The interest subsidy is paid by the federal government while the borrower is in school, and payments are deferred until six months after the borrower ceases to be enrolled at least half-time. Based on year in school and financial need, students may borrow up to annual maximums set by the federal government. The interest rate varies, but the maximum is 8.25 percent. Parents of dependent students can borrow a Federal Direct PLUS Loan through the Direct Loan program. For each dependent student, each year parents may borrow up to educational costs minus the amount of other aid the student receives.
Payments begin while the student is still in school.
The interest rate varies, but the maximum is 9 percent. Although most guidelines for awarding financial aid to Urbana-Champaign students are determined by the Office of Student Financial Aid, some aid programs are administered by groups and agencies to which the student applies directly. To make more money available to a maximum number of students, applicants should borrow as little as is necessary for as short a period of time as possible. The interest charge on overdue short-term loans is 18 percent annually on the unpaid balance. Students who are U.S. citizens or permanent residents should apply in person to the Office of Student Financial Aid.