Student Loans
William D. Ford Federal Direct Subsidized Loan Program
William D. Ford Federal Direct Loans (Direct Loans) are made directly to you by the United States government through the U.S. Department of Education. This program takes the place of student loans obtained from a private lender, such as a bank, yet most of the terms are the same. Direct loans are made to students who are admitted as degree seeking students attending school at least half time. The U.S. Department of Education is the lender; it delivers the loan money to you through the school.
A student qualifies for a Direct Loan based on financial need, as determined under federal regulations. Although the UWEC Financial Aid Office determines the amount you may borrow based on the results of your financial aid application, there are limits as to the annual amount you may borrow depending on your grade level as shown below:
Maximum Annual Loan Limits
First-Year Undergraduate Student $3500
Second-Year Undergraduate Student $4500 per year
Third-Year and Above Undergraduate Student $5500 per year
The cumulative undergraduate limit is $23,000.
Graduate Student $8500 per year
The cumulative undergraduate and graduate limit is $138,500.
The Department of Education's Direct Loan Web Site provides an Interactive Budgeting Worksheet and Calculator that allows you to estimate your financial needs and create a budget for school and living expenses.
The interest rate on Direct Loans is fixed. The federal government does not charge you interest while you're enrolled in school at least half time, during the six-month grace period, or during deferments. You begin repaying your loan six months after you graduate, leave school, or drop below half-time enrollment status. The actual length of the repayment period and monthly payment depends on the amount of the loan you owe, the interest rate, and the loan repayment option selected.
Although there is no interest on the Direct Loan while you are in school or during the six month grace period, there is a loan fee charged which is 1/2 percent of the amount you borrow. The loan fee is subtracted from the loan money before it is applied to your account.
