Financial Aid

News and Updates

Changes to 2021-2022 Verification Requirements

To provide relief to millions of students and colleges facing challenges and barriers resulting from the ongoing national emergency, the Department of Education is focusing on identity and fraud in the 2021-2022 verification process. This means verification is being waived for most Free Application for Federal Student Aid/Institutional Student Information Record (FAFSA®/ISIR) information, except for Identity/Statement of Educational Purpose and High School Completion Status. This waiver begins July 13, 2021, and applies for the remainder of the 2021-2022 FAFSA processing and verification cycle. The University may still reach out to resolve conflicting information concerning a student’s eligibility. 

Direct Loan Origination Fees for 2021-2022

The Department of Education has released information indicating the Direct Loan student origination fee will remain the same for loans first disbursed after October 1, 2021. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.057%. The fee on a loan for $5,500 will be $58.13 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.228%. The fee on a $10,000 Direct PLUS loan would be $422.80 (truncated to nearest cent, not rounded).

The following chart shows the sequester-required loan fees for FY 2021 and FY 2022.

Direct Loan Fees
for FY 20 and FY 21

Loan Type

First Disbursed

Loan Fee
Percent

Fee Example

Direct Subsidized
Loans and Direct
Unsubsidized
Loans

FY 21
On or after
October 1, 2020, and before
October 1, 2021

1.057

$58.13 on a
$5,500 loan

FY 22
On or after
October 1, 2021, and before
October 1, 2022

1.057

$58.13 on a
$5,500 loan

       

Direct PLUS
Loans (Parent
and Grad/Prof
Student)

FY 21
On or after
October 1, 2020, and before
October 1, 2021

4.228

$422.80 on a
$10,000 loan

FY 22
On or after
October 1, 2021, and before
October 1, 2022

4.228

$422.80 on a
$10,000 loan

Loan fee calculations that result in more than two decimal places must be truncated to two digits after the decimal point (cents).

TEACH Grant Updates for 2021-2022

A TEACH Grant where the first disbursement is on or after October 1, 2021, and before October 1, 2022, requires a reduction of 5.7% from the award amount for which the student would otherwise have been eligible.

The following chart shows the FY 22 sequester-required TEACH Grant Program reductions as they apply to the 2021-2022 award year.

TEACH Grant Awards

Award Year

Impacted
Awards

Statutory
Maximum
Scheduled
Award
Amount

Percentage
Reduction
from
Statutory
Award
Amount

Dollar Reduction
Amount from
Maximum Award
Amount

Adjusted Maximum
Award Amount

2021-2022

First disbursed on or after October 1, 2020, and before October 1, 2021 (FY 21 Sequester)

$4,000

5.70%

$228.00

$3,772.00

First disbursed on or after October 1, 2021, and before October 1, 2022 (FY 22 Sequester)

$4,000

5.70%

$228.00

$3,772.00

Direct Loan Interest Rates for 2021-2022

The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2020, and before July 1, 2021.

Loan Type

Borrower Type

Fixed Interest Rate

Direct Subsidized Loans

Undergraduate Students

3.73%

Direct Unsubsidized Loans

Undergraduate Students

3.73%

Direct Unsubsidized Loans

Graduate/Professional Students

5.28%

Direct PLUS 
Loans

Parents of Dependent Undergraduate Students and Graduate/Professional Students

6.28%

Note: In response to the COVID-19 emergency relief period, the interest rate on all Direct Loans has been temporarily set at 0% until at least September 30, 2021. Once the COVID-19 emergency relief period ends, the rates as described in this announcement will be in effect for loans first disbursed on or after July 1, 2021.

TEACH Grant Updates for 2020-2021

A TEACH Grant where the first disbursement is on or after October 1, 2020, and before October 1, 2021, requires a reduction of 5.7% from the award amount for which the student would otherwise have been eligible.

The following chart shows the FY 20 and FY 21 sequester-required TEACH Grant Program reductions as they apply to the 2019-2020 and 2020-2021 award years.

TEACH Grant Awards

Award Year

Impacted
Awards

Statutory
Maximum
Scheduled
Award
Amount

Percentage
Reduction
from
Statutory
Award
Amount

Dollar Reduction
Amount from
Maximum Award
Amount

Adjusted Maximum
Award Amount

2019-2020

First disbursed prior to October 1, 2019 (FY 19 Sequester)

$4,000

6.20%

$248.00

$3,752.00

First disbursed on or after October 1, 2019, and before October 1, 2020 (FY 20 Sequester)

$4,000

5.90%

$236.00

$3,764.00

           

2020-2021

First disbursed on or after October 1, 2019, and before October 1, 2020 (FY 20 Sequester)

$4,000

5.90%

$236.00

$3,764.00

First disbursed on or after October 1, 2020, and before October 1, 2021 (FY 21 Sequester)

$4,000

5.70%

$228.00

$3,772.00

Direct Loan Origination Fees for 2020-2021

The Department of Education has released information indicating the Direct Loan student origination fee will decrease for loans first disbursed after October 1, 2020. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.057%. The fee on a loan for $5,500 will be $58.13 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.228%. The fee on a $10,000 Direct PLUS loan would be $422.80 (truncated to nearest cent, not rounded).

The following chart shows the sequester-required loan fees for FY 2020 and FY 2021.

Direct Loan Fees
for FY 20 and FY 21

Loan Type

First Disbursed

Loan Fee
Percent

Fee Example

Direct Subsidized
Loans and Direct
Unsubsidized
Loans

FY 20
On or after
October 1, 2019, and before
October 1, 2020

1.059

$58.24 on a
$5,500 loan

FY 21
On or after
October 1, 2020, and before
October 1, 2021

1.057

$58.13 on a
$5,500 loan

       

Direct PLUS
Loans (Parent
and Grad/Prof
Student)

FY 20
On or after
October 1, 2019, and before
October 1, 2020

4.236

$423.60 on a
$10,000 loan

FY 21
On or after
October 1, 2020, and before
October 1, 2021

4.228

$422.80 on a
$10,000 loan

Loan fee calculations that result in more than two decimal places must be truncated to two digits after the decimal point (cents).

Direct Loan Interest Rates for 2020-2021

The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2020, and before July 1, 2021.

Loan Type

Borrower Type

Fixed Interest Rate

Direct Subsidized Loans

Undergraduate Students

2.75%

Direct Unsubsidized Loans

Undergraduate Students

2.75%

Direct Unsubsidized Loans

Graduate/Professional Students

4.30%

Direct PLUS 
Loans

Parents of Dependent Undergraduate Students and Graduate/Professional Students

5.30%