Federal Direct Loans

Federal Direct Loans are available to undergraduate and graduate students enrolled at least half-time in an eligible degree or certificate program to pay for their educational costs. Starting Fall 2008, the University of Colorado Denver Downtown Campus is participating in the Federal Direct Loan Program.

Direct loans may be subsidized or unsubsidized depending on your need as determined by information on your FAFSA. The federal government will pay the interest on subsidized loans while you’re in school, for the first 6 months after you graduate or leave school, and any periods of deferment. Interest on unsubsidized loans will start accruing at the time of each disbursement.

For information on federal loan programs, please refer to The Guide to Federal Student Aid. Your Master Promissory Note will also include the terms and conditions of the loan.

Is this your first loan at UCD? You must complete the online entrance counseling at www.dl.ed.gov.

In addition, all Direct loan borrowers at the UCD Downtown Campus must complete the Master Promissory Note (your agreement to repay the loan) at www.dlenote.ed.gov. Borrowers should retain a copy of the master promissory note.

Contact the lender, Direct Loan Servicing, at 800-848-0979.

Eligibility

Must be enrolled at least half-time in an eligible undergraduate, graduate or professional degree or certificate program.
Cannot be in default on any federal student loan or owe a refund on a federal student grant
Must have a valid social security number
Must be a U.S. citizen or eligible non-citizen
Must be registered with the Selective Service, if required
Continuing students must meet satisfactory academic progress standards

Loan Features

Direct Loans can be consolidated with other federal loans
Fixed interest rate of 6.8%
Origination Fee of 2.0%

Annual Loan Limits

Undergraduates (dependent)

1st year - $5,500 (up to $3,500 can be subsidized)
2nd year - $6,500 (up to $4,500 can be subsidized)
3rd & 4th year - $7,500 (up to $5,500 can be subsidized)

Undergraduates (independent)

1st year - $9,500 (up to $3,500 can be subsidized)
2nd year - $10,500 (up to $4,500 can be subsidized)
3rd & 4th year - $12,500 (up to $5,500 can be subsidized)

Graduate & Professional Students

$20,500 (up to $8,500 can be subsidized)

NOTE: The amount of financial aid you’re awarded cannot exceed your cost of attendance. Your loan eligibility may be reduced upon receipt of other resources (i.e., scholarship, tuition waiver, etc.).

Aggregate (Lifetime) Borrowing Limits

Undergraduate (dependent)	$31,500 ¹
Undergraduate (independent)	$57,500 ¹
Graduate	$138,500 ²

¹ No more than $23,000 can be subsidized
² No more than $65,500 can be subsidized

Repayment

Payments are deferred while you’re in school. Interest will continue to accrue on the unsubsidized loan even if you are granted a deferment on the loan.
6 month grace period before repayment begins
There are no pre-payment penalties
Please contact the lender, Direct Loan Servicing, for detailed repayment information and deferment or forbearance options
More information is available on Student Aid on the Web under Repaying Your Loans.