Student Loans

Federal Direct Student Loan recipients borrow directly from the federal government. Undergraduate Federal Direct Student Loans can be subsidized - meaning interest does not accrue while the student is enrolled at least half-time, or unsubsidized - interest begins accruing at the time of disbursement. Subsidized loan eligibility is need based which is determined by FAFSA results and the amount of other financial assistance received. Changes in financial assistance or financial need can affect a student's eligibility for subsidized loans. All Federal Direct Student Loans for graduate students are unsubsidized.

In order to be eligible for a Federal Direct Loan a student must be enrolled at least half-time at Bradley University. The table below shows the number of credit hours required for half-time enrollment.

Semester	Undergraduate	Graduate
Fall	6	4
Spring	6	4
Summer	6	3

Federal Direct Student Loans must be repaid. Repayment begins six months after a student graduates, leaves school, or drops below half-time enrollment. While enrolled in college at least half-time there is no repayment obligation.

The interest rate on a Federal Direct Student Loan varies depending on the initial date of disbursement. The table below shows the interest rates for Federal Direct Subsidized and Unsubsidized Loans.

Initial Date of Disbursement	Undergraduate	Graduate
July 1, 2020 - June 30, 2021	2.75%	4.30%
July 1, 2021 - June 30, 2022	3.73%	5.28%
July 1, 2022 - June 30, 2023	4.99%	6.54%
July 1, 2023 - June 30, 2024	5.50%	7.05%
July 1, 2024 - June 30, 2025	6.53%	8.08%

** Interest rates for prior years can be found online at Federal Student Aid.

 

The federal government deducts an origination fee from all federal loans that are disbursed. The current origination fee for all Federal Direct Subsidized and Unsubsidized Loans is 1.057%.

There are annual borrowing limits for undergraduates who borrow Federal Direct Student Loans based on the student’s year in school which are shown in the table below. In addition to the annual borrowing limits there are also lifetime borrowing limits for undergraduate students. The lifetime limit is $31,000 for dependent undergraduate students and $57,500 for students that qualify for additional unsubsidized eligibility*.

Year in School	Dependent Student	Additional Unsubsidized Eligibility*
First Year Undergraduate	$5,500   (max $3,500 Subsidized)	$4,000
Second Year Undergraduate	$6,500   (max $4,500 Subsidized)	$4,000
Third Year and Beyond Undergraduate	$7,500   (max $5,500 Subsidized)	$5,000

*Additional eligibility is granted to independent undergraduate students or undergraduate students whose parents are unable to obtain a PLUS Loan.

 

Graduate students may qualify for up to $20,500 in Federal Direct Unsubsidized Loans per academic year. The lifetime borrowing limit for graduate students is $138,500 which includes all Federal Direct Subsidized and Unsubsidized Loan borrowing at the undergraduate and graduate level.

Entrance Counseling and Master Promissory Note

First time Federal Direct Student Loan borrowers must complete Entrance Counseling and sign a Master Promissory Note (MPN). Borrowers needing to complete Entrance Counseling and/or a Master Promissory Note will be contacted to do so via email. Both items can be completed at Studentaid.gov and instructions are included below.

• Entrance Counseling
• Master Promissory Note

Entrance Counseling ensures that borrowers understand the responsibilities and obligations associated with borrowing a Federal Direct Student Loan. The Master Promissory Note is a legal document in which the borrower promises to repay the loans borrowed and any accrued interest and fees to the U.S. Department of Education. A Master Promissory note is valid for up to 10 years and may be used for more than one loan. The MPN will require two references from different households. A parent/guardian should be the first reference used for dependent students. Please contact the Student Loans Office at (309) 677-3155 or by e-mail at loans@bradley.edu with any questions or if you prefer to complete a paper copy of the MPN.

Exit Counseling

Exit Counseling is required of Federal Direct Student Loan borrowers who: drop below half-time, cease attendance, or graduate. Exit Counseling must be completed even if you are transferring to another school or going on to graduate school.

Exit Counseling can be completed at Studentaid.gov using your FSA ID (same FSA ID used to sign the FAFSA). Please include Bradley University as one of the schools to receive notification of completed Exit Counseling. During Exit Counseling you will update your contact information, review current information about your loans, and determine your repayment strategy. Any questions regarding Exit Counseling should be directed to the Student Loan Office at (309) 677-3155.