Financial Aid

Direct Loan Facts

Looking for more detailed information about the Federal Direct Loan Program? Here are some basic guidelines.

Fees

The federal government charges an origination fee of up to 1% when the loans are issued. Therefore, a student borrowing $3,500 in the Subsidized Loan will receive 1% less credited to their student account, disbursed in two installments, one in the fall and one in the spring.

Subsidized vs. Unsubsidized

There are two main differences between the Subsidized Direct Loan and the Unsubsidized Direct Loan: interest rate and subsidy.

The federal government pays for the interest on the Subsidized Direct Loan while a student is enrolled at least half-time. Interest on the Unsubsidized Direct Loan accrues from the time the money disburses on the student's account to the time the loan is repaid.

Over a four-year period beginning July 1, 2008, the interest rate on Federal Direct Loans made to undergraduate students was reduced. The applicable interest rates for loans made during this period are as follows: 

Disbursement Date

Subsidized Interest

Unsubsidized Interest

July 1, 2012 -June 30, 2013 3.4% 6.8%   
July 1, 2011 -June 30, 2012 3.4%6.8%   
July 1, 2010 -June 30, 2011 4.5% 6.8%   
July 1, 2009 -June 30, 20105.6.% 6.8%   
July 1, 2008 -June 30, 2009  6.0% 6.8%   
July 1, 2007 -June 30, 2008 6.8% 6.8%   

Repayment

Repayment begins six months after graduation, at a minimum of $50 per month. Your actual repayment is determined by the total amount borrowed and interest accrued. In general, there is a maximum of 10 years to repay the loan.

Federal Direct Loan Limits

Annual and grade level limits in the Federal Direct Loan program (subsidized and unsubsidized) are as follows:

School Year

Maximum Subsidized

Maximum Unsubsidized

Freshman

$3,500

 $2,000

Sophomore

$4,500

 $2,000

Junior

$5,500

 $2,000

Senior

$5,500

 $2,000

5th Year Senior

$5,500

 $2,000

Graduate Student

$8,500

 $2,000

 

Maximum aggregate borrowing in the Federal Direct Loan program (subsidized and unsubsidized):

StatusAmount
Dependent Undergraduates$31,000
Dependent Undergraduates/Parents ineligible for PLUS$57,500
Independent Undergraduates$57,500
Graduate Students$138,500

These loan limits apply to the Direct Loan programs only. A student may borrow more than these amounts in any one year (if eligible) and may accumulate more than the aggregates shown by borrowing in different loan programs. These loans are for educational purposes only.

 

  • Mailing Address:
    Occidental College
    Financial Aid Office
    1600 Campus Road F-35
    Los Angeles, CA 90041
  • Location:
    Arthur G. Coons
    Administrative Center
  • Phone: (323) 259-2548
  • Fax: (323) 341-4961
  • Email: finaid@oxy.edu