Federal Direct Student Loans
Federal student loans are offered by the U.S. Department of Education to help eligible students cover the cost of higher education at an accredited institution.
To apply for a Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form. RIT will use the information from your FAFSA form to determine how much aid you are eligible to receive. Direct Loans are generally included as part of a financial aid offer.
Eligibility
- You must be enrolled in at least 6 credits (half-time) of required coursework and/or a part-time or full-time Co-op experience required for the completion of your degree.
- You must be meeting Satisfactory Academic Progress (SAP) standards. View SAP requirements for Undergraduate and Graduate students.
- You must complete a current-year FAFSA.
Options for Undergraduate Students
Subsidized Loans
- Available to eligible undergraduate students who demonstrate financial need.
- RIT will determine the loan amount based on a student’s eligibility for all types of financial aid.
- The U.S. Department of Education pays the interest while a student is in school, during the grace period, and during a deferment.
Unsubsidized Loans
- Available to undergraduate students. There is no requirement to demonstrate financial need.
- RIT will determine the loan amount based on a student’s eligibility for all types of financial aid.
- Interest will accrue from the time of disbursement and the student is responsible for paying the interest. However, payments can be deferred during the six month grace period.
Options for Graduate Students
Unsubsidized Loans
- Available to graduate students. There is no requirement to demonstrate financial need.
- RIT will determine the loan amount based on a student’s eligibility for all types of financial aid.
- Interest will accrue from the time of disbursement and the student is responsible for paying the interest. However, payments can be deferred during the six month grace period.
Graduate/professional students may also apply for Federal Graduate PLUS Loans.
Application Process
- To apply for a federal direct loan, you must first complete the FAFSA.
- To receive the loan(s), you must complete a Master Promissory Note (MPN) and Entrance Counseling.
- To receive the loan(s), you must be enrolled in at least 6 credits (half-time) of required coursework and/or a part-time or full-time Co-op experience required for the completion of your degree. We recommend you view all terms and conditions of awards and offers.
Interest Rates and Fees
The interest rates and loan origination fees are announced by the Department of Education annually.
Interest Rates
Interest is additional money that you pay to a lender as a cost of borrowing money. Interest is calculated as a percentage of the unpaid principal amount that you borrowed.
View current interest rates
View previous years’ interest rates
Origination Fees
An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. An origination fee is subtracted by the Department of Education from the borrowed amount prior to disbursement. Therefore, the amount you receive as a disbursement will be slightly lower than the amount you accept.
Loan Limits
There are limits on the amount of Federal Direct Subsidized and Unsubsidized loans that you are eligible to borrow each academic year (annual loan limits). There is also a limit on the total amount that you may borrow overall for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit.
Repayment
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin loan repayment. During this period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date.
Loan Borrowing History
You can view your federal loan history by logging into studentaid.gov. Your profile's dashboard will provide personalized information like your federal student loan balance, disbursement dates, and servicer contact information.