University of Vermont

Student Financial Services

William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Loan Program offers Direct Loans to eligible students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education, though you may deal with a different entity as your loan servicer.

Types of Direct Loans are Subsidized Stafford Loans, Unsubsidized Stafford Loans, Parent PLUS Loans, and Graduate PLUS Loans.

Learn More

What is the difference between Subsidized and Unsubsidized Loans?
What are the rates, fees, and terms of Direct Stafford and PLUS Loans?
How do I apply for a Federal Direct Loan?
What do I need to do when I graduate or leave school?

What is the difference between Subsidized and Unsubsidized Loans?

For Direct Subsidized Loans, the borrower is not typically charged interest while enrolled at least half-time. The interest subsidy may be limited for students who fail to complete their program within 150% of its published length. Interest is also not charged during the grace period on loans first disbursed before 7/1/2012. For Direct Unsubsidized Loans, interest accrues from the time the loan is first paid out. The interest can be paid while the student is in school and during grace, deferment, or forbearance periods. If not paid, the interest will be capitalized (added to the principal amount of the loan). If possible, it is always a good idea to pay interest on an Unsubsidized Loan while the student is in school and during any grace, deferment and/or forbearance periods.

What are the rates, fees, and terms of Direct Stafford and PLUS Loans?

Loan Type Student Grade Level 2014-2015 Fixed Interest Rate Origination Fee
(First Disbursed Before 10/1/14)
Origination Fee
(First Disbursed After 10/1/14)
Direct Subsidized Loans Undergraduate Students 4.66% 1.072% 1.073%
Direct Unsubsidized Loans Undergraduate Students 4.66% 1.072% 1.073%
Direct Unsubsidized Loans Graduate/Professional Students 6.21% 1.072% 1.073%
Direct PLUS Loans Parents of Dependent Undergraduate Students and Graduate/Professional Students 7.21% 4.288% 4.292%

*An origination fee is deducted from your loan disbursement. The origination fee for loans first disbursed before October 1, 2014 is 1.072% on Direct Loans and 4.288% on PLUS loans. Thus the amount of your loan that will disburse to your student account at UVM is 98.928% of the amount accepted for the Direct Loan and 95.712% of the amount accepted for the PLUS Loan. The origination fee for loans first disbursed on or after October 1, 2014 is 1.073% on Direct Loans and 4.292% on PLUS Loans. Thus the amount of your loan that will disburse to your student account at UVM is 98.927% of the amount accepted for the Direct Loans and 95.708% of the amount accepted for the PLUS Loan.

How do I apply for a Federal Direct Loan?

STEP ONE: Apply for financial aid with the University by submitting the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov and providing any additional information requested by the University.

STEP TWO: Accept your UVM financial aid award online in your myUVM portal, once this option becomes available (around early June). Notification will be emailed on the accept/decline options are available.

STEP THREE: Complete a Master Promissory Note for your Federal Direct Stafford, PLUS, and/or Graduate PLUS Loan online at www.studentloans.gov. Students sign in to complete the Stafford and Graduate PLUS Loan Master Promissory Notes; parents sign in to complete the Parent PLUS Loan Master Promissory Note.

STEP FOUR - FOR NEW STUDENT BORROWERS: If you are borrowing your FIRST Stafford or FIRST Graduate PLUS Loan for attendance at UVM, complete loan entrance counseling online at www.studentloans.gov. Complete Stafford Loan Entrance Counseling if you are borrowing a Stafford Loan and Graduate PLUS Loan Entrance Counseling if you are borrowing a Graduate PLUS Loan. If you are borrowing both a Stafford and Graduate PLUS Loan, complete Stafford and Graduate PLUS Loan combined entrance counseling.

Visit our financial aid page to learn more about applying for financial aid at UVM, including information about our priority financial aid deadlines.

What do I need to do when I graduate or leave school?

Once you are no longer enrolled at least half time in an eligible program, you will receive a 6-month grace period on your Direct Subsidized and Unsubsidized Loans, during which you are not required to make loan payments. You must begin repayment at the end of your grace period.

You are required to complete exit counseling before you graduate or withdraw, if you had a Stafford (either Subsidized or Unsubsidized) or a Graduate PLUS Loan. Exit counseling is completed at www.nslds.ed.gov.

Last modified August 06 2014 01:22 PM

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