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Federal Loans

There are four different kinds of Federal Loans available to students: Stafford Direct Loan, Parent PLUS Loan, Graduate PLUS Loan, and Perkins Loan. Below you will find more information on the Stafford Direct Loan. More information on the other loans can be found in the menu to the left.

 
STAFFORD DIRECT LOAN

The Stafford Direct Loan is a federally funded program.  Loan eligibility is determined by the Financial Aid Office with guidance from the Department of Education.  These funds must be repaid and can be used only for school-related expenses such as tuition, fees, books, supplies, and room and board.  The student must have a complete financial aid file, a signed Master Promissory Note, and the entrance counseling finished before loans are disbursed.

 

Students who are ready to borrow the Stafford Direct Loan should follow these instructions:

Step 1: Student makes a decision on their Loans on www.otis.edu/selfservice

Step 2: Log into www.studentloans.gov for new Direct Loan borrowers only

Click on:

  • "Complete Entrance Couseling".
  • "Complete Master Promissory Note" .

 

Students are highly encouraged to use the loan calculator to estimate their monthly payments on their student loans.

The fixed interest rate for the Undergraduate Subsidized and Unsubsidized Direct Loan is 4.66% with a 1.072% fee.

The fixed interest rate for the Graduate Unsubsidized Direct Loan is 6.21% with a 1.072% fee.

Repayment begins following a six-month grace period after the student leaves school or drops below half-time enrollment. Generally, a student has standard 10 years to repay the loan in monthly payments. Other repayment terms are available from the Department of Education.  The student must repay the total amount of the loan, including the loan fees. There is no prepayment penalty.

The subsidized loan interest is subsidized by the federal government while the student is in school at least half-time.  Starting July 1, 2013 the Department of Education restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student’s current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student’s outstanding subsidized loan.

The unsubsidized loan interest starts to accrue when the loan funds are disbursed.  The student has the option to pay the interest while in school, otherwise the interest is combined with the principal at the time of repayment.  Funds are disbursed per semester.

 Acedemic Levels

 Dependent Undergraduate

 Independent Undergraduate*

 Graduate Students**

 1st Year

 $3,500 sub

 $2,000 unsub

 $3,500 sub

 $6,000 unsub

$20,500 unsub

 2nd Year

 $4,500 sub

 $2,000 unsub

 $4,500 sub

 $6,000 unsub

$20,500 unsub

 3rd Year

 $5,500 sub

 $2,000 unsub

 $5,500 sub

 $7,000 unsub

 

 4th Year

 $5,500 sub

 $2,000 unsub

 $5,500 sub

 $7,000 unsub

 

* Students whose parents were not eligble for a parent PLUS loan will be offered Unsubsidized Stafford in the amounts on the independent students' chart.
** Graduate Graphic Design students are under a different loan structure.  Please contact  Financial Aid for details. 

The Stafford Aggregate Loan Limits are as follows:

Undergraduate Dependent Students

$31,000 (max $23,000 subsidized)

Independent Students (and dependent students whose parents cannot borrow PLUS)

$57,500 (max $23,000 subsidized)

Graduate Students beginning 2012 all loan disbursement are unsubsidized.

$138,500

 

Student who drop below half time are required to complete an exit counseling at www.studentloans.gov.