Aid Programs

The following chart provides a comprehensive picture of the aid programs available, with information on eligibility and application requirements. Note that some of these are administered by lending institutions, or state and federal government agencies. To be eligible for federal loans, students must be matriculated in a degree program and meet all financial aid requirements, including Satisfactory Academic Progress (SAP); in addition, enrollment must be at least half-time (six credits or more). Alternative loan requirements may vary.

Financial Aid Programs
Program	Eligibility Requirements		Funding Source		Annual Award Ranges		Application Instructions
Federal Pell Grant	Undergraduate students with exceptional financial need as determined by the FAFSA		Federal		Maximum award for academic year 2020-21: $6,495		See instructions for need-based aid
Federal Supplemental Opportunity Grant	Undergraduate students with exceptional financial need as determined by the FAFSA		Federal		$750-$4,000 (varies)		See instructions for need-based aid
Direct Loan	Subsidized - Students with demonstrated financial need, enrolled in at least half-time (six credits) status Unsubsidized - Students with no financial need (as determined by the FAFSA), enrolled in at least half-time (six credits) status		Federal		View loan limits		Instructions for the FAFSA Instructions for Master Promissory Note and Entrance Counseling
Direct Parent PLUS Loan	Loans for parents of dependent undergraduate students		Federal		Up to the Cost of Attendance (minus financial aid) per academic year If a parent is not approved for the PLUS loan, the student may be eligible to receive additional unsubsidized funds (varies by grade level)		Instructions for credit check and Master Promissory Note

What are Direct Loans?

These loans are made through the Federal Direct Loan Program, which is administered by the U.S. Department of Education. These loans can be subsidized or unsubsidized. Students can receive a subsidized loan and an unsubsidized loan for the same enrollment period. Loan repayment begins six months after graduation or six months after enrollment is less than half-time (five or fewer credits).

A subsidized loan is is awarded on the basis of financial need.  Financial need is calculated by subtracting the expected family contribution (EFC) from the cost of attendance (COA). The EFC is determined by the Department of Education and is calculated from the student (and/or family's, for dependent students) as reported on the Free Application for Federal Student Aid (FAFSA). The COA for all degree programs is determined by the university. Interest on this loan is not charged while students are in school and enrolled for six or more credits.

An unsubsidized loan is a non-need based loan program. Students will be charged interest on this loan from the time the loan is disbursed until it is paid off. The interest can accrue during enrollment and during other periods of non-payment, but the interest will be capitalized. If the interest is not paid during enrollment, it is accrued and will be added to the principal balance of the loan. Capitalization occurs the day the grace (or deferment) period expires. This additional amount subsequently accrues interest, which adds an additional expense to the loan during repayment.

How much money can I borrow?

The loan amounts a student can borrow depend on grade level in college and on student status (dependent undergraduate, independent undergraduate, and dependent undergraduate students whose parents are unable to secure a Direct PLUS Loan), or graduate student.

Student Annual Loan Limits for Direct Loans (first disbursed on or after July 1, 2008):

Year in College	Dependent Undergraduate Student	Independent Undergraduate Student
1st Year	$5,500 - No more than $3,500 of this amount may be in subsidized loans	$9,500 - No more than $3,500 of this amount may be in subsidized loans
2nd Year	$6,500 - No more than $4,500 of this amount may be in subsidized loans	$10,500 - No more than $4,500 of this amount may be in subsidized loans
3rd and 4th Years (each)	$7,500 - No more than $5,500 of this amount may be in subsidized loans	$12,500 - Non more than $5,500 of this amount may be in subsidized loans.
Maximum Total Debt from Direct/Stafford Loans	$31,000- No more than $23,000 of this amount may be in subsidized loans	$57,500 - No more than $23,000 of this amount may be in subsidized loans

Fairfield University participates with the Direct Loan Program and does not have a preferred lender list. Fairfield University abides by all principles outlined in the CT Code of Conduct.

How do I apply for a Direct Loan?

Students must first submit the FAFSA. The Office of Financial Aid will notify the student in writing (e-mail or mail) of eligibility for a Direct Loan. If accepted, students must complete both the Entrance Counseling and the Master Promissory Note (MPN) in order for the loan proceeds to disburse at the University. These loan requirements can only be completed online through the Department of Education's web site, using the student's Federal Student Aid ID (FSAID).

What are the Direct Loan interest rates and fees?

