Federal Programs

Among available federal loan programs, the Federal Direct Unsubsidized Stafford Loan is preferred because it has lower fees, lower interest rates and capitalization of interest. Federal Work-Study awards, which reduce the amount of the loan to which a student is entitled, are paid out as they are earned.

Federal Student Loans

The US Department of Education has announced the 2017-2018 Direct Loan interest rates. For students and parents whose loan first disburses between July 1, 2017 and June 30, 2018, the following interest rates apply:

  • Federal Direct Stafford Loans (Unsubsidized) for Graduate borrowers: 6.00 percent fixed
  • Federal Direct PLUS Loans (graduate student borrowers): 7.00 percent fixed
Unsubsidized Federal Direct Stafford Student Loans:
  • require a Free Application for Federal Student Aid (FAFSA),
  • are not based on need,
  • carry a 6.95% interest rate for Graduate students when first disbursed between July 1, 2018 and June 30, 2019,
  • are available to all students who maintain satisfactory academic progress and are registered at least half-time (6 credits),
  • require repayment beginning six months after a student’s enrollment drops below half-time status or the student graduates,
  • begin accruing interest charges as soon as UConn receives the money,
  • allow students to pay the interest while still in law school or defer interest payments until becoming less than half time or graduating. (If a student chooses the second option, the interest that accrues while in law school will capitalize, adding to the principal balance, when entering repayment.),
  • require new students or new borrowers to complete a Stafford Loan Master Promissory Note and Federal Loan Counseling,
  • are available with a maximum loan per academic year of $20,500 per student, and
  • carry a 1.066% origination fee (subject to change 10/1/18) levied by the U.S. Department of Education. This fee is deducted from the loan by the Department of Education before the proceeds are credited to student accounts.
Federal Direct PLUS – Graduate Student Loans:
  • require a Free Application for Federal Student Aid (FAFSA),
  • are not based on need,
  • carry a 7.595% fixed interest rate when first disbursed between July 1, 2018 and June 30, 2019,
  • require a credit check to establish eligibility,
  • require students to maintain Satisfactory Academic Progress and be registered at least half-time (6 credits),
  • allow graduate student borrowers to defer payment until six months after enrollment drops below half time or to begin repayment at any time after disbursement,
  • require graduate student borrowers to complete an online application via studentloans.gov every year after April 1,
  • require graduate student borrowers to complete the PLUS MPN requirement (which is in ADDITION to the Stafford MPN) at studentloans.gov once credit is approved,
  • require first-year and first-time graduate PLUS borrowers to complete entrance counseling,
  • are available in a to a maximum loan amount equal to the cost of attendance minus all other aid received, including the Unsubsidized Stafford Loan, and
  • carry a 4.264% origination fee (subject to change 10/1/18) levied by the U.S. Department of Education. This fee is deducted from the loan by the Department of Education before the proceeds are credited to student accounts.
Federal Work-Study Program

Federal Work-Study (FWS) is a federally funded program for students who demonstrate financial need. Work-study funds are limited and offered to eligible students based on financial need and in order of application filing date.

Students are responsible for securing their own work-study jobs. Unlike other forms of financial aid, an FWS award is not applied to a student’s fee bill. Instead, students receive biweekly paychecks for hours worked. Students must complete the Free Application for Federal Student Aid (FAFSA) form and indicate interest in work-study to be considered for Federal Work-Study.

Student Labor

Under the Student Labor program, students may apply for the same pool of jobs available to work-study students and do not have to demonstrate financial need. The difference is that Student Labor wages are paid by the department employing the student, not by the Federal Work-Study program.

Please contact the Office of Student Employment for further information.