Loans are borrowed money that must be paid back within a time frame, and it accrues interest. Loans can be provided by the federal government, known as federal student loans, or can be offered by banks or private lenders. When taking out a loan is it important to understand the interest rates, repayment time period, and benefits. The only federal loans offered to graduate students are unsubsidized.
Federal Direct Loans
Federal Direct Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. If the student is eligible for a subsidized loan, the government will pay (subsidize) the interest on the loan while the student is enrolled at least half-time during school and during the grace period (six months after the student graduates or falls below half-time attendance). Unsubsidized loans accrue interest during school. The student is not required to but may make payments on the interest portion of the unsubsidized loan. Depending on financial need and class level, students may receive a subsidized or unsubsidized loan, or a combination of both.
If you choose to accept the Federal Direct Loan in your financial aid award, you must complete the Entrance Counseling and Federal Direct Loan Master Promissory Note (MPN) at studentloans.gov.
*Please Note: When arriving at the Federal Student Aid website, you will be prompted to login with your FSA ID Username and Password. The FSA ID has replaced what was previously the PIN number and you will need to create an FSA ID if you have not done so already.
Entrance Counseling is designed to help you better understand the terms and conditions of the Federal Direct Loan you are borrowing, as well as your rights and responsibilities before you borrow money from the Federal government.
The Federal Direct Loan Master Promissory Note is the document that makes you legally responsible for repaying your Federal Direct Loans. *Please note: when prompted to select the loan you would like to receive, select "Subsidized/Unsubsidized."
Federal regulations require that both of these documents be completed prior to the disbursal of the Federal Direct Loans. Both of these documents are completed online at studentloans.gov and are good for up to 10 years. Returning students who have previous loans through the Federal Direct Loan program do not need to complete a new Entrance Counseling or MPN for the Federal Direct Loan program.
For more information on the Federal Direct Loan Program, please visit their website.
You will also be required to complete Loan Exit Counseling upon graduating or upon leaving the University of Redlands. This process is crucial and will provide you with important information in regards to repaying your loan.
You will begin repayment on your Direct Loans six months after you graduate, leave the University of Redlands, or drop below half-time. The Federal Direct Loan program offers options to students who need help with repayment of Federal Direct Loans including consolidation, deferment, forbearance, and income-sensitive repayment.
To view information regarding your Federal loan debt, please access the National Student Loan Data System (NSLDS).
Graduate and Professional Student Interest Rate and Origination Fee
Unsubsidized Loan fixed interest rate: 8.08%*
Loan origination fee: 1.057%*
*For loans disbursed July 1, 2024 to June 30, 2025
For more information on the Federal Direct Loan Program, please visit their website.
- $5,500 (maximum $3,500 subsidized)*
- $5,500 + $4,000 additional unsubsidized funding** - Freshman
- $6,500 (maximum $4,500 subsidized)*
- $6,500 + $4,000 additional unsubsidized funding** - Sophomore
- $7,500 (maximum $5,500 subsidized)*
- $7,500 + $5,000 additional unsubsidized funding** - Junior, Senior, 5th year undergraduate
- $20,500 unsubsidized funding - Graduate Student
*Annual loan limits include $2000 Unsubsidized Direct Loan available to all loan recipients.
** Additional Unsubsidized loans are available to independent students as well as dependent students whose parent is unable to borrow through the Federal Direct Parent PLUS Loan program due to adverse credit history.
*** Teaching Credential is considered a 5th year undergraduate program.