Direct Loan Information
UMDNJ will participate in the William D. Ford Direct Lending program for all federal subsidized and unsubsidized student loans and federal PLUS loans for the 2010-2011 academic year. In prior years UMDNJ students have borrowed through the Federal Family Education Loan Program (FFELP) in which lending institutions provided Stafford subsidized and unsubsidized loan funds. Effective July 1, 2010 the FFELP funding will be discontinued and replaced by the Direct Loan Program. Please review the financial aid website for details on this transition as well as an extensive FAQ.
All NEW and CONTINUING Financial Aid Applicants applying for Federal Direct Loans are required to complete the Direct Loan Master Promissory Note prior to receipt of these Federal Direct Loan funds.
In order to complete the MPN you will need:
- Federal Student Aid PIN
- Permanent address
- Mailing address
- Telephone number
- E-mail address
- Reference information (name, address, telephone number) for 2 people you have known for at least 3 years.
- First reference should be a parent or legal guardian.
- Approximately 30 minutes to complete in a single session
About the new Federal Direct Loan Program
University of Medicine and Dentistry will participate in the William D. Ford Federal Direct Loan Program for all federal subsidized and unsubsidized student loans and federal PLUS loans.
Eligibility Requirements for students borrowing a Direct Loan, both subsidized and unsubsidized:
- You must be a U.S. Citizen or a Permanent Resident.
- You must be enrolled at least half-time.
- You must maintain satisfactory academic progress.
- You cannot be in default on a federal student loan.
Federal Direct Subsidized Loans
Direct Subsidized loans are for students with demonstrated financial need as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods. For loans disbursed on or after July 1, 2010 and before July 1, 2011 the interest rate is 4.5% for undergraduates and 6.8% for graduate/professional students. There is a 1.0% origination fee with an up-front rebate of .5%.
Federal Direct Unsubsidized Loans
Direct Unsubsidized Loans are not based on financial need and interest is charged during all periods. The interest rate is 6.8% for undergraduates and graduate/professional students. There is a 1.0% origination fee with an up-front rebate of .5%.
Federal Direct Grad PLUS Loans
Direct PLUS Loans are low-interest loans for graduate/professional degree students. The interest rate is 7.9% and the origination fee is 4.0% with an up-front rebate of 1.5%.
The eligibility requirements for a graduate student to borrow a Direct PLUS Loan are:
- You must be a U.S. citizen or eligible non citizen, must not be in a default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.
- A credit check that will be performed, excluding anyone with an adverse credit history.