Students may borrow up to $18,500 per year in federally sponsored student loans. The loan amount borrowed cannot exceed the student's calculated need level or financial aid cost of attendance (tuition + living expenses).
Subsidized loans are available to students who demonstrate financial need based on the information provided on the FAFSA. The government pays the interest while the student is enrolled at least half-time in school.
Unsubsidized loans are non need-based loans. The current interest rate is 6.8%, and interest accrues while the student is attending school.
Flexible Direct Loan Repayment Options
Repayment begins six months after the student is enrolled less than half-time. There are several repayment options to choose from and loans may be paid off at any time (early) without penalty.
Students participating in loan forgiveness programs may contact their student loan servicer to find out if they are eligible to request a forbearance to postpone payments.
There are a variety of repayment options to assist students in finding affordable payments. Students should contact their loan servicer for more detailed information on the following options:
Standard repayment
This is the least expensive option in terms of total interest costs. The payments are fixed over a period of up to 10 years.
Graduated repayment
The monthly payments of this plan start low and increase over time. Total interest paid over the life of the loan is higher than in the standard repayment option.
Income-sensitive repayment
This option allows payments to be adjusted up or down annually to account for changes in income.
Consolidation
This plan allows students to group all of their Direct Loans together into one loan with one payment at a fixed interest rate. Depending on the total loan balance, the repayment period may also be extended to allow for lower monthly payments.
Estimated Repayment for Direct Student Loans
The following chart shows estimated monthly payment amounts on a standard repayment schedule.
|
Current: 6.8% Interest |
Maximum: 8.25% Interest |
| Loan Balance |
Payment |
# of months |
Payment |
# of months |
| $5,000 |
$54.54 |
120 |
$61.33 |
120 |
| $10,000 |
$115.08 |
120 |
$122.65 |
120 |
| $15,000 |
$172.62 |
120 |
$183.98 |
120 |
| $18,500 |
$212.90 |
120 |
$226.91 |
120 |
For more information about student loans, check our Student Financial Services graduate student loan information page or visit http://www.nelnet.net/.
