Terms & Conditions of Federal Student Loans
The student loan application you signed is a legal agreement between you and your lender, outlining the terms and conditions of your loan. It is a loan and must be repaid.
Information on Direct Loans
Beginning with the 2010-11 academic year, the University of New Hampshire School of Law will be participating in the Direct Loan Program.The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.
With Direct Loans, you:
- Borrow directly from the federal government and have a single contact—the Direct Loan Servicing Center—for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
- Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the Web at: www.studentloans.gov.
- Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
Federal Stafford Loans
Federal Stafford Loans have a fixed rate of 6.8%. These loans are guaranteed against default by the federal government. All Federal Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation.)
With the unsubsidized Federal Stafford Loan, you can defer the payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan. The majority of students, regardless of need, are eligible for the unsubsidized Federal Stafford Loan.
Repayment begins six months after the student graduates or drops below half-time enrollment. The standard repayment term is 10 years, although one can get access to alternate terms by choosing another repayment option such as extended, graduated, income sensitive and income-based plans.
Federal Graduate Plus Loan Program
Graduate and professional degree students are eligible to borrow under the Federal Graduate Plus Loan Program up to their cost of attendance minus other estimated financial assistance from the Federal Family Education Loan Program (FFELP).
The terms and conditions applicable to Federal Parent PLUS Loan also apply to Federal Graduate PLUS loan. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan (but forbearances are available), and a fixed interest rate of 7.9%.
Students must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Federal Graduate PLUS loan.
Perkins Loan Program
The Federal Perkins Loan is awarded to UNH School of Law students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds.
The Federal Perkins Loan is currently the best student loan available. It is a subsidized loan, with the interest being paid by the federal government during the in-school and 9-month grace periods.
There are no origination or default fees, and the interest rate is 5%. There is a 10-year repayment period, but it can be consolidated with other Federal Loans.