Ford Federal Direct Loan

Ford Direct Loan Promissory Note

The University is participating in the Ford Federal Direct Loan Program established by the Student Loan Reform Act of 1993. The federal program provides a new and simpler way for you to obtain and repay educational loans. The Ford loans described in this section are offered instead of the Federal Family Education Loan Program (Stafford Student Loans) of previous years. 

Instead of borrowing from private lending institutions, you borrow from the federal government. The OSFA will determine your loan eligibility, approve the loan, receive the funds from the federal government, and credit the loan proceeds directly to your student account.

Subsidized and Unsubsidized Ford/Stafford Federal Direct Loan Limit

Subsidized Loan

The Subsidized Loan program is a need-based program administered by the University and the federal government. You must be admitted to, and enrolled at least half-time, in a degree program to be eligible. 

You can borrow the maximum annual loan limit from the Ford/Stafford Federal Direct Loan only once between fall and summer. If you borrow the maximum annual loan limit during Fall and Spring Semesters, you will not be eligible for additional Ford/Stafford Federal Direct Subsidized Loan funds for the summer. 

If you drop below half-time status during a term, future disbursements will be cancelled. Full-time students may be offered awards up to an annual loan maximum (see table on this page). 

• You will be charged a 2 percent origination fee on the gross amount borrowed. 

• The interest rate is variable, adjusted annually with a cap at 8.25 percent. 

• Repayment begins six months after you graduate, withdraw, or your enrollment drops below half time. Full details are provided on the promissory note, which will be sent to you separately after you accept the loan award.

• All Freshman students are required to wait 30 days before the first disbursement occurs.

Unsubsidized Loan

This non-need-based loan may be available for students who do not qualify for, or who are eligible for less than the annual loan limit of a need-based Ford/Stafford Federal Direct Subsidized Loan. The same terms and conditions apply except the borrower pays interest while in school. The interest can be deferred while in school, however, the interest will be capitalized and added to your loan principal when you begin repayment.