Loans Menu
Helpful Links
RIHEAA's Most Popular
For a complete list, visit our Helpful Links page.
Popular External Links
The following are links to external sites that prove helpful to most students.
Social Links
 

Federal Direct Loans
General Eligibility Requirements

To qualify for a Direct Loan a student must:

  • be a US citizen or eligible non-citizen;
  • be enrolled or accepted for enrollment as, at least, half-time status in a:
  1. degree, certificate or other program leading to a recognized educational credential; or
  2. course of study necessary for enrollment in a degree or certificate program; or
  3. program necessary for a professional credential or certificate required by a State for employment as an elementary or secondary school teacher;
  • if already enrolled, be making satisfactory academic progress as defined by the school's satisfactory academic progress policy;
  • not owe a refund on any Title IV grant or Perkins Loan;
  • if in default on any Title IV loan, must make satisfactory repayment arrangements with the holder of that loan(s) to re-establish Title IV eligibility.
Application Procedure
  • Applicants must file a Free Application for Federal Student Aid (FAFSA)
  • Applicants must file a loan application for a Direct Loan
  • The FAFSA is available on the web (No Longer on Paper!!)
  • Students may obtain a Master Promissory Note (MPN) from a college financial aid office.
Application Deadline
Loan applications can be certified up to the last day of program enrollment.
Direct Subsidized Loan
  • Student must demonstrate financial need
  • This loan is a low interest, federally subsidized loan
  • Available to eligible students for attendance at post-secondary institutions
  • US Department of Education pays the interest that accrues during the in-school, grace, and authorized deferment periods
Direct Unsubsidized Loan
  • Eligibility requirements are the same as they are for the subsidized loan
  • Students are not required to demonstrate financial need
  • This loan is a low interest loan
  • Available to eligible students for attendance at post-secondary institutions
  • Interest is NOT subsidized by the US Department of Education
  • Students are responsible for the interest that accrues on the loan from the date of first disbursement
  • Payment of principal is not required during the in-school, grace, or authorized deferment period
  • Student can defer interest payments or make payments during the in-school and grace periods
Borrowing Limits Under H.R. 5715
Dependent Students(Except Students Whose Parents Cannot Borrow PLUS) Base Amount Additional Unsubsidized loan amount
Prior to July 1, 2008 Effective July 1, 2008
Freshmen $3500 0 $2000
Sophomore $4500 0 $2000
Junior or Senior $5500 0 $2000

Independent Undergraduate Students and Dependent Students Whose Parents Cannot Borrow a PLUS Loan Base Amount Additional Unsubsidized loan amount
Prior to July 1, 2008 Effective July 1, 2008
Freshmen $3500 $4000 $6000
Sophomore $4500 $4000 $6000
Junior or Senior $5500 $5000 $7000

Loan Limits Base Amount Subsidized/Unsubsidized Additional Unsubsidized
Preparatory Undergraduate $2625 $4000
1st Year Undergraduate $3500 $4000
2nd Year Undergraduate $4500 $4000
3rd year and beyond Undergraduate $5500 $5000
Teacher Certification $5500 $7000
Preparatory Graduate/Professional $5500 $7000
Graduate/Professional $8500 $12000
Direct Subsidized Loan Interest Rates

The legistlation lowers interest rates for a five year period for undergraduate direct subsidized loans for both the FFEL and Direct loan programs. The reductions apply to loans with first disbursements made:


  • On or after July 1, 2010 and before July 1, 2011 at the rate of 5.6%
Repayment Periods (FFEL)

Loan Amounts Maximum Term
Less than $7,500 10 Years
$7,500 - $9,999 12 Years
$10,000 - $19,999 15 Years
$20,000 - $39,999 20 Years
$40,000 - $59,999 25 Years
$60,000 and higher 30 Years
 

ABOUT SSL CERTIFICATES