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 percent 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 |
Statutory |
Percentage |
Dollar Reduction |
Adjusted Maximum |
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 |
|||
---|---|---|---|
Loan Type |
First Disbursed |
Loan Fee |
Fee Example |
Direct Subsidized |
FY 20 |
1.059 |
$58.24 on a |
FY 21 |
1.057 |
$58.13 on a |
|
Direct PLUS |
FY 20 |
4.236 |
$423.60 on a |
FY 21 |
4.228 |
$422.80 on a |
|
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 |
Parents of Dependent Undergraduate Students and Graduate/Professional Students |
5.30% |
Direct Loan Interest Rates for 2019-2020
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, 2019 and before July 1, 2020.
Loan Type |
Borrower Type |
Fixed Interest Rate |
---|---|---|
Direct Subsidized Loans |
Undergraduate Students |
4.53% |
Direct Unsubsidized Loans |
Undergraduate Students |
4.53% |
Direct Unsubsidized Loans |
Graduate/Professional Students |
6.08% |
Direct PLUS |
Parents of Dependent Undergraduate Students and Graduate/Professional Students |
7.08% |
TEACH Grant updates for 2019-2020
A TEACH Grant where the first disbursement is on or after October 1, 2019 and before October 1, 2020 requires a reduction of 5.9 percent from the award amount for which the student would otherwise have been eligible.
The following chart shows the FY 20 sequester-required TEACH Grant Program reductions as they apply to the 2019-2020 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 |
2019-2020 |
First disbursed on or after October 1, 2018 and before 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 |
Direct Loan Origination Fees for 2018-2019
The Department of Education has released information indicating the Direct Loan student origination fee will decrease for loans first disbursed after October 1, 2019. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.059%. The fee on a loan for $5,500 will be $58.24 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.236%. The fee on a $10,000 Direct PLUS loan would be $424.60 (truncated to nearest cent, not rounded).
The following chart shows the sequester-required loan fees for FY 2019 and FY 2020.
Direct Loan Fees |
|||
---|---|---|---|
Loan Type |
First Disbursed |
Loan Fee |
Fee Example |
Direct |
FY 19 |
1.062 |
$58.41 on a |
FY 20 |
1.059 |
$58.24 on a |
|
Direct PLUS |
FY 19 |
4.248 |
$424.80 on a |
FY 20 |
4.236 |
$423.60 on a |
|
Loan fee calculations that result in more than two decimal places must be truncated (not rounded) to two digits after the decimal point (cents). |
Direct Loan Origination Fees for 2018-2019
The Department of Education has released information indicating the Direct Loan student origination fee will decrease for loans first disbursed after October 1, 2018. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.062%. The fee on a loan for $5,500 will be $58.41 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.248%. The fee on a $10,000 Direct PLUS loan would be $424.80 (truncated to nearest cent, not rounded).
The following chart shows the sequester-required loan fees for FY 2018 and FY 2019.
Direct Loan Fees for FY 18 and FY 19 |
||||
---|---|---|---|---|
Loan Type |
Impacted Loans |
Loan Fee |
Fee Example |
|
Direct Subsidized |
FY 18 |
1.066 |
$58.63 on a $5,500 loan |
|
FY 19 |
1.062 |
$58.41 on a $5,500 loan |
||
Direct PLUS |
FY 18 |
4.264 |
$426.40 on a |
|
FY 19 |
4.248 |
$424.80 on a |
||
Loan fee calculations that result in more than two decimal places must be truncated (not rounded) to two digits after the decimal point (cents). |
As a reminder, the loan fee percentage for a loan is determined by the date of the first disbursement of the loan. Any subsequent disbursements of that loan, even if made on or after the relevant October 1, have the same loan fee percentage that applied to the first disbursement of that loan.
TEACH Grant updates for 2018-2019
A TEACH Grant where the first disbursement is on or after October 1, 2018 and before October 1, 2019 requires a reduction of 6.2 percent from the award amount for which the student would otherwise have been eligible.
