Boston University Medical Campus
Student Financial Services

Federal Loan Programs

William D. Ford Federal Direct Loan Program – Established by the Student Loan Reform Act of 1993, the William D. Ford Federal Direct Loan Program provides students with loans directly from the Department of Education rather than through a private lender and a guarantee agency, as does the Federal Family Education Loan Program (which includes the subsidized and unsubsidized Stafford Loans).

The interest rate is adjusted annually on July 1 but will never exceed 8.25%. You will not be charged interest on the subsidized loan while you are enrolled in school at least half time, during the six-month grace period, or during deferment periods. Interest on the unsubsidized loan is charged from the date of disbursement until the loan is paid in full; interest payments may be made while you are in school or the interest may be capitalized at repayment.

Borrowers may defer repayment if they are attending an eligible school at least half-time; attending a graduate or fellowship program approved by the U.S. Department of Education; are in an approved rehabilitation training program for individuals with disabilities; or may defer up to three years for unemployment or economic hardship.

The annual subsidized Direct Loan limit is $8,500. The annual unsubsidized Direct Loan limit is $10,000, but students not eligible for $8,500 may borrow additional money with the unsubsidized loan. For the past few years, many students have been eligible for increased unsubsidized loans, normally not to exceed $20,000 per year for MED and SDM and $12,500 for SPH. To be eligible for these additional funds you must be registered as a full-time student, a U.S. citizen or a Permanent Resident without conditions on your card.

Direct Loan borrowers can complete their Entrance Counseling and Master Promissory Note (MPN) on-line at the Boston University Loans and Work website.

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