Federal Direct Loans are available to undergraduate students, regardless of family income, for up to $5,500 for the first year of school, $6,500 for the second year, and $7,500 for the third and fourth years. Graduate students may borrow up to $20,500 in a federal direct unsubsidized loan in an academic year. Some undergraduate students may be eligible to borrow through the subsidized
portion of the Federal Direct Loan program, in which no interest accrues while the student is enrolled at least half time. However, at least $2,000 of each of these amounts can be offered only through the unsubsidized
portion of the program.
The 2018-19 interest rate is fixed at 5.05% for both subsidized
loans for undergraduate students. The 2018-19 interest rate for unsubsidized loans for graduate students is fixed at 6.6%. In the unsubsidized portion of the program, interest accrues while the student is in school and may be paid or capitalized. In both portions of the program borrowers pay an origination fee of roughly 1%. Colgate will always award as much subsidized loan as possible before awarding unsubsidized loan; however, in some cases the student is eligible for an unsubsidized loan only.
Students wishing to request a Federal Direct Loan should first submit the FAFSA or Free Application for Federal Student Aid online
. They should then contact the Office of Financial Aid and Student Employment to indicated how much they wish to borrow, within the annual limits noted above.
For further information, you may visit our About Loans
page or you may contact the Office of Financial Aid