Beginning this fall, Arizona State University is participating in a Department of Education study that aims to reduce student loan debt and contribute to the financial success of participating borrowers. All ASU students are being made aware of the study. Select students will be required to complete enhanced loan counseling each year prior to receiving their loans. If you do not accept loans or are not chosen to participate in the study, you will not be required to do anything. Students that are selected to participate in the study, will be notified by email and see it posted as a To Do item in the Priority Tasks box on My ASU in early June. Participants can expect to take a deeper dive into topics such as borrowing, repayment, and budgeting through iGrad, ASU’s financial wellness partner.
Student loans are funds provided to a student for educational expenses and are considered self-help financial aid because you must repay the money loaned to you. Loans are the last type of aid for which you are considered, after gift aid and Federal Work-Study. Federal student loan programs offer favorable terms reserved for students. Interest rates are lower than typical consumer rates.
Monitoring Your Loan Limits and Debt
It is your responsibility to monitor your Federal Direct Subsidized and Unsubsidized aggregate and annual loan limits. If you reach your total undergraduate aggregate limit, total Federal Direct Subsidized and Unsubsidized aggregate loan limits or your annual loan limit, you will not be eligible to receive any additional Federal Direct Subsidized and Unsubsidized loans, see Federal Direct Subsidized and Unsubsidized loan limit amounts. If the Financial Aid and Scholarship Services Office determines at any time you have exceeded your annual or aggregate loan limits, your awards could be reduced or cancelled after you have received the funds, see examples of students owing loan funds back to ASU.
To monitor your annual and aggregate Federal Direct Subsidized and Unsubsidized loan amounts, please go to: nslds.ed.gov/nslds/nslds_SA/. There you will find a list of all the loans you have borrowed and which servicer is maintaining your loan.
Before borrowing, remember that loans must be repaid. Use a loan payment calculator to investigate how much your monthly payment may be before you decide to borrow loans. Use the U.S. Department of Education Financial Awareness Counseling tool at any time to assist you with financial management basics, including information about your current loan debt and estimates of your student loan debt levels after graduation.
Types of Federal Student Loans
ASU students are eligible for the federal student loans listed below. The information on this page is periodically reviewed and updated to reflect current federal rates and requirements and is subject to change without prior notice. Please visit Federal Student Aid on the Web for up-to-date information and a comprehensive list of federal student loan information.
| Federal Direct Subsidized | Federal Direct Unsubsidized | |
|---|---|---|
| Who may receive this loan? | Undergraduate students with financial need | All students |
| What is the interest rate for 2019-2020? | 4.53% (undergraduates) | 4.53% (undergraduates) 6.08% (graduates) |
| How much can I get? | Depends on your grade level and dependency status | Depends on your grade level and dependency status |
| How many credits do I have to be enrolled to receive this loan? | You must be enrolled at least half-time* | You must be enrolled at least half-time* |
| When does the government pay my interest? |
|
You pay all interest charged over the course of your loan term |
| Other than interest, is there a charge for this loan? | Yes, there is a 1.059% loan origination fee on all disbursements | Yes, there is a 1.059% loan origination fee on all disbursements |
| When do I begin repayment? | Six months after you graduate or drop below half-time* enrollment | Six months after you graduate or drop below half-time* enrollment |
| Can my loan be canceled, forgiven or discharged? | Under certain conditions, you may have all or part of your loan canceled, discharged, or forgiven | Under certain conditions, you may have all or part of your loan canceled, discharged, or forgiven |
* Half-time enrollment is six credits for undergraduate students and five credits for graduate students. Equivalency letters cannot be used to substantiate full-time, three-quarter time or half-time enrollment for federal student loans.
† If you receive a Federal Direct Subsidized Loan that is first disbursed between July 1, 2012 and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance. If you receive a Federal Direct Subsidized Loan that is first disbursed on or after July 1, 2014, it will be eligible for the interest subsidy during your grace period.
Graduate PLUS Loan
Federal Direct PLUS loans are also available for graduate students. Graduate PLUS Loan Info
