Changes to Federal Loan Interest Rates for 2014-15
On Tuesday, May 7, 2014, the Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 2.612%. Direct Loan types (Subsidized, Unsubsidized, PLUS loans and Direct Consolidation Loans) for which the first disbursement is made on or after July 1, 2014 has been revised as follows:
- Direct Subsidized 4.66%
- Direct Unsubsidized 4.66%
- Direct PLUS 7.21%
- Direct Unsubsidized Loans (for Graduate/Professional students) 6.21%
Net Partner-Financial Aid Information Delivery System continues to be a fast and cost effective means of communication
By going to MLC’s portal and the secure Net Partner site, you will be able to access your financial aid from anywhere in the world using only an internet browser. No longer will you need to remember to take home, or to whichever part of the world you are going during summer vacation, the award letter and important information that were included. Here are some of the things you can do:
- Learn of required documents needed to verify your FAFSA. When documents needed are determined, we send an email advising you to log in to Net Partner.
- Print forms that need to be completed so you can return them as an attachment by email, fax, or via the postal service.
- View the financial aid you are awarded. Again, we notify you by email that your aid is processed.
- Accept loans by printing the Loan Request Form and completing the process outlined on the form.
- Net Partner does not include your Student Billing Account information
Only students who have submitted a FAFSA can have an electronic account.
New Federal Directive Regarding the Federal Direct Subsidized Loan
Until recently, Direct subsidized loan interest has been paid by the federal government during the six month grace period, which is the period of time immediately after a student graduates, withdraws or ceases to be enrolled at least half time.
Now, however, if you received a subsidized loan for which the first disbursement was made on or after July 1, 2012, and before July 1, 2014, you will be responsible for the interest that accrues while your loan is in the grace period.
You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends. This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.