Financial Aid

News and Updates

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%

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 
Loans

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% 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
for FY 19 and FY 20

Loan Type

First Disbursed

Loan Fee
Percent

Fee Example

Direct
Subsidized
Loans and Direct
Unsubsidized
Loans

FY 19
On or after
October 1, 2018, and
before
October 1, 2019

1.062

$58.41 on a
$5,500 loan

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

1.059

$58.24 on a
$5,500 loan

       

Direct PLUS
Loans (Parent
and Grad/Prof
Student)

FY 19
On or after
October 1, 2018, and
before
October 1, 2019

4.248

$424.80 on a 
$10,000 loan

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

4.236

$423.60 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).

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
Percent

Fee Example

Direct Subsidized
Loans and Direct
Unsubsidized
Loans

FY 18
On or after
October 1, 2017, and before
October 1, 2018

1.066

$58.63 on a

$5,500 loan

FY 19
On or after
October 1, 2018, and before
October 1, 2019

1.062

$58.41 on a

$5,500 loan

 
         

Direct PLUS
Loans (Parent
and Grad/Prof
Student

FY 18
On or after
October 1, 2017, and before
October 1, 2018

4.264

$426.40 on a 
$10,000 loan

 

FY 19
On or after
October 1, 2018, and before
October 1, 2019 

4.248

$424.80 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).

 

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% 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 
Loans

Parents of Dependent Undergraduate Students
and Graduate/Professional 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
Percent

Fee Example

Direct Subsidized
Loans and Direct
Unsubsidized
Loans

FY 2017
First disbursed on or after
October 1, 2016, and before
October 1, 2017

1.069

$58.79 on a

$5,500 loan

FY 2018
First disbursed on or after
October 1, 2017, and before
October 1, 2018

1.066

$58.63 on a

$5,500 loan

       

Direct PLUS
Loans (Parent
and Grad/Prof
Student

FY 2017
First disbursed on or after
October 1, 2016, and before
October 1, 2017

4.276

$427.60 on a

$10,000 loan

FY 2018
First disbursed on or after
October 1, 2017, and before
October 1, 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