News and Updates

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.