Another type of financial aid available to graduate students is non-need-based. This type includes various unsubsidized loans that can be used to replace the "expected family contribution" (EFC).
The Financial Aid Office certifies these loans because they cannot exceed the cost of attendance minus any need based aid received by the student. The recommended maximum amount is $20,000 per year. You may borrow more, if needed.
- Interest is fixed. The current interest rate is 6% (in-school & grace).
- Interest is not subsidized (paid) by the federal government and begins accruing upon disbursement; borrower has the option to pay the interest during enrollment or allow it to accrue.
- Unpaid interest will be capitalized by the lender and added to the principal of the loan upon graduation.
- Maximum annual loan of $40,500 (1st years), $43,833 (2nd years), and $47,167 (3rd and 4th years) (unsubsidized loans cannot exceed the Cost of Attendance); aggregate total (undergraduate and graduate) of $224,000.
- Financial need not required.
- Student borrows directly from the Department of Education's Direct Loan Program.
- A 1.066% origination fee will be deducted from the loan proceeds before disbursement.
- Grace period of 6 months after enrollment ceases.
- Deferment and Forbearance options available.
- Standard 10-year repayment schedule; extended repayment schedule available to some borrowers with large debts; minimum $50/month payment.