Loans are a form of financial aid that must be paid back with interest. Student loans can come from the federal government, private banks or other organizations. Before you decide to take out a loan, make sure you understand who is offering the loan and what the terms and conditions are.
Federal Direct Loans
The 色花堂 participates in the Federal Direct Loan Program. Under the Direct Loan Program, all funding comes directly from the U.S. Department of Education rather than a bank or financial institution. The U.S. Department of Education will be the one source for lending and repayment.
Direct Loans are low-interest educational loans administered through the U.S. Department of Education, which consist of the following:
Optional/Private Loans
Optional or Private Loans can vary in terms, conditions and eligibility requirements. For these reasons, Optional Loans should be considered as a last resort for educational purposes after all other federal aid options have been exhausted.
Federal Student Loans – Schedule of Reduction (SOR)
Federal student loans for students enrolled less than full-time are subject to Schedule of Reduction (SOR) requirements. This means that federal student loan amounts may be reduced based on a student’s actual enrollment level.
At the 色花堂, full-time enrollment is defined as:
- Undergraduate: 12 or more credit hours per term
- Graduate: 9 or more credit hours per term during the Fall and Spring semesters, or 6 or more credit hours during the Summer term.
- Certain graduate students who are completing thesis or dissertation requirements may qualify as full-time with fewer credit hours depending on their program and eligibility.
Schedule of Reduction (SOR) requirements apply to all Subsidized and Unsubsidized Federal Direct loans, and Graduate PLUS loans offered under legacy provisions. Students must still be enrolled at least half-time to receive a federal direct loan.
Important Information:
- Students enrolled less than full-time may have their federal student loan reduced based on their enrollment level.
- Post-disbursement drops and withdrawals will affect current term loan disbursements.
- If a student withdraws from one or more courses after their federal student loan has been disbursed, their loan eligibility may be recalculated based on their new enrollment level.
- A reduction in loan eligibility may result in the student being required to return a portion of loan funds already disbursed, which could create a balance owed to UCF.
- Students must meet all general eligibility requirements in order to be offered aid.
Loan FAQs
Planning ahead is essential to managing debt. If you plan to borrow each year you are in school, estimate the total amount you will borrow. Then use the to estimate how much federal student aid the student may be eligible to receive. Then decide how much to borrow, you can use the criteria lenders use when they consider an applicant鈥檚 ability to repay.
The total monthly payment for all debts should not exceed 8% of your gross monthly salary.
For answers about consolidation, please visit .
You may also call 1-800-557-7392 to speak to a representative about loan consolidation.
A change in career goals, the loss of a job, or other unexpected changes in your situation could make repaying your loan more difficult than you expected. In some cases, and at the lender鈥檚 option, you may be permitted to temporarily stop making your payments, or your lender may accept smaller payments than scheduled. This is called a forbearance. In addition, for some loans, you may defer repayments temporarily which may help. The promissory note outlines the specific terms under which you may be granted a deferment. Contact your loan servicer if you think you may need to make arrangements. To view your servicer鈥檚 contact information, please visit visit .
The Federal Government sets the interest rate July 1st of each year.
The interest rates are the same for Stafford Loans in the Federal Direct Loan Program and FFELP, but the Direct Loan Program offers lower interest rates in the PLUS and Grad PLUS programs.
For interest rates, please refer to the聽 website and the Loan Comparison Chart.
Visit to view which company is currently servicing your loans and their contact information.
Not paying back your student loan can have serious consequences. If you go into default your lender can require you to repay the entire amount immediately, including all interest plus collection and late payment charges. The lender can sue you and can ask the federal government for help in collecting from you. The Internal Revenue Service may withhold your income tax refund and apply it toward your loan. You cannot receive any additional federal student aid until you make satisfactory arrangements to repay your loan. Your grades and official transcripts will be held until you resolve the default status. Also, the lender may notify credit bureaus of your default. This may affect your credit rating which will make it difficult to obtain credit cards and car loans in the future.
How to View Your Loan History
is the U.S. Department of Education鈥檚 secure central database for student aid, where students can view:
- Federal student loan history
- Summary of Disbursed Federal Student Loans
- Total amount borrowed
- Contact Information of Lenders and Loan Servicers
It is the student鈥檚 responsibility to keep track of all federal student loans borrowed using , including Federal Stafford, Perkins, PLUS and Grad PLUS loans. Optional/Private loan history is not stored on .
In order to log on to the website, students will need to provide the Social Security number (SSN), the first two letters of the last name, the date of birth, and the PIN. Students who do not remember their PIN may request a duplicate from the official PIN site.