The following chart shows the FY 18 and FY 19 sequester-required TEACH Grant Program reductions as they apply to the 2017-2018 and 2018-2019 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 |
2017-2018 |
First disbursed prior to October 1, 2017 (FY 17 Sequester) |
$4,000 |
6.90% |
$276.00 |
$3,724.00 |
First disbursed on or after October 1, 2017 and before October 1, 2018 (FY 18 Sequester) |
$4,000 |
6.60% |
$264.00 |
$3,736.00 |
|
2018-2019 |
First disbursed on or after October 1, 2017 and before October 1, 2018 (FY 18 Sequester) |
$4,000 |
6.60% |
$264.00 |
$3,736.00 |
First disbursed on or after October 1, 2018 and before October 1, 2019 (FY 19 Sequester) |
$4,000 |
6.20% |
$248.00 |
$3,752.00 |
Direct Loan Interest Rates for 2018-2019
Federal Direct Student Loans 2018-2019 Interest Rates Effective for Loans First Disbursed on or after July 1, 2018 and prior to July 1, 2019
Loan Type |
Borrower Type |
Fixed Interest Rate |
---|---|---|
Direct Subsidized Loans |
Undergraduate Students |
5.05% |
Direct Unsubsidized Loans |
Undergraduate Students |
5.05% |
Direct Unsubsidized Loans |
Graduate/Professional Students |
6.60% |
Direct PLUS |
Parents of Dependent Undergraduate Students |
7.60% |
Direct Loan Origination Fees for 2017-2018
Student loan origination fees are decreasing! Increased origination fees mean decreased disbursements of your loans. The Department of Education has released information indicating the Stafford Direct Loan student origination fee will increase for loans first disbursed after October 1, 2017. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.066%. The fee on a loan for $5,500 will be $58.63 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.264%. The fee on a $10,000 Direct PLUS loan would be $426.40 (truncated to nearest cent, not rounded).
The following chart shows the sequester-required loan fees for FY 2017 and FY 2018.
Direct Loan Fees for FY 17 and FY 18 |
|||
Loan Type |
Impacted Loans |
Loan Fee |
Fee Example |
---|---|---|---|
Direct Subsidized |
FY 2017 |
1.069 |
$58.79 on a $5,500 loan |
FY 2018 |
1.066 |
$58.63 on a $5,500 loan |
|
Direct PLUS |
FY 2017 |
4.276 |
$427.60 on a $10,000 loan |
FY 2018 |
4.264 |
$426.40 on a $10,000 loan |
|
Loan fee calculations that result in more than two decimal places must be truncated (not rounded) to two digits after the decimal point (cents). |
TEACH Grants first disbursed after October 1, 2017 and before October 1, 2018 will be reduced by 6.6% percent. A student who was eligible to receive the full TEACH Grant Scheduled Award amount of $4,000 would have the award reduced by $264 ($4,000 x 6.6%), resulting in an award amount of $3,736.
The following chart shows the FY 2017 and FY 2018 sequester required TEACH Grant Program reductions as they apply to the 2016-2017 and 2017- 2018 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 |
2016-2017 |
First disbursed on or after October 1, 2015 and before October 1, 2016 (FY 2016 Sequester) |
$4,000 |
6.80% |
$272.00 |
$3,728.00 |
First disbursed on or after October 1, 2016 and before October 1, 2017 (FY 2017 Sequester) |
$4,000 |
6.90% |
$276.00 |
$3,724.00 |
|
2017-2018 |
First disbursed on or after October 1, 2016 and before October 1, 2017 (FY 17 Sequester) |
$4,000 |
6.90% |
$276.00 |
$3,724.00 |
First disbursed on or after October 1, 2017 and before October 1, 2018 (FY 18 Sequester) |
$4,000 |
6.60% |
$274.00 |
$3,736.00 |