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OFFICE OF FINANCIAL AID

Sequester to Impact Loan Fees on Student Loans

Automatic federal budget cuts known as the “sequester” will affect Direct Loan fees for loans disbursed after July 1, 2013.  For a Direct Subsidized or Unsubsidized Stafford loan, the loan fee will increase from 1.0% of the principal amount of a loan to 1.051%.  For Direct PLUS Loans for both parent and graduate student borrowers, the loan fee will increase from 4.0 percent to 4.204 percent. This law does not change the amount or terms or conditions of Direct Loans.

Beginning on December 1st, 2013, the loan fee for Direct Subsidized and/or Unsubsidized Stafford loans will increased from 1.051% to 1.072%. For Direct PLUS Loans for both parent and graduate student borrowers, the loan fee will increased from 4.204% to 4.288%.