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    Federal Direct Loans for undergraduate students
    After institutional funding, Federal Direct Loans are the most common source of educational funding for undergraduate students.  There are two types: subsidized and unsubsidized. 

    Subsidized loans are need based and do not accrue interest while the student is enrolled at least 1/2 time, during a six-month grace period or periods of deferment.  Unsubsidized loans are not need based and begin to accrue interest at the time of disbursement. 

    Direct Loans carry the following yearly limits:

    Undergraduate Dependent Students receive......

    $3500 Subsidized and $2000 Unsubsidized for the 1st year
    $4500 Subsidized and $2000 Unsubsidized for the 2nd year
    $5500 Subsidized and $2000 Unsubsidized for the 3rd & 4th years

    The lifetime aggregate limit is $31,000

    Undergraduate Independent Students receive......

    $3500 Subsidized and $6000 Unsubsidized for the 1st year
    $4500 Subsidized and $6000 Unsubsidized for the 2nd year
    $5500 Subsidized and $6000 Unsubsidized for the 3rd & 4th years

    The lifetime aggregate limit is $57,500

    Federal Direct PLUS Loans for parents of dependent students 
    If your financial aid does not cover all of your costs, a parent can apply for a Federal Direct PLUS Loan at www.studentloans.gov and completing the application and Master Prom Note. The interest rate is fixed at 6.84% for loans disbursed July 1, 2015 through June 30, 2016. A 4.292% origination fee is charged for loans first disbursed prior to October 1, 2015.  If a parent is denied the PLUS, the dependent student becomes eligible for an additional Direct Loan of up to $4,000 in unsubsidized funds for the first and second years and up to $5,000 thereafter.  A parent must apply and be denied each year.

    Alternative Loans
    Additional private loans, generally referred to as “alternative loans,” are also available to students to bridge any funding gaps. Most students will need a co-borrower. Payment can usually be deferred until after graduation, but interest accrues from the time the loan is disbursed. Additional information on this type of loan is available through the Financial Aid Office.

    The list of lenders is available online through www.ELMSelect.com. This summary information is intended only as a guide for comparison purposes. Many other options exist for supplemental borrowing.  You are NOT required to use any of the loans or lenders listed on this guide. Please consider the lender and loan product that best meets your needs. More information and a list of private lenders can also be found at www.finaid.org. A list of Pennsylvania Credit unions who offer private loans can be found at www.pastudentchoice.org along with their requirements. Please refer to the lender for updated information before making your choice. Rates, Terms and Conditions are subject to change without notice.