One of the best qualities of Newman University is the upstanding education provided, but having a great education can be expensive no matter what University you attend.
For this reason, Newman participates in the Title IV programs provided by the federal government. Participation in these programs allows Newman to offer federal funds that make receiving the best education more affordable. Three types of Federal Loans are offered to help students, which include:
- Federal Direct Subsidized/Unsubsidized Loan 3.76% / 4.45%
- Federal Direct Graduate Unsubsidized Loan 5.31% / 6.00%
- Federal Direct Graduate/Parent PLUS Loan 6.31% / 7.00%.
(Disbursement dates are 07/1/2016 – 06/30/2017 and 7/1/2017 – 06/30/2018.)
According to Director of Financial Aid Myra Pfannenstiel, “The U.S. Treasury Department holds a 10-year Treasury Note auction each year in early May. The results of this auction are then used to determine the upcoming academic year’s Federal Direct Loan interest rates. For the 2017-2018 academic year, interest rates will be higher based on this auction. The chart above reflects the interest rate differences from the 2016-2017 to the 2017-2018 academic year.”
But how do all these loans work?
Federal Direct Subsidized and Unsubsidized Loan are loans from the U.S. Department of Education for undergraduate, graduate, and professional students. The Federal Direct Subsidized and Unsubsidized Loans represent two types of loans made under the Federal Direct Loan Program.
While a Federal Direct Subsidized Loan is awarded to students demonstrating financial need, a Federal Direct Unsubsidized Loan can be awarded to any eligible student regardless of financial need.
The federal government will pay the interest for the student borrower of a Federal Direct Subsidized loan, while the student borrower of a Federal Direct Unsubsidized Loan is responsible for paying the interest that accrues on the loan from the time of disbursement.
Lastly, the Federal Direct Graduate PLUS Loan and Parent PLUS Loan are based on credit. The borrower is responsible for the interest, and repayment would start 30 to 60 days after the last disbursement. However, deferments may be granted by contacting the lender. For specific loan information, visit the Federal Financial Aid page on the Newman University website.
What do these loans mean for current and potential students?
“These loans are often the only way a student can finance their education,” explained Pfannenstiel. “While students will see an increase in the interest rates for Federal Direct Loans they use for their 2017-2018 educational costs, it is still a great option to achieve their educational goals. Assisting students with financing their education is a core mission of the financial aid office.”