2009-2010 Financial Aid Award Guide

Federal Loan Programs

Federal Perkins Loan

Students who demonstrate significant financial need and meet UM’s Priority Deadline will be considered for Federal Perkins Loans. Perkins Loan funds are limited. If you accept a Perkins Loan Award, the Office of the Bursar will send you a Perkins Loan Promissory Note.

The Perkins Loan is interest free while you are enrolled in school at least half-time in a degree-granting program. The interest rate during repayment is fixed at 5%. Repayment begins 9 months after you cease to be enrolled at least half-time. The maximum repayment period for this loan is 10 years.

Federal Stafford Loan Programs

Stafford Loans are available to students who meet federal aid eligibility requirements, submit a FAFSA, and enroll as degree-seeking students for at least 6 credits per semester. Students who demonstrate financial need may be eligible to borrow Subsidized Stafford Loans; students who do not demonstrate financial need may be eligible to borrow Unsubsidized Stafford loans.

Subsidized Federal Stafford Loan Terms

The interest rate for the 2009-2010 academic year is fixed at 5.6% for undergraduate students and 6.8% for graduate students. The government pays the interest until you enter repayment. Repayment begins 45 days after the grace period expires, which is 6 months after the borrower leaves school or drops below half-time.

Unsubsidized Federal Stafford Loan Terms

As of July 1, 2006, the interest rate is fixed at 6.8%. You are responsible for the interest from the date of disbursement. The interest payments can be deferred while you are in school. Repayment begins 45 days after expiration of the six month grace period. You may request to begin repayment of the interest 45 days after the last disbursement.

Stafford Loan Borrowing Limits

Annual Borrowing Limits for Dependent Students (and Undergraduate Students whose parents were not denied a PLUS loan):

Grade Level	Combined Base Limit for Subsidized and Unsubsidized Loans	Additional Limit for Unsubsidized Loans	Total Limit for Unsubsidized Loans (minus subsidized amounts)
First-Year Undergraduate (Freshman)	$3,500	$2,000	$5,500
Second-Year Undergraduate (Sophomore)	$4,500	$2,000	$6,500
Third-Year and Beyond Undergraduate (Junior, Senior)	$5,500	$2,000	$7,500

Annual Borrowing Limits for Independent Students (and dependent students whose parents were denied a PLUS loan):

Grade Level	Combined Base Limit for Subsidized and Unsubsidized Loans	Additional Limit for Unsubsidized Loans	Total Limit for Unsubsidized Loans (minus subsidized amounts)
First-Year Undergraduate (Freshman)	$3,500	$6,000	$9,500
Second-Year Undergraduate (Sophomore)	$4,500	$6,000	$10,500
Third-Year and Beyond Undergraduate (Junior, Senior)	$5,500	$7,000	$12,500
Graduate or Professional	$8,500	$12,000	$20,500

Lifetime Borrowing Limits:

Grade Level	Combined Base Limit for Subsidized and Unsubsidized Loans	Additional Limit for Unsubsidized Loans	Total Limit for Unsubsidized Loans (minus subsidized amounts)
Dependent Undergraduate Students (whose parents were not denied a PLUS loan)	$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
Graduate or Professionsal	$65,000	$57,500	$138,500

*Aggregate limits for graduate students include loans borrowed as an undergraduate student.

Parent Loan for Undergraduate Students (PLUS)

Parents of dependent students enrolled at least half-time may apply for Federal PLUS Loans and may borrow the full cost of education minus all other financial aid. PLUS applications are subject to lender's credit review. This loan may be used to cover your Expected Family Contribution (EFC). As of July 1, 2006, the interest rate is fixed at 8.5%. The borrower is responsible for the interest from ten days after the date of disbursement. Repayment begins 45 days after the last disbursement unless deferred. Most PLUS Loan lenders will not allow parents to defer payments while the student is still in college. This information is available on our website at www.financialaid.umd.edu to request information on PLUS Loans.