There are two types of low-interest student loans from the federal government specifically for graduate students: Direct Unsubsidized Loans and Direct PLUS Loans. To qualify for these federal loans, you need to be a US citizen or eligible noncitizen and enrolled at least part time in a Mills graduate program.
Direct Unsubsidized Loans | Direct PLUS Loans
Also known as Direct Unsubsidized Loans, this is the primary federal student loan for graduate students. These loans are “unsubsidized” because you don’t have to demonstrate financial need to qualify for them.
Federal Direct Unsubsidized Loans are not credit-based, and the funds come directly from the federal government rather than from a bank or other financial institution.
The College determines the amount a student can borrow, and the amount may not exceed the student’s federally determined financial need. See below for the maximum borrowing limits for Direct Unsubsidized Loans
The origination fee for Direct Unsubsidized Loans is 1.062% for loans first disbursed on or after October 1, 2018, and before October 1, 2019.
This loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. Visit the Federal Student Aid webpage on subsidized and unsubsidized loans for detailed information on loan fees and percentage rates for loans disbursed outside of the dates above.
Interest is charged throughout the life of Direct Unsubsidized Loans. The borrower/student is responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full.
The borrower may choose to pay the interest charged on the loan or allow it to accrue (accumulate) and be capitalized (added to the loan principal) when the loan enters repayment. Capitalizing the interest will increase the amount the borrower must repay.
For graduate students, the interest rate for Direct Unsubsidized Loans first disbursed on or after July 1, 2018, and before July 1, 2019, is fixed at 6.6%. Visit the Federal Student Aid webpage on subsidized and unsubsidized loans for detailed information on current interest rates and how interest is calculated.
The Direct Unsubsidized Loan has a deferment provision so that no repayment of the loan is required while the student is enrolled at least half-time at an eligible post-secondary institution such as Mills. Loan repayment begins six months after the borrower graduates or is no longer enrolled at least half-time.
This federal loan is disbursed in two separate payments, and the second disbursement can be made no earlier than the midpoint of the loan period i.e., if a student is attending fall and spring, one disbursement in fall and one disbursement in spring.
In late May, new students who have been awarded a Direct Unsubsidized Loan will receive additional information regarding requirements for receipt of the loan funds. First-time federal loan borrowers at Mills must complete online Direct Loan Entrance Counseling at www.studentloans.gov.
Entrance counseling provides students with important information regarding student loans such as borrower rights and responsibilities, interest rates, repayment options, consequences of default, etc. so that they can make informed decisions regarding borrowing. Students must also complete a Subsidized/Unsubsidized Master Promissory Note (MPN) at www.studentloans.gov.
All continuing Mills students who plan to apply for a Direct Unsubsidized Loan must complete online Direct Loan Entrance Counseling and a Subsidized/Unsubsidized Master Promissory Note (MPN) at www.studentloans.gov if they have not previously borrowed through the Federal Direct Loan program for their attendance at Mills.
Students who will be using the proceeds of their student loan(s) to pay their college bill must complete all Direct Unsubsidized Loan requirements (entrance counseling and master promissory note through www.studentloans.gov) by July 1 for the fall semester and by December 15 for the spring semester.
Loan processing takes two to four weeks depending on the time of year. Direct Unsubsidized Loan funds for students who applied by the deadline are typically available to be posted to student accounts within the first 30 days of classes for each semester.
Students who decide to borrow through the Direct Unsubsidized Loan program after initially declining their loans must complete all Direct Unsubsidized Loan requirements no later than November 15 for the fall semester and no later than April 15 for the spring semester.
Upon leaving Mills College, students must complete Exit Loan Counseling through www.studentloans.gov. Exit Loan Counseling provides students with important information regarding their loans, including estimated repayment schedules, repayment and deferment options, information on consolidation, etc.