Current Loan Interest Rates by Disbursement Dates
Loan Type	Borrower Type	Loans first disbursed on or after 7/1/2021 and before 7/1/2022
Direct Subsidized Loans	Undergraduate	3.73%
Direct Unsubsidized Loans	Undergraduate	3.73%
Direct PLUS Loans	Parents	6.28%

For more information on interest rates, visit the Federal Student Aid website.

What are the loan fees? 

Current Loan Fees by Disbursement Dates
Loan Type	First Disbursement Date	Loan Fee
Direct Subsidized Loans and Direct Unsubsidized Loans	On or after 10/1/21 and before 10/1/22 On or after 10/1/21 and before 10/1/22	1.057% 1.057%
Direct PLUS Loans	On or after 10/1/21 and before 10/1/22 On or after 10/1/21 and before 10/1/22	4.228% 4.228%

For more information on loan fees, visit the Federal Student Aid website.

Important Items to Note

• New Direct Loan borrowers on or after July 1, 2013 will not be eligible for new Direct Subsidized Loans if the period in which the borrower has received such loans exceeds 150 percent of the published length of the borrower's educational program.
• A borrower reaching the 150 percent limit becomes ineligible for interest subsidy on all Direct Subsidized Loans first disbursed to that borrower on or after July 1, 2013.
• As part of the Budget Control Act of 2011, which passed on August 1, 2011, for undergraduate Direct/Stafford subsidized loan borrowers whose loans are first disbursed after July 1, 2012, the interest subsidy ceases once a student ceases at least half-time enrollment. The government will no longer subsidize the interest for students during their grace period. This will be in effect for between July 1, 2012-June 30, 2013 and July 1, 2013-June 30, 2014).
• All students who borrow with the Direct Loan programs must also satisfy the Exit Counseling requirement to fully understand the terms of loan repayment. Exit Counseling will be required prior to graduation, at the time of withdrawal, or when enrollment drops below six credits.

What is a Direct PLUS Loan?

The Direct PLUS loan is a loan that a parent can utilize to help pay for a student's educational expenses. This loan is for parents of dependent, undergraduate students who have an official FAFSA on file for the academic year in which the parent wishes to borrow the loan, confirmed enrollment of at least half-time (six credits or more), and who are maintaining Satisfactory Academic Progress (SAP) standards as set by the University. These loans are processed through the U.S. Department of Education. Parents must be credit-worthy and have no adverse credit history.

How much money can a parent borrow?

An eligible parent can borrow up to the cost of attendance (COA) for the academic year, minus any other financial aid the student receives.

What if a parent is NOT approved for the Direct PLUS Loan?

If a parent is not approved for this loan, the student will be eligible to receive more loan funds in a Direct Unsubsidized Loan (amount varies by student status). Students will be notified of any additional loan funds via University e-mail.

How do parents apply for the PLUS Loan?

Parents can submit a credit check and their Master Promissory Note (MPN) online. This Department of Education web site requires the parent use his/her FAFSA Personal Identification Number (PIN). It is very important that after completing the credit check application that the MPN is completed immediately. If both applications are not complete when the loan is approved, the University will not be able to process the loan.

What is the interest rate on this loan?

The interest rate for Direct PLUS Loans disbursed on or after July 1,2021 and before July 1, 2022 is 6.28%. Parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid off.

Is there a charge for this loan?

Yes, there is a 4.228% (effective October 1, 2021) loan origination fee on all Direct PLUS Loans. The fee will be proportionately deducted from each loan disbursement, prior to the Department of Education sending the funds to the school.

How do parents pay back this loan?

When a parent receives the Direct PLUS Loan, he/she will be contacted by the loan's servicer. The loan servicer will provide regular updates on the status of the Direct PLUS Loan and will provide information on how and when to repay the loan. Read more about loan providers.

Payments are generally required on this loan while the student is in school and will begin after the loan is fully disbursed for the year; however, payments can be deferred until six months after the student graduates, leaves school, or is enrolled for less than six credits, only after the payment deferment has been approved by the loan servicer. If payments are deferred during the in-school period and/or the six month post-enrollment period, parents will receive quarterly interest statements and have the option to pay the accrued interest. Unpaid accrued interest will be capitalized (added to the principal loan balance) at either the end of the in-school deferment or, if taken, the end of the six-month post-enrollment deferment, increasing the overall loan costs.