repayment on a Federal Direct Loan begins six months after you leave college or drop below half-time.
HOW MUCH CAN I BORROW? more info >>
HOW DO I APPLY? more info >>
WHEN WILL I GET MY MONEY? more info >>
PROBLEMS KEEPING TRACK OF YOUR STUDENT LOAN? more info >>
ARE YOU RETURNING TO COLLEGE AND DO YOU NEED A DEFERMENT FORM? more info >>
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