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ONE STOP STUDENT SERVICES

Federal Student Loans

Federal Subsidized Student Loans:

  1. Federal Perkins Loan
    • A need-based student loan guaranteed by the U.S. Department of Education for students with exceptional financial need.
    • Government pays interest on the loan while the student is:
      • Enrolled at least half-time
      • In their grace period
        • A period of time (six months) after the student graduates or drops to below half-time status
      • In deferment
        • Postponement of loan payments due to reenrollment of at least a half-time status
    • Loan funds are automatically sent to UMD to be applied to the student bill
    • Repayment begins nine months after the student graduates or falls below half-time status; whichever happens first
    • See the Federal Student Aid website on Perkins Loans for more information.
  2. Ford Federal Subsidized Loan
    • A need-based student loan guaranteed by the U.S. Department of Education
    • Government pays interest on the loan while the student is:
      • Enrolled at least half-time
      • In their grace period
        • A period of time (six months) after the student graduates or drops to below half-time status
      • In deferment
        • Postponement of loan payments due to reenrollment of at least a half-time status
    • Loan funds are automatically sent to UMD to be applied to the student bill
    • Repayment begins six months after the student graduates or falls below a half-time status; whichever happens first
    • See the Federal Student Aid website for more information.

Federal Unsubsidized Student Loan:

  1. Ford Federal Unsubsidized Loan
    • A non need-based student loan guaranteed by the U.S. Department of Education
    • Government does not pay interest on the loan; student is responsible for payment of the interest during all loan periods:
      • While enrolled
      • During grace period
      • During deferment
    • If the student chooses not to pay interest, the interest will accrue and capitalize on the loan amount borrowed
    • Interest rates are determined each June
    • Interest is fixed
    • Loan funds are automatically sent to UMD to be applied to the student bill
    • Repayment begins six months after the student graduates or falls below a half-time status; whichever happens first
    • See the Federal Student Aid website for more information.