Loan Amounts

The Budget Control Act (BCA) of 2011 was signed into US law on August 2, 2011. This Act makes two changes to the Federal Direct Stafford Loan Program.

1. Loss of Subsidized Loan Eligibility for Graduate and Professional Students
Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.

The annual loan limit for graduate and professional students remains unchanged at $20,500 ($47,167 for certain health professions students), but this amount will now be limited to Direct Unsubsidised Loans, as shown in the following chart:

The withdrawal of the subsidised loan eligibility for graduate and professional students does not affect undergraduate student borrowers, who currently remain eligible to receive Direct Subsidised Loans.

2. Termination of Direct Loan Borrower Repayment Incentives
With one exception as noted below, the Budget Control Act terminates the authority of the Department of Education (the Department) to offer any repayment incentives to Direct Loan borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or origination fee, effective for loans first disbursed on or after July 1, 2012. As a result of this change, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012 (this includes the Direct PLUS / Grad PLUS Program).

Consolidating FFEL Program Loans into the Direct Loan Title IV Program
Students who already have FFEL Program loans and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may make loan repayment easier. To learn more about when you may consolidate, the pros and cons of doing so, and the application process, visit the Direct Consolidation Loans website or call 800/557-7392 (TDD/TTY: 800/557-7395).

Deferments
If you have previous loans which need repayment deferment, then you will need to request a deferment form from your previous loan provider. We are not able to sign any deferment forms until after you have been fully registered as a student, normally you must be studying at least half time or more to qualify for a deferment.

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