Federal Loans

Federal Loans

William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Loan Program (DL) provides Federal Direct Unsubsidized Stafford Loans to assist graduate students to cover the costs of educational expenses. You may qualify to borrow up to a maximum of $20,500 each year.

An unsubsidized loan is not awarded on the basis of financial need although you must file the FAFSA to be considered for unsubsidized loans. You will be responsible for interest from the time the loan is disbursed until it’s paid in full. If you allow the interest to accrue while you’re in school or during other periods of nonpayment, it will be capitalized. This means the interest will be added to the principal amount of your loan, and additional interest will be based on the higher amount.

Direct loan interest rates are determined annually based on the sale of Treasury Bills. Once established the interest rate on a loan will not change. The interest rate you pay will be determined by the disbursement date of your loan.

Disbursement Date Interest Rate
After June 30, 2015, but prior to July 1, 2016 5.84%
After June 30, 2014, but prior to July 1, 2015 6.21%
After June 30, 2013, but prior to July 1, 2014 5.41%
Prior to July 1, 2013 6.8%

The CTS Loan Process

  • A Federal Direct Loan is listed on the Financial Aid Award Notification which you receive from the Financial Aid Office.
  • You return the Loan Information Form to the Financial Aid Office.
  • The Financial Aid Office originates your loan and transmits that information to the U. S. Department of Education.
  • You complete the on-line Master Promissory Note (MPN) and submit to the Department of Education via the web. Be sure to print a copy of the MPN for your file.
  • The Department of Education sends your loan funds to the CTS Business Office.
  • The Financial Aid Office checks your enrollment status to confirm that you are still enrolled at least half-time.
  • The Business Office credits the loan funds to your account.
  • The Business Office mails any remaining funds to you.

The following links provide detailed information concerning all aspects of the William D. Ford Federal Direct Loan Program:

Direct Loan Overview
While You Are In School
When You Graduate or Leave School
Know What You Owe
Repayment Plans
Repayment Calculators
Deferments and Forbearances
Loan Consolidation and Cancellation
Public Service Loan Forgiveness
Sign a Direct Loan Promissory Note
Complete Direct Loan Entrance Counseling
Complete Direct Loan Exit Counseling
Federal Loan Servicers