Federal Direct Student Loan-Student Financial Aid - Carnegie Mellon University

Federal Direct Student Loan

Students will receive consideration for a Federal Direct Student Loan by completing the FAFSA. All undergraduate and graduate students planning on borrowing a subsidized, unsubsidized or PLUS Loan for the first time are required to complete a new Federal Direct Loan Master Promissory Note and Federal Direct Loan Entrance Counseling. Specific instructions for applying and reapplying are indicated in the links below.

Recent Federal Changes Affecting Direct Loans

Congress passed the Budget Control Act of 2011, which put into place automatic federal budget cuts, known as the "sequester," which became effective Oct. 1, 2013. While this law does not otherwise change the amount or terms of a student's Direct Loan, it does increase loan fees on Direct Subsidized and Direct Unsubsidized Loans first disbursed on or after Dec. 1, 2013. Please view the fees in the chart below. 

Current Direct Loan Interest Rates

Loan Type

13-14

Interest

Rate

Fees*

(first disbursed

on or after July 1, 2013 

and before Nov. 30, 2013)

Fees*

(first disbursed

on or after Dec. 1, 2013

and before Sept. 30, 2014)

Rate Cap
Subsidized Stafford (undergraduate) 3.86% 1.051% 1.072% 8.25%
Unsubsidized Stafford (undergraduate) 3.86% 1.051% 1.072% 9.5%
Unsubsidized Stafford (graduate) 5.41% 1.051% 1.072% 10.5%
PLUS (parent and graduate) 6.41% 4.204% 4.288% 10.5%


*Direct Loan Fees: The subsidized and unsubsidized Federal Direct Loans have a 1.051% or 1.072% origination fee, which will be deducted from the gross amount of the loan borrowed. The Federal Direct PLUS Loan has a 4.204% or 4.288% origination fee, which will be deducted from the gross amount of the loan borrowed.

EFFECTIVE 2012-2013: 

  • Effective for Federal Direct Student Loans made for periods of enrollment beginning on or after July 1, 2012 (i.e., 2012-2013 academic year), graduate students are no longer eligible to receive subsidized direct loans.
  • New (undergraduate) subsidized Federal Direct Student Loans made from July 1, 2012 to June 30, 2014 will not be eligible for subsidized interest benefits during the six-month grace period after a student graduates or falls below half-time enrollment. Interest will accrue during the grace period and will be capitalized if unpaid by the borrower.

Federal Direct Student Loans offer students a single application process (FAFSA). The funding comes directly from the federal government to the university.

Students who do not wish to apply for financial aid but are interested in applying for an unsubsidized Federal Direct Student Loan or whose parent(s) are only interested in borrowing a Federal Direct PLUS Loan are only required to complete a FAFSA (Free Application for Federal Student Aid). For internal processing, please complete the Request for Federal Unsubsidized or Federal Parent PLUS Loan Only form.

Direct Loan Links