print header

Federal Direct Ford Loan

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.  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.

You must accept the loan in Self Service before we can process the funds for you.  First time borrowers are also required to sign a master promissory note and complete a Loan Entrance Counseling on the web before loan funds may be disbursed.  The master promissory note and the Loan Entrance Counseling is available on the Federal Student Aid website at http://studentloans.gov . 

A student qualifies for a Direct Subsidized 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

Freshman status Undergraduate Student $3500
Sophomore status Undergraduate Student $4500 per year
Junior status and Above Undergraduate Student $5500 per year
The cumulative undergraduate limit is $23,000.


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  1.072  percent as of March 1, 2013 of the amount you borrow. The loan fee is subtracted from the loan money before it is applied to your account.

Frequently Asked Questions regarding the Direct Loan Program

Excellence. Our Measure. Our Motto. Our Goal.