US federal government loans

If you are a student from the USA, you may be eligible for loans offered under the Federal Direct Loans Program.

Eligibility

To be eligible for any of the loans listed, you must be:

  • a US citizen or eligible non-citizen
  • enrolled at least half time in a degree program at Monash University
  • making satisfactory academic progress
  • not in default or owing a repayment on a grant or loan.

Subsidised Direct Loan

This loan is for undergraduate students with demonstrated financial need as determined by the federal regulations. No interest is charged:

  • while you are enrolled at least half-time in university
  • during an authorised deferment period
  • for the six-month grace period after you leave university or drop below a half time enrolment.

Loan repayments start when after one of the following:

  • six months after you graduate
  • when you leave university
  • if you drop below half-time enrolment.

Unsubsidised Direct Loan

This loan is not based on financial need and interest accrues on the loan from the time the loan is paid out. You can choose to pay the interest while studying or you can allow it to accumulate until your loan repayments start when one of the following happens:

  • six months after you graduate
  • when you leave university
  • if you drop below half-time enrolment.

Allowing the interest to accumulate adds to your loan amount and may increase your monthly repayments.

PLUS (Unsubsidised loans for parents of dependent students and for graduate/professional students)

This loan can help pay for educational expenses up to the cost of attendance, minus all other financial assistance. You are required to pass a credit check. Interest accrues on the loan from the time the loan is paid out.

Graduate students are strongly encouraged to apply for Unsubsidised Direct Loans before applying for a PLUS.

Current interest rates

New loans will have the following interest rates:

  • Subsidised Direct Loan (undergraduate students) – 4.5%
  • Unsubsidised Direct Loan – 6.8%
  • PLUS – 7.9%.
 Max subsidised
amount in (USD$)		Max combined subsidised and
unsubsidised amounts (USD$)
Dependent undergraduates
First year $3,500 $5,500
Second year $4,500 $6,500
Third year and up $5,500 $7,500
Independent undergraduates
First year $3,500 $9,500
Second year $4,500 $10,500
Third year and up $5,500 $12,500
Graduate/professional students
From 1 July 2012 $0 $20,500
Maximum total debt from Direct Loans when you graduate
  Max subsidised and unsubsidised amounts combined
Dependent undergraduates $31,000 (not more than $23,000 subsidised)
Independent undergraduates $57,500 (not more than $23,000 subsidised)
Graduate/professional students $138,500 (not more than $65,500 subsidised)
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