Students may qualify for a subsidized Federal Direct Loan, which is based on financial need. Students can also acquire an unsubsidized Federal Direct Loan, which is not based on need-that is, personal or family income level is not considered. The federal government pays the interest on need-based Federal Direct Loans while the borrower is in school or a deferment status. The interest rate is variable but will not exceed 8.25 percent. Interest rates are set each year in June.
Loan amounts vary based on grade level and dependency status.
Repayment begins six months after the student leaves school or attendance drops below half time. For annual award amounts and general repayment terms, students should see the UMUC Guide to Financial Aid. The Federal Direct PLUS Loan program enables parents with good credit histories to borrow for a dependent student enrolled for at least 6 credits per semester. It is a federal loan program, available to parents of undergraduate dependent students, that is not based on need. Parents are eligible to borrow up to the cost of education less other financial aid received by the student.