UNDERGRADUATE CATALOG - UMUC Europe

FinAnCiAl Aid
the William d. Ford Federal direct
subsidized loan Program
This subsidized loan program allows eligible students to
borrow directly from the Department of Education. Interest
does not begin to accrue on this loan until the repayment
period begins. Freshmen may borrow up to $3,500;
sophomores, $4,500; and juniors and seniors up to $5,500 per
academic year. Aggregate loan limits may also apply. Transfer
students must have an official evaluation before sophomore-,
junior-, or senior-year grade levels can be confirmed.
Students seeking a Direct Loan must complete the Free
Application for Federal Student Aid (FAFSA), and take all steps
necessary to apply for financial aid through UMUC Europe.
First-time borrowers must also complete entrance loan
counseling.
Following federal guidelines, the Financial Aid Office
determines eligibility for a Direct Loan. Students will be
awarded maximum eligibility based upon grade level, loan
period, and need. Students can accept all or part of their
awards.
Students select their own loan period within the 2009-2010
academic year and must successfully complete a minimum
of half-time enrollment each term during the loan period.
Students must be continuously enrolled at least half time
during the designated loan period or the loan will be
cancelled, either in part or in full. Loan period(s) can be for
one term only or a combination of terms, e.g. Fall only or
Fall/Spring or Summer only. Enrollment in both on-site and
DE classes can be combined for the purpose of the half-time
enrollment necessary for a student loan within a term. For
financial aid purposes, 6 credits in a term is considered halftime
enrollment and 12 or more credits is full-time.
The annual interest accrued is assumed by the federal
government while the student is enrolled at least half time
and until the repayment period begins. The interest rate for a
subsidized loan, first disbursement made on or after
July 1, 2009, is 5.6%. There is a 2.0 percent origination fee
that is subject to reduction by the Department of Education.
Deadlines for a student loan require that it be initiated with
the federal processor, via the Financial Aid Office, no later
than the last day of the eligible enrollment period.
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UndERGRAdUATE CATALoG | 2009-2010
the William d. Ford Federal direct
unsubsidized loan Program
This student loan program has the same terms, conditions,
and deadlines, as the subsidized Direct Loan except the
interest rate is fixed at 6.8% and the student borrower assumes
responsibility for payment of the accrued interest while in
school and during the loan period. The unsubsidized program
is available to students who do not qualify, or qualify only in
part, for the subsidized loan. It is also aimed at students whose
financial need exceeds the subsidized loan limits. Dependent
students supported by their parents are eligible for amounts
equal to the subsidized Direct Loan limits plus $2,000 per
academic year. Independent students are eligible for amounts
equal to the subsidized Direct Loan limits plus $6,000 per
academic year as freshmen and sophomores and $7,000 per
academic year as juniors and seniors.