Graduate and Professional Federal Direct Loans
The Budget Control Act of 2011 was signed into law August 2, 2011 and impacted Federal Direct Student Loans by:
- eliminating the interest subsidy for all graduate and professional students for periods of enrollment beginning on or after July 1, 2012 and
- eliminating the interest rebate for loans disbursed on or after July 1, 2012.
Important information to be aware of:
- The Federal Direct Stafford (Subsidized) Loan has been eliminated for graduate and professional students.
- The annual borrowing maximum for the Federal Direct Unsubsidized Stafford Loan remains at $20,500.
- The U.S. Department of Education will continue to pay the in-school interest on any Federal Direct Stafford (Subsidized) Loan that a graduate or professional student borrowed prior to or during the 2011-2012 school year.
- All Federal Direct Loans are assessed a loan fee by the federal government.