If you’re a student from the United States, you may be eligible for federal Direct Loans offered under the Title IV Federal Student Aid Programs.

Direct Subsidised Loan

This federally subsidised, low-interest loan is for undergraduate and graduate students with demonstrated financial need (financial need means the difference between your Cost of Attendance and the ability of you and your parents to pay this cost as indicated by your Student Aid Index).

No interest is charged:

• while you’re enrolled at least half-time at university
• during an authorised loan deferment period
• for the six-month grace period after you graduate, discontinue your course or drop below half-time enrolment.

Loan repayments start six months after you:

• graduate
• discontinue your course or
• drop below half-time enrolment.

Direct Unsubsidised Loan

This unsubsidised, low-interest loan is for undergraduate and graduate students. It isn’t based on financial need.

Interest accrues on a Direct Unsubsidised Loan from the time it’s disbursed. You can choose to pay the interest while studying or allow it to accumulate until your loan repayments start, which may increase your monthly repayment amounts.

Loan repