Federal Stafford Loans

UHCL is now using the Federal Direct Stafford Loan Program

All Stafford Loans are now Direct Loans, starting in the 2008-2009 academic year. This means you work with us and the U.S. Department of Education to secure your loan. It’s the simplest, most cost-effective and safest program available.

Why did we drop the old Federal Family Education Loan (FFEL) program?

Fees were rising and several lenders were dropping out. In the future, you'll receive better, lower rates and better service from this change.

No change to your old loan

If you have an existing loan in an old program, nothing changes. After you finish school or if you attend less than half time, you can ask for a Direct Consolidation Loan from our Direct Loan Program or the FFEL program to combine all FFEL and Direct Loans.

If you are at least half time at UHCL, you may qualify for a low-interest Federal Direct Loan

Federal Direct loans are available for both undergraduate and graduate students. You can use the loans to pay tuition and fees, as well as some other living expenses (such as room and board, books and transportation). You can receive Federal Direct loans as subsidized, unsubsidized, or as a combination of the two.\

Direct loans can be subsidized – interest-free while you’re in school – if you qualify

To qualify for a subsidized loan, complete the FAFSA form. If your FAFSA results demonstrate financial need, you can qualify for a subsidized loan. The government will pay the interest on your loan while you are in school and during your grace period.

Unsubsidized Direct loans are also available with low interest rates and
favorable deferment options.

Although you are charged interest on an unsubsidized loan, you have the same low interest rate, deferment, and repayment options. You can save money by paying the interest on an unsubsidized loan quarterly, rather than allowing it to add up until you enter the repayment period.

2008 - 2009 Federal Direct Loan Interest and Fees

Undergraduate Subsidized: 6.0% fixed
Graduate Subsidized: 6.8% fixed
All Unsubsidized: 6.8% fixed

When interest is due on unsubsidized loans

You pay interest on your loan from the time you receive your loan until you pay it in full. You can put off paying interest while you are in school and enrolled at least half time. However, if you put it off, it is added to the original balance of the loan. If you can, pay the interest when you receive your quarterly interest statement.

Origination fee of 2%, reduced to .5%

In addition to charging interest, all loans also charge a 2.0% origination fee. The fee comes out of the first funds you receive from your loan. However, you will receive a 1.5% fee rebate, instantly. This reduces the fee to .5% but you must make your first 12 loan payments on time or the rebate will be charged back to your loan.

Eligibility

• US citizen or permanent resident
• An undergraduate or graduate student enrolled at least half time
• Complete a FAFSA
• Maintain satisfactory academic progress
• You don't exceed annual or lifetime total loan limits
• No credit check is required

Repayment

After graduation from college, dropping below half-time, or leaving school for any other reason, you have a 6-month grace period before starting repayment. Repayment options vary and under some circumstances you may be eligible to postpone or temporarily reduce payments. The standard loan repayment is a 10-year plan; though other repayment plans such as graduated or extended repayment plans may be available.

How to apply for a Stafford Loan

UHCL will calculate your Stafford loan eligibility when we receive your FAFSA. For details.....