Subsidized and Unsubsidized

Federal Direct Loans

Direct loans are either subsidized or unsubsidized. Repayment on both loans begins six months after a student graduates, leaves school, or drops below half time enrollment. Loan funds are sent directly to the school at the beginning of each semester. There is also an origination fee associated with both loan types.

A Master Promissory Note (MPN) and Entrance Counseling must be completed at www.studentloans.gov beforethe loan(s) will disburse. Please note that effective fall 2014, the first direct loan disbursements for first-time, first-year undergraduate borrowers begin 30 days after classes begin.

A subsidized loan is need based, and is interest free while the student is enrolled at least half time. An unsubsidized loan is not need based, and will accrue 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 – that is, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount. Thesubsidized and unsubsidized rates are fixed as follows (please note that unsubsidized loan rates differ for undergraduate and graduate students):

Subsidized

First disbursement of a loan:

Interest rate on the unpaid balance

Made on or after

And made before

July 1, 2008

July 1, 2009

6.0 percent

July 1, 2009

July 1, 2010

5.6 percent

July 1, 2010

July 1, 2011

4.5 percent

July 1, 2011

July 1, 2012

3.4 percent

July 1, 2012 July 1, 2013

3.4 percent

July 1, 2013 July 1, 2014

3.86 percent

July 1, 2014 July 1, 2015 4.66 percent


Unsubsidized (Undergraduate)

First disbursement of a loan:

Interest rate on the unpaid balance
Made on or after And made before
x July 1, 2013 6.8 percent
July 1, 2013 July 1, 2014 3.86percent
July 1, 2014 July 1, 2015 4.66 percent


Unsubsidized (Graduate)

First disbursement of a loan:

Interest rate on the unpaid balance
Made on or after And made before
x July 1, 2013 6.8 percent
July 1, 2013 July 1, 2014 5.41percent
July 1, 2014 July 1, 2015 6.21 percent

Federal student loans also have annual and aggregate limits as outlined below.

Annual Loan Limits for Direct Loans

Grade Level

Dependent Undergraduate

Independent Undergraduate

Freshman

$5,500 – Only $3,500 may be subsidized

$9,500 – Only $3,500 may be subsidized

Sophomore

$6,500 – Only $4,500 may be subsidized

$10,500 – Only $4,500 may be subsidized

Junior and Senior

$7,500 – Only $5,500 may be subsidized

$12,500 – Only $5,500 may be subsidized

Maximum Aggregate Allowed

$31,000 – Only $23,000 may be subsidized

$57,500 – Only $23,000 may be subsidized

Graduate students may borrow up to $20,500 unsubsidized each academic year.

Exit Counseling

For students who are graduating, totally withdrawing, or dropping below 6 credits of enrollment from the University, you must also complete Exit Counseling if you have ever borrowed either a Stafford or Federal Direct Loan from any educational institution. (Students seeking information about repayment options, grace periods, and consequences of not repaying your student loan can visit Student Aid on the Web).

SALT

SALT Logo

CSU-Pueblo has teamed with American Student Assistance to bring the SALT program to campus. SALT is free for our students and alumni and provides financial literacy modules, scholarship searches, internship and job searches, and discounts from partner companies. Once registered with SALT, you can also import your actual loan information from the National Student Loan Data System (see below) and review what your payments would be with the various repayment plans available. You can also estimate what your payment would be if you were to add additional loans, in case you are considering borrowing again. Finally, you have access to expert loan counselors if you have ever have questions about your student loans or repayment options (again, all for free!).

Sign up now at www.saltmoney.org/csupueblo.

National Student Loan Data System

Students can view their federal loan history at any time 24/7 through the National Student Loan Data System. You will need your PIN (the same used to sign your FAFSA and Master Promissory Note) to log into the system. For questions regarding NSLDS, please contact the Federal Student Aid Center at 1-800-4FED-AID.

Other Resources