Federal Direct Student Loans

Federal Direct Loans are available to eligible students enrolled in an eligible degree program on at least a half-time basis (six credit hours per term).

Students interested in applying for a Federal Direct Loan must complete:

1) The Free Application for Federal Student Aid for the appropriate school year.

2) The appropriate Federal Direct Loan application:

2008 Summer Federal Direct Loan Application
2008–09 Academic Year Federal Direct Loan Application

These applications must be submitted at least six weeks prior to the start of the term for Direct Loan funding to be available by the time classes begin.

There are two categories of Federal Direct Loans:

Direct Subsidized Loans are made to students who demonstrate eligibility for need-based financial aid. The federal government pays the interest that accrues on the Subsidized Loan while the student is enrolled, and payments need not be made until six months after graduation, withdrawal from school or reduction to less than half-time status.

Direct Unsubsidized Loans are available to those students who do not demonstrate eligibility for need-based aid. Interest does accrue on the Unsubsidized Loan during the student’s enrollment. Repayment of principal plus accrued interest, begins six months after graduation, withdrawal from school or reduction to less than half-time status. (Accrued interest may be paid during enrollment, if the student wishes to do so.)

Law and graduate students may borrow up to $20,500, of which a maximum of $8,500 may be a Direct Subsidized Loan.

Interest on Direct Subsidized and Unsubsidized Loans is fixed at 6.8%.

A 2.0% origination fee, minus the 1.5% rebate, means that total fees of 0.5% are deducted from the amount borrowed.

The Standard Repayment Plan allows for a repayment period of 10 years. Alternative repayment plans allowing for a longer repayment period are available.

Upon receipt of the appropriate application materials, the Financial Aid Office will determine your eligibility and originate your loan. If you have previously borrowed a Direct Loan and signed a Master Promissory Note, then you will not need to sign another note. New borrowers must sign a Master Promissory Note, to be done electronically per instructions that will be provided to you. First-time borrowers must also complete Loan Entrance Counseling (instructions regarding this will be provided to you once your loan has originated).  

For academic year loans, two equal disbursements are made—one at the beginning of each semester—through a direct credit to your account with the University of Richmond. For summer session and single-term loans, one disbursement is made at the beginning of the term.