The federal student loans are processed for an academic year, which is two six-month terms with a minimum of 12 competency units per term for undergraduates and 8 competency units per term for graduate students. The University will disburse federal student aid loans in at least two installments. The first half disbursed at the beginning of the loan period and the second half disbursed at the midpoint of the loan period. In order to meet eligibility standards for second and subsequent loan disbursements the student must meet Satisfactory Academic Progress (SAP) requirements and be enrolled in the second six-month term.
Students who receive a Direct Subsidized and/or Direct Unsubsidized Loans are subject to the terms and conditions, along with the borrower’s rights and responsibilities disclosed on the Federal Direct Stafford/Unsubsidized Loan Master Promissory Note (MPN) (opens new window).
Parents of dependent students who receive a PLUS loan are subject to the terms and conditions, along with the borrower’s rights and responsibilities disclosed on the Federal Direct PLUS Loan and Master Promissory Note (MPN) (opens new window).
These loans must be repaid and they cannot be canceled because you did not complete your education or did not get the job you expected. You may use the Federal Student Aid office Repayment Estimator (opens new window) to see the estimated monthly and total payments including the repayment plan (opens new window) options for which you may be eligible. The U.S. Department of Education uses several loan servicers (opens new window) to handle services on federal student loans.