Federal student loans are government-backed, or guaranteed. They are low-cost, fixed-rate loans that may be subsidized (based on need) or unsubsidized (not based on need). Subsidized loans begin to accrue (accumulate) interest when repayment begins (six months after you leave school or your attendance drops below half-time), while unsubsidized loans begin to accrue interest as soon as the loan is fully disbursed. Award amounts are based on grade year classifications and vary each year.
Students must be enrolled at least half-time to be eligible for a direct loan disbursement.
Half-time status at UMUC is defined differently depending on your program:
- Undergraduate (6 credits)
- Graduate (6 credits)
- MBA or Executive MBA (3 credits)
- Doctorate (3 credits)
- AMBA 600 is considered a half-time course
Initial awards are based on the assumption that you will be enrolled half-time; awards may be adjusted if you enroll for more or less credits.
Awards will be adjusted on the following schedule (to match your current enrollment):
- Fall Semester: September and December
- Winter Semester: March
- Spring Semester: February and May
- Summer Semester: June and August
Note: please contact our office if you add classes after the review dates listed above to determine if you are eligible for additional financial aid funds.
Types of Federal Loans
Repaying Your Student Loan
Repaying your student loan is not an obligation to be taken lightly. It could affect your future financial health. Understand your options and responsibilities.