Tulane participates in the Direct Loan Program. The federal government through the U.S. Department of Education is your lender for the Direct Loan Program. Federal Direct Subsidized and Unsubsidized Loans are offered to eligible students who are enrolled at least half-time (based on the standards for full-time in each division) and who meet all other eligibility criteria.
Eligible undergraduate students who have financial need may be offered a Direct Subsidized Loan, on which no interest will be charged before repayment begins (except during the grace period for loans made between July 1, 2012 and July 1, 2014) or during authorized periods of deferment. Interest is charged during the repayment period on a Direct Subsidized Loan.
Regardless of financial need, eligible students may qualify for a Direct Unsubsidized Loan. Interest on the Direct Unsubsidized Stafford Loan will begin to accrue when the loan is disbursed and be capitalized to the principal balance when the repayment period begins.
Federal Direct loans for an academic year are generally disbursed in two equal installments. Typically, students who are enrolled for the standard academic year will receive their first disbursement in August and their second disbursement in January. Funds are automatically credited to student Tulane Accounts Receivable accounts after students confirm their registration for the semester and continue to meet all eligibility requirements. Students can check their student accounts on-line by following Accounts Receivable website instructions.
Each aid year, eligible students may borrow a combination of Subsidized and Unsubsidized Federal Direct Loans each year up to a base amount limit (or Cost of Attendance minus other aid, whichever is less) plus an additional Federal Unsubsidized Direct Loan amount (as long as Cost of Attendance minus other aid is not exceeded). Direct Loan eligibility will be packaged by the University Financial Aid Office. Subsidized Direct Loans will additionally be limited to being 150% of an eligible student's credential program length for new borrowers on or after 7/1/13.
$31,000 (no more than $23,000 of which can be subsidized)
$57,500 (no more than $23,000 of which can be subsidized)
$138,500 (no more than $65,500 of which can be subsidized; NOTE: graduate-level students will be ineligible for new Subsidized Loans as of July 1, 2012)
$224,000 (no more than $65,500 of which can be subsidized; NOTE: graduate-level students will be ineligible for new Subsidized Loans as of July 1, 2012)
The origination fee is currently 1.0% on Direct Subsidized or Unsubsidized Loans; HOWEVER, sequestration has caused fees to minimally change during each federal fiscal year. Currently, for loans first disbursed on or after October 1, 2018 (but before October 1, 2019), the fee rate is 1.062%; for loans first disbursed on or after October 1, 2019 (but before October 1, 2020), the fee rate is 1.059%.
*Current law (The Bipartisan Student Loan Certainty Act of 2013) states that the interest rate will be based on the high yield of the 10-year Treasury note at the final auction held prior to June 1 preceding the July 1 of the year for which the rate will be effective, plus a statutorily defined "add-on," subject to an interest rate cap, and that the loan will be a fixed-rate loan. The fixed interest rate for the next year will not be known until after the final auction occurs.
The six months after a student graduates, leaves school, or drops below half-time enrollment is called the "grace period". During the grace period, students will not have to make any payments on the outstanding principal balance, but will be charged interest (except for Subsidized Loans disbursed before 7/1/12 or after 7/1/14). During the grace period, the servicer will send the student information about repayment, including the date repayment begins. Prepayment may be made on Federal Direct Loans without penalty. Students are responsible for beginning payment on time, regardless of if they receive this information. Students may discuss repayment plans with their servicer, including how often they may switch plans.
If you decide to withdraw from Tulane after receiving a federal loan, please contact your Dean's office to discuss the withdrawal process. You should also visit the Tulane Financial Aid Office to discuss how withdrawing will affect your federal loan.
Federal regulations require students who have borrowed a Federal Stafford Loan and are graduating, leaving school, or dropping below half-time enrollment to complete an exit counseling session. During this session, borrowers review the terms of the loan, borrower rights and responsibilities, and the consequences of default.
Note: The average federal student loan (Federal Direct and/or Stafford Loans) principal of a borrower who entered Tulane as a first-time full-time freshman and who graduated with a bachelor's degree from Tulane between 7/1/14 and 6/30/15 was $27,849. Forty-two percent of those who entered Tulane as a first-time full-time freshman and who graduated with a bachelor's degree from Tulane between 7/1/14 and 6/30/15 borrowed federal student loan funding.
Please refer to the Federal Student Loan website for historical information on the interest rates of federal student loans.