Federal Aid Programs

Law students eligible for federal aid may access two federal student loan programs:

• Federal Direct Unsubsidized Stafford Loan – preferred per lower fees & interest rate, and available without a credit application
• Federal Direct Graduate PLUS Loan

Federal Direct Loan funds are disbursed to student accounts via UConn’s Student Administration System.

Additional Federal Direct Loan requirements include:

• Acceptance of offered loan in the Student Administration System
• Completion of Entrance Counseling
  • Entrance Counseling reviews in detail the rights and responsibilities of borrowers
  • Select “University of Connecticut” when completing Entrance Counseling
• Completion of separate Master Promissory Notes (MPNs) for each loan type
  • MPNs are legal agreements in which borrowers promise to repay their loans
  • Select “University of Connecticut” when completing MPNs
• Enrollment in at least 6 credits each period/semester for which Federal Direct Loan is desired
• Accepted Origination Status
• For Grad PLUS Only: Complete a Federal Direct Grad PLUS application, including credit check with “no adverse credit history” status
  • Select “University of Connecticut” when completing a Grad PLUS application
  • Students who do not pass the credit check can appeal or apply with a credit-worthy endorser. Both alternatives are through the StudentLoans.gov site.

Differences between the Federal Direct Loan programs include:

Borrowing Limits – There are maximums per academic year as well as total borrowing limits by program.

Interest Rates – Money you need to repay in addition to the “gross” or original amount you agreed to borrow. These are subject to change each fiscal year.

Origination Fees – These are automatically deducted from the loan by the Department of Education before the proceeds are credited to student accounts, thus reducing disbursements to a smaller “net” amount. These fees are subject to change each October.

About Federal Direct Loan Repayment:

• Loans must be repaid.
  • Students may opt to pay interest on their loans while they are in school, thus lowering their total cost of borrowing.
• In-School Deferments: Federal Direct Loans do not need to be repaid while students are enrolled at least half-time (6 credits).
  • Technically, Grad PLUS loans enter into repayment when they are disbursed, but Grad PLUS borrowers can contact their loan servicer to apply for deferment while they are enrolled at least half-time.
• Grace Period: Students graduating or dropping below 6 credits have a single six-month grace period before needing to begin loan payments.
  • Students who have already had a 6-month grace period may enter into immediate repayment.
  • Grad PLUS borrowers should contact their loan servicer directly about deferment.
• Exit Counseling Requirement: Students graduating or dropping below half-time (6-credit) enrollment are required to complete online Exit Counseling to review their responsibilities and options.
  • The criteria for federal loan forgiveness are also covered in Exit Counseling.
• Repayment Options: Students have repayment options other than the Standard 10-year term. Alternatives include Graduated repayment, Extended term, and various Income-Driven repayment plans.
  • Eligibility and monthly payments for Income-Driven repayment plans is determined by application/recertification each year via StudentLoans.gov.
  • Some students choose to consolidate multiple federal loans into a Federal Direct Consolidation Loan.
  • Students having repayment difficulties are encouraged to contact their loan servicer as soon as possible to avoid adverse credit impact and default status. Deferment and forbearance options may be available.
  • Students seeking Public Service Loan Forgiveness (PSLF) should recertify employment eligibility annually via StudentLoans.gov.

There are pros and cons to each repayment option. Contact the Student Finance Office or review Resources for Loan Borrowers for additional information.

Federal Work-Study (FWS) is a federally-funded employment program for students with financial need. Work-study funds are limited and offered to eligible students based on a variety of factors including financial need and FAFSA filing date. Students should indicate interest in Work-Study on the FAFSA.

Important FWS Details:

• Both on-campus employment as well as select paid off-campus community service opportunities are available for students with FWS.
  • UConn Law’s Office of Student Employment assists students in obtaining employment and other matters, including pre-employment paperwork.
• Students are responsible for accepting Work-Study offered in the Student Administration System and must secure FWS employment by a deadline each year or forfeit the award.
• Federal Work-Study earnings are paid bi-weekly two weeks after the submission of timecards for hours worked.
• FWS earnings are not deducted from the fee bill, but paid via Direct Deposit or paper checks. Students may choose to save FWS earnings to help pay the following term’s charges, or they may use earnings to pay for current needs such as meals, transportation, supplies, etc.

The Office of Student Employment also assists student employees who work in a limited number of jobs in a separate Student Labor program, which does not require Federal Work-Study, a FAFSA application, or financial need.