Alternate content for script Text Only VersionSkip to Main Content

Loans

Group of ethnically diverse people outside of Main Building on a spring day surrounded by budding trees

Rosemont College participates in the direct loan which means that federal loans are originated with the federal government instead of with private lending institutions, a common practice used by many schools prior to July 1, 2010 in which all schools were converted to the direct loan system.

Students who qualify for federal student aid generally qualify for Direct Loans. The maximum amount a student can borrow is determined by his or her grade level. First year students can borrow up to $5,500; second year students can borrow up to $6,500; and third and fourth year students can borrow up to $7,500 for the academic year. The annual loan limits include $2,000 Unsubsidized Direct Loan eligibility per academic year. Independent students may be able to borrow additional Unsubsidized Direct Loan in addition to the base loan amounts. Independent students may be able to borrow up to an additional $4,000 Unsubsidized Direct Loan for the first and second academic year and up to an additional $5,000 for the third and fourth academic year. Dependent students whose parents are denied the PLUS can borrow at the same loan limits as independent students.

Annual Loan Limits - Direct Loan
Dependent
Students
Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Subsidized and Unsubsidized Loans
First-Year
Undergraduate
$3,500 $2,000 $5,500
Second-Year
Undergraduate
$4,500 $2,000 $6,500
Third & Fourth Year
Undergraduate
$5,500 $2,000 $7,500
Independent
Students
Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Subsidized and Unsubsidized Loans
First-Year
Undergraduate
$3,500 $6,000 $9,500
Second-Year
Undergraduate
$4,500 $6,000 $10,500
Third & Fourth Year
Undergraduate
$5,500 $7,000 $12,500

The amount of Direct Subsidized/Unsubsidized Loan listed on the financial aid award letter is the gross amount. The government charges loan processing fees of 1% upfront on all new loans effective July 1, 2010 with an upfront rebate of .05% for future on time payments for a net fee of .05%. The net amount of the loan will be reflected on your student bill. A Direct Plus loan has a loan fee of 4.0% with an upfront rebate of 1.5% for a net fee of 2.5%.

If the student has financial need, a portion of the Direct Loan will be Subsidized (which means the federal government pays the interest during the enrollment and 6-month grace periods). If the student has no financial need, if the financial need has been met through other sources, or if the student has already borrowed the maximum Subsidized, then the Direct Loan will be Unsubsidized (the student is responsible for the interest during the enrollment and 6-month grace periods). Interest on Direct Unsubsidized Loans begins to accrue after disbursement, however, the student may choose to have the interest payments deferred during enrollment and capitalized (added to principal) at the time repayment begins.

Direct Subsidized Loans for undergraduate students disbursed between July 1, 2011 and June 30, 2012 will have a fixed interest rate of 3.4%, and Direct Unsubsidized Loans during this timeframe will have an interest rate of 6.8%.  For graduate students, both Direct Subsidized/Unsubsidized Loans will have a fixed interest rate of 6.8% 

In addition to the annual loan limits, there is a limit to the total amount a student can borrow during his or her educational career. The chart below summarizes the lifetime Direct Loan limits.

Aggregate Loan Limits - Direct Loan
  Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Subsidized and Unsubsidized Loans
Dependent Undergraduate Students $23,000 $8,000 $31,000
Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) $23,000 $34,500 $57,500