Loan Programs
Financial Aid Services at UMass Amherst administers several types of federal and state need-based loans as well as a federal non need-based loans. The need-based loans are the Federal Perkins Loan, the William D. Ford Federal Direct Subsidized Loan and the Massachusetts No Interest Loan. The non need-based loan is the William D. Ford Federal Direct Unsubsidized Loan. To be considered for these loans, students must submit the FAFSA.
Federal Perkins Loans
These loans amounts usually range from $500 to $4,000 annually, with a total undergraduate aggregate limit of $20,000. The interest rate is fixed at 5% and repayment may extend for up to ten years. No interest is charged and no repayment is required while a student is enrolled at least half time (a minimum of six credits per semester) or during a nine-month grace period following graduation or withdrawal from school. Information pertaining to repayment, cancellation, and deferment is included on the promissory note. Additional information is available on the university’s controller’s office.
Please note that meeting eligibility requirements does not guarantee loan availability.
William D. Ford Federal Direct Loans
The William D. Ford Federal Direct Loan program is administered by the U. S. Department of Education. The William D. Ford Federal Direct Loan program, also referred to as the Federal Stafford Loan program, is awarded as subsidized or unsubsidized. Subsidized Direct Loan is awarded based on need. The federal government pays the interest on the subsidized Direct Loan while the student is enrolled in school and during the six-month grace period after graduation or withdrawal from school. The unsubsidized direct loan is awarded regardless of family income or financial need. Interest payments for this loan begin the day the loan is disbursed and can be paid monthly, quarterly, or capitalized (added to the principle loan amount and incorporated into the monthly payments at repayment). Loan amount vary based on dependency status and year in college. Detailed information about Direct Loan limits can be found in the Loan Limits section of the Web site. Several flexible repayment options are available. Visit Federal Student Aid for more information on the Direct Loan program. The interest rate for these loans can vary annually but never exceeds 8.25%.
You can receive subsidized and unsubsidized loans for the same loan period, although the combination of both cannot exceed the Direct Loan limits, and you must apply for the subsidized loan first. You may complete the master promissory note for this loan through UMass Amherst or online at the Federal Student Aid Web site once UMass Amherst originates your loan.
Massachusetts No Interest Loan (NIL)
This is a need-based loan for eligible state residents funded through the Massachusetts Office of Student Financial Assistance (OSFA) (funding for this loan is limited). No Interest Loan awards range from a minimum of $1,000 to a maximum of $4,000. Students who receive it must take at least twelve units each term to retain eligibility and begin repayment six months after leaving school or dropping below six units. There is no interest or origination fees. If you receive this loan, you must sign a promissory note and an entrance interview form. Financial Aid Services will notify you when the promissory note is ready for signing, and once you submit the note, the funds will be disbursed to your university account. Additional information about the NIL can be found on the OSFA website.
Direct Loan Links
Direct Loan Information: Find out about applying for Direct Loans, learn about the options you have for repayment, use the interactive calculators, download Direct Loan deferment and forbearance forms, and get information about Direct Loan Consolidation.
Direct Loan Master Promissory Note: Complete your William D. Ford Federal Direct Loan promissory note online.
Direct Loan Servicing Online: This Web site is for students and parents who have Direct Loans or are considering financing an education and want to know more about Direct Loans. You may use your PIN to access specific information about your account and payments due.
The National Student Loan Data Systems: An online tool to obtain information regarding your student loan history, overpayments, Pell Grant history, and enrollment history.
