Federal Direct Loans
Direct Loans are low-interest loans for students and parents to help pay for the costs of student's education after high school. These loans funded by the U.S. Department of Education and are awarded by the GCSU Financial Aid Office to eligible undergraduate students. Eligibility for this loan program will be determined upon completion of the Free Application for Federal Student Aid (FAFSA). Eligible students will be offered direct loans once their financial aid eligibility is determined by the Financial Aid Office from the FAFSA process. Students will receive Award Notifications via their bobcat email with information on the maximum amount of loan eligibility they are eligible for at the time of awarding along with instructions on additional steps students must take to Accept, Modify or Decline their aid amount offered to them. They can also get to the instructions at Financial Aid Acceptance/Adjustments | Georgia College & State University.
For all of the following loans, students must have completed the FAFSA for the appropriate aid year and have a complete file. A complete file means all requested documents must be submitted to the financial aid office and eligibility determined with the student meeting all eligibility requirements.
- Direct Subsidized Loan
- Direct Unsubsidized Loan
- PLUS Loan
- Graduate PLUS Loan
Students who modify or decline their loans and then determine that they are in need of borrowing loan funds for their educational expenses, may complete a loan application.
Interest Rates and Loan Fees for Loans
Interest Rates and Loan Fees for Loans
Note: Graduate students are only eligible to receive unsubsidized loans.
Interest rates are established each year for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans for which the first disbursement is on or after July 1 through the following June 30. The rate is the sum of a uniform “index rate” plus an “add-on” that varies depending on the type of loan and whether the borrower is an undergraduate or a graduate/professional student. Under the new provision, interest rates are the same for Direct Subsidized Loans and Direct Unsubsidized Loans taken out by undergraduate students, with a different rate for Direct Unsubsidized Loans taken out by a graduate/professional student and for PLUS Loans taken out by parent borrowers or graduate/professional student borrowers.
Under the law, the index rate is determined each year as the “high yield of the 10-year Treasury note” auctioned at the final auction held prior to the June 1 preceding the July 1 of the year for which the rate will be effective, plus a statutorily defined “add-on”. As noted, the add-on differs depending on the type of loan and the student’s grade level. Each loan type is also subject to a maximum interest rate (or cap). The interest rate for a loan, once established, applies for the life of the loan – that is, the loan is a fixed-rate loan.
| Academic Year | Undergraduate | Graduate | Graduate and Parent | |
|---|---|---|---|---|
| Subsidized | Unsubsidized | Unsubsidized | PLUS | |
| 2023-2024 | 5.50% | 5.50% | 7.05% | 8.05% |
| 2022-2023 | 4.99% | 4.99% | 6.54% | 7.54% |
| 2021-2022 | 3.73% | 3.73% | 5.28% | 6.28% |
| 2020-2021 | 2.75% | 2.75% | 4.30% | 5.30% |
| 2019-2020 | 4.53% | 4.53% | 6.08% | 7.08% |
| 2018-2019 | 5.05% | 5.05% | 6.60% | 7.60% |
| 2017-2018 | 4.45% | 4.45% | 6.00% | 7.00% |
| 2016-2017 | 3.76% | 3.76% | 5.31% | 6.31% |
Loan Fees
Loan fees are the amounts that it cost for a student or parent loan to be originated. Loan fees are calculated as a percentage of the total loan amount. These fees are deducted from each loan disbursement and is subtracted from the loan before it is disbursed to the student or parent. Student and parents should take this fee into consideration when budgeting because the loan fees will mean that the amount received will be an actual amount lower than the amount borrowed. Student and parents will be responsible for paying back the entire amount of the loan prior to the loan fees being deducted.
| Loan Fees for Direct Subsidized and Direct Unsubsidized Loans | |
|---|---|
| First Disbursement Date | Loan Fee |
| On or after 10/1/20 and before 10/1/24 | 1.057% |
| On or after 10/1/19 and before 10/1/20 | 1.059% |
| Loan Fees for Direct PLUS Loans | |
|---|---|
| First Disbursement Date | Loan Fee |
| On or after 10/1/20 and before 10/1/24 | 4.228% |
| On or after 10/1/19 and before 10/1/20 | 4.236% |
Additional information regarding Loan fees can be found on the Student Aid Website.
Difference between Subsidized and Unsubsidized Direct Loans
A subsidized loan is awarded on the basis of financial need. Students will not be charged any interest before they begin repayment or during authorized periods of deferment.
These loans are available to undergraduate students only.
An unsubsidized loan is not awarded on the basis of need. Students are charged interest from the time the loan is disbursed until it is paid in full.
Both undergraduate and graduate students are eligible for unsubsidized loans.
Subsidized/unsubsidized Loan Limits
| Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| First-Year Undergraduate Annual Loan Limit | $5,500-No more than $3,500 of this amount may be in subsidized loans. | $9,500-No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit | $6,500-No more than $4,500 of this amount may be in subsidized loans. | $10,500-No more than $4,500 of this amount may be in subsidized loans. |
| Third Year and Beyond Undergraduate Annual Loan Limit | $7,500 per year-No more than $5,500 of this amount may be in subsidized loans. | $12,500-No more than $5,500 of this amount may be in subsidized loans. |
| Graduate or Professional Student Annual Loan Limit | Not Applicable (all graduate and professional degree students are considered independent). | $20,500 (unsubsidized only). |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000-No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study. |
Plus Loans
PLUS Loans are credit-based loans for the parents of dependent students and for graduate and/or professional students funded by the U.S. Department of Education. There are two types of PLUS Loans.
Federal Direct Parent PLUS Loan (Undergraduate Students)
A Parent PLUS Loan is an education loan specifically for parents (biological or adoptive) of dependent undergraduate students. Parents can borrow up to the cost of attendance minus any other financial aid the student is receiving. For example, if the cost of attendance is $20,000 for the year and a student has a scholarship of $5,000 toward the school cost, the parent can borrow up to $15,000.
Direct PLUS Loans (Graduate Students)
This is a loan option for graduate students to help pay for their educational costs not covered by other aid. Graduate students can borrow up to the cost of attendance minus any other financial aid the student is receiving. For example if the cost of attendance is $30,000 for the year and the student has an unsubsidized loan for $20,500, the student can borrow an additional $9,500 as a direct plus loan.
Process to accept Federal Direct Subsidized Loans/Plus Loans
- Complete the Free Application for Federal Student Aid (FAFSA).
- GCSU Financial Aid will award the loan amount for which a student is eligible for. Students must log in to MyGCSU to accept their loan amount.
- Learn more about accepting or declining loans on our Student Acceptance/Adjustments webpage.
- If you are a first-time loan borrower, you will need to complete Entrance Counseling and sign a Master Promissory Note. Both of these requirements can be found on the Federal Student Aid site.
Private Loans
Students and/or parents are responsible for researching and identifying a private loan lender that best meets their needs. When choosing a lender, students should be aware that private loan requirements can vary.
Some requirements to consider during research include:
- Satisfactory Academic Progress per GCSU’S policy
- Minimum enrollment requirements
- Repayment options
- Interest rates
When the application is completed and approved, GCSU Office of Financial Aid will receive notification of the private loan application and will certify the loan based on the lender’s requirements.