Student Loans

Loans are funds that you have to pay back, usually after you graduate.  Student loan assistance from one or more programs may be included as part of a financial aid award.

Federal Direct Student Loans

Students who are U.S. citizens or permanent residents and have filed a Free Application for Federal Student Aid (FAFSA) are eligible, including those who do not qualify for need-based aid.  Students who do not qualify for need-based aid are ineligible for the interest subsidy from the federal government. Borrowers of unsubsidized Direct Loans can either pay the interest quarterly or choose to have the interest accrue while they are enrolled in college.

Federal Direct Student Loan Maximum Annual Amounts

Student Grade Level Subsidized Unsubsidized
1st Year $3,500 $2,000
2nd Year $4,500 $2,000
3rd Year $5,500 $2000
4th Year and above $5,500 $2000
Maximum undergraduate Aggregate Limit $23,000 $8,000

Interest Rate/Loan Fees

The interest rate for subsidized Direct Loans is fixed at 4.66% for loans disbursed between July 1, 2014, and June 30, 2015. If a student qualifies for the in-school subsidy, the federal government pays the interest on the loan while the student is enrolled. The interest rate on unsubsidized Direct Loans is also 4.66%, with the borrower responsible for paying any accrued interest. An origination fee of 1.073% of the principal loan amount is deducted from each disbursement before it is credited to the student account.

Direct Student Loan Application Process

Students typically apply for Direct Loans during the summer and must complete the following steps in order to obtain a loan:

  1. File a FAFSA so that eligibility for any subsidized loan amount can be established.
  2. Provide copies of student and parent 2013 federal tax returns and W-2 forms to Student Financial Services.
  3. Complete a Federal Direct Student Loan Authorization Form (PDF)
  4. First-time borrowers must complete an Electronic Master Promissory Note (eMPN) at
  5. First-time borrowers must complete loan entrance counseling at

Direct Loan Repayment

Repayment of Direct Loans begins six months after the student graduates or otherwise ceases enrollment. The standard repayment term is 10 years, and alternate terms such as extended repayment, graduated repayment and income-contingent repayment are also available. Information about loan repayment plans (with sample repayment calculators) is available at

Federal Perkins Loan

Federal Perkins Loans have a fixed interest rate of 5%, with no interest accruing while borrowers are enrolled at Bates. Students have a nine-month grace period from graduation to repayment, and loans are repaid over a 10-year period. Because funds are limited, Student Financial Services determines who is eligible for this type of loan, and the amount that can be awarded. Students who are awarded this type of loan must complete a Perkins Master Promissory Note and receive entrance counseling. Students are contacted by email about completing necessary paperwork.

Next: Parent Loans