Federal Educational Loans (William D. Ford Federal Direct Loan Program)
The U.S. Government is the exclusive lender of record, for all federally funded student loans, effective July 1, 2010; as such these loans are fully funded by the U.S. Department of Treasury. Direct loans are low cost educational loans made available to eligible students directly from the Department of Education. The Federal Direct Stafford Loan and the Federal Direct Grad PLUS Loan offer a number of repayment options, plus opportunities for deferment, forbearance, loan forgiveness, and cancellation (for death or total and permanent disability). Upon repayment, the loans can be consolidated with prior and future federal loans and neither loan charges a penalty for early payment. For further information on loan repayment options and loan repayment calculators go to: studentloans.gov
There are two types of Direct Loans: Unsubsidized Stafford and Grad Plus. Through the Direct Unsubsidized Stafford Loan, eligible law students may borrow up to $20,500 per academic year and up to $138,500 for all post-secondary education. The interest rate for loans first disbursed between July 1, 2018 and June 30, 2019 is 6.60% and the Unsubsidized Stafford Loans carry a 1.062% origination fee which is deducted upfront from the loan proceeds. The maximum annual Grad Plus Loan is the educational cost of attendance, as determined by the school, minus any other financial aid received. Grad Plus Loans have no aggregate limit. The interest rate for loans first disbursed between July 1, 2018 and June 30, 2019 is 7.60% and has a 4.248% origination fee which is deducted upfront from the loan proceeds.
|Loan type||Fee(s)*||Interest||Amount Per
|1.062%||6.60% fixed||Up to $20,500|
|Federal Direct Grad
|4.248%||7.60% fixed||Up to the balance of the
cost of attendance
Federal Unsubsidized loans are guaranteed while federal Grad Plus Loans are credit-based; however, the credit score is not used in determining eligibility. Borrowers must demonstrate that they do not have an adverse credit history. Adverse credit history is defined to mean that as of the date of the credit report, in addition to other conditions (e.g. bankruptcy, foreclosure, tax lien, or a default determination). The applicant must have one or more debts that are 90 days delinquent or that are in collection or have been charged off during the prior two years and a total combined outstanding balance of those debts greater than $2,085. Students denied a Grad Plus loan will receive notice from the Department of Education but may appeal the decision and ultimately secure the loan on either their own credit strength, after demonstrating satisfaction of debt or “good faith” payments or opt to apply with an endorser or “co-signer”.