For more information regarding Direct Unsubsidized Loans, including repayment plans and estimated monthly payment amounts, please refer to the federal publication Your Federal Student Loans: Learn the Basics and Manage Your Debt.
Mills determines the loan type(s), if any, and the actual loan amount a student is eligible to receive each academic year. However, there are limits on the amount in unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit.
As of the 2018-19 academic year, the federal loan limits are:
| Dependent Students (except students whose parents are unable to obtain PLUS loans) | Independent Students (and dependent certificate program students whose parents are unable to obtain PLUS Loans) | |
|---|---|---|
| Certificate Program Students Annual Loan Limit | $7,500—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 Students Annual Loan Limit | Not applicable (all graduate and professional 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. | $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. |
Visit the Federal Student Aid webpage on unsubsidized loans for more information and to view the most current borrowing limits.
Direct PLUS Loans are designed to help you pay for educational expenses not covered by Direct Unsubsidized Loans and other forms of aid.
These loans are available to graduate students who have no adverse credit history as determined by the US Department of Education. Direct PLUS Loan funds come directly from the federal government rather than from a bank or other financial institution.
To be eligible to borrow a Direct PLUS Loan, the borrower must:
Students must also meet the general eligibility requirements for federal student aid. Visit the Federal Student Aid webpage on who is eligible for aid for detailed eligibility criteria.
A credit check will be conducted, and the student must not have an adverse credit history. Students who do not pass the credit check may still be able to obtain a graduate PLUS loan if they are able to obtain an endorser who does not have an adverse credit history. An endorser is an individual who agrees to repay the loan if the borrower fails to do so.
In some cases, students may be able to obtain a graduate PLUS loan if they are able to document to the US Department of Education’s satisfaction that there are extenuating circumstances related to the adverse credit history.
Students who plan to borrow through the Direct PLUS Loan program must:
Students must also complete the Free Application for Federal Student Aid (FAFSA) by the published Mills deadlines. For more information on submitting the FAFSA, visit our Applying for Financial Aid webpage.
Graduate students may borrow up to their estimated cost of attendance (as indicated on their financial aid award letter) minus any other financial aid that is awarded.
The origination fee for Direct PLUS Loans is 4.248% for loans first disbursed on or after October 1, 2018, and before October 1, 2019.
This loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. Visit the Federal Student Aid webpage on graduate PLUS loans for detailed information on loan fees and percentage rates for loans disbursed outside of the dates above.
For graduate students, the interest rate for Direct PLUS Loans first disbursed on or after July 1, 2018, and before July 1, 2019, is fixed at 7.6%. This is a fixed interest rate for the life of the loan. Visit the Federal Student Aid webpage on graduate PLUS loans for detailed information on current interest rates.
The Direct PLUS Loan has a deferment provision so that no repayment of the loan is required while the borrower is enrolled at least half-time at an eligible post-secondary institution such as Mills. Loan repayment begins six months after the borrower graduates or is no longer enrolled at least half-time.
During any period when the borrower is not making payments, interest will accrue on this loan. The borrower may choose to pay the interest charged on the loan or allow it to accrue (accumulate) and be capitalized (added to the loan principal) when the loan enters repayment. Capitalizing the interest will increase the amount the borrower must repay.
Visit the Federal Student Aid webpage on PLUS loans for detailed information on repayment plans.
This federal loan is disbursed in two separate payments, and the second disbursement can be made no earlier than the midpoint of the loan period i.e., if a student is attending fall and spring, one disbursement in fall and one disbursement in spring. No disbursement will be greater than half of the loan amount.
Upon leaving Mills College, students must complete Exit Loan Counseling through www.studentloans.gov. Exit Loan Counseling provides students with important information regarding their loans, including estimated repayment schedules, repayment and deferment options, information on consolidation, etc.
For more information regarding Direct PLUS Loans, including repayment plans and estimated monthly payment amounts, please refer to the federal publication Your Federal Student Loans: Learn the Basics and Manage Your Debt.