Loans for Graduate/Professional Students
Student loan programs offer long-term, low-interest educational loans which require repayment. Students should carefully consider the amount of debt they incur and recognize their future financial obligations. Like any other debt, a student loan is a serious financial obligation.
Federal Perkins Loan
The Federal Perkins Loan program gives priority to students with exceptional need. For new borrowers on or after July 1, 1987, repayment and interest accrual begins nine months after the student graduates, leaves school, or drops below half-time. The current interest rate is five percent. These funds are awarded on a first-come basis to qualified applicants who have a completed financial aid file.
Federal Direct Stafford Loans
Due to recent changes in federal legislation, the University of Nebraska-Lincoln is no longer able to offer School-as-Lender Stafford Loans. The Federal Direct Stafford Loan program enables students to borrow money directly from the federal government. UNL has a long, successful history with the Direct Loan program and we remain confident in the program's ability to provide the highest level of service.
Subsidized and unsubsidized Stafford loans for graduate/professional students will have a fixed interest rate of 6.8% for loans with a first disbursement on or after July 1, 2006. For more information on Federal Direct Stafford Loan interest rates, click here. Graduate and professional students may borrow up to $8,500 per year from the Federal Direct Subsidized Stafford Loan program and $12,000 per year from the Federal Direct Unsubsidized Stafford Loan program. The total amount that graduate or professional students can borrow in subsidized Stafford is $65,500. The total combined (subsidized and unsubsidized) that graduate or professional students can borrow is $138,500. These maximum amounts include Federal Stafford Loans and Federally Insured Student Loans borrowed at the undergraduate level.
Federal Direct Subsidized Stafford Loan
Federal Direct Subsidized Stafford Loans are offered to students who have remaining
need after other aid has been awarded. Students borrow these funds from the federal government. Subsidized Stafford loans for graduate and professional students will have an interest
rate of 6.8% for loans with a first disbursement on or after July
1, 2006. For more information on Federal Direct Stafford Loan interest rates, click here. There is a loan fee of 2% of the principal amount of each loan a student receives, however students will receive a repayment incentive of an up-front interest rebate equal to 1.5% of the principal amount of each loan received. A borrower retains the 1.5% repayment incentive by making the first twelve monthly payments on time. Graduate and professional students may borrow up to $8,500 per year from the Federal Direct Subsidized Stafford Loan program.
The total maximum amount outstanding for graduate or law students is $65,500, including Federal Stafford Loans
and Federally Insured Student Loans borrowed at the undergraduate level. These loans must be
repaid. Payments of principal and interest begin six months after you graduate, leave
school, or drop below half-time status. Federal Direct Subsidized Stafford Loan
eligibility will be indicated on your Financial Aid Notification.
Once you have responded to your award notification accepting the Federal Direct Stafford Loan, the information will be transmitted to the Direct Loan Origination Center. In addition, first-time Federal Direct Stafford Loan borrowers at the University will need to complete a Master Promissory Note (MPN). The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years)- thus you need sign only one MPN. The electronic version of the MPN allows you to complete, sign and obtain a copy of your MPN over the web using your U.S. Department of Education issued PIN. (While signing the MPN on-line is encouraged, a paper MPN is also available.) Continuing students who previously signed a Master Promissory Note for a Federal Direct Stafford Loan at the University will not be required to sign another promissory note. Once the Master Promissory Note is completed (for first-time borrowers) and the origination acknowledgment is received from the Direct Loan Origination Center, the funds are then disbursed to your consolidated billing account and, if eligible, a refund check is processed within ten business days. Allow four to six weeks for the initial phase of this process. If you are a first-time Federal Direct Stafford Loan borrower at the University, you may be required to complete Entrance Loan Counseling before your loan can be disbursed to your consolidated billing account. To satisfy this requirement, you must visit the Direct Loan website and complete the Entrance Counseling Tutorial and Quiz.
Federal Direct Unsubsidized Stafford Loan
This is a federal loan program with terms and conditions (e.g., loan limits, origination/insurance fees and deferments) the same as the Federal Direct Subsidized Stafford Loan, with a few exceptions. One exception is that students are responsible for the interest during in-school and deferment periods. Interest accruing during these periods may be paid or capitalized as agreed to by the borrower and the lender. Unsubsidized Stafford loans for graduate and professional students will have a fixed interest rate of 6.8% for loans with a first disbursement date on or after July 1, 2006. For more information on Federal Direct Stafford Loan interest rates, click here. Graduate and professional students may borrow up to a maximum of $12,000 per year from this loan program. The total combined amount (subsidized and unsubsidized) graduate and professional students can borrow is $138,500, including Federal Stafford Loans and Federally Insured Student Loans borrowed at the undergraduate level. Federal Direct Unsubsidized Stafford Loans, combined with other aid, cannot exceed the cost of attendance at the University.
Federal Direct Grad PLUS Loan
This federal loan program allows graduate and professional students to borrow up to their full cost of attendance, less other financial aid received. The repayment period begins on the date of the final disbursement of the loan, and the first payment is due within 60 days after the date the loan is fully disbursed. While you are enrolled in school on at least a half-time basis, you are eligible for an in-school deferment that allows you to postpone payments until you graduate or drop below half-time status. In most cases, an in-school deferment will automatically be granted based on enrollment data reported to the U.S. Department of Education. The first payment on a Grad PLUS Loan will be due within 45 days after the deferment end date. Note: Students who receive an in-school deferment will be notified of the deferment and of their option to cancel the deferment and begin making loan payments. Interest is charged beginning the date the money is applied to a student's consolidated billing account. Interest is charged only on the portion of the loan that has been received. The interest rate on a Federal Direct Grad PLUS loan first disbursed on or after July 1, 2006, is a fixed interest rate of 7.9%. For more information on Federal Direct Stafford Loan interest rates, click here. There is a loan fee of 4% of the principal amount of each loan a student receives, however students will receive a repayment incentive of an up-front interest rebate equal to 1.5% of the principal amount of each loan received. A borrower retains the 1.5% repayment incentive by making the first twelve monthly payments on time.
A Federal Direct Grad PLUS Loan borrower must not have an adverse credit history. To determine whether a student has an adverse credit history, his/her information will be submitted to the Direct Loan Origination Center for a credit decision. An applicant who is determined to have an adverse credit history may receive a Federal Direct Grad PLUS Loan if he or she obtains an endorser who does not have an adverse credit history.
If a student has previously signed a Master Promissory Note (MPN) for a Grad PLUS Loan for the 2006-07 or 2007-08 academic years, a new promissory note for the 2008-09 academic year is not required as the MPN signed previously is still valid and in effect. First-time Grad PLUS borrowers will need to complete an MPN. Please click here to complete this requirement (click on the link that says "Complete New MPN for Student Loans", and then select Graduate PLUS for MPN Type Selection). Our office will be notified once this process is complete. This notification must be received before we can disburse Grad PLUS Loan funds to your consolidated billing account.
