Denver Seminary

The following excerpt is taken from IFAP.ed.gov

Sequestration does not change the annual or aggregate loan limits for  Direct Loan Program loans, or the rules governing a student’s (or parent’s) Direct Loan eligibility.  However, the BBEDCA did specify that certain loan fees paid by borrowers be increased during the time the sequester is in effect, as follows:

• For Direct Unsubsidized Loans where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 1 percent of the principal amount of a loan will increase. We presently anticipate that the rate will increase to approximately 1.05 percent. With such an increase, for example, the fee on a loan for $5,500 would increase from $55.00 to $57.75, an increase of $2.75.  We will provide the actual increased percentage when it becomes available.

• For Direct PLUS Loans for both parent and graduate and professional student borrowers where the first disbursement of the loan is after the sequester takes effect, the current loan fee of 4 percent will increase. We presently anticipate that the rate will increase to approximately 4.20 percent. With such an increase, for example, the fee on a $10,000 Direct PLUS loan would increase from $400.00 to $420.00, an increase of $20.00. We will provide the actual increased percentage when it becomes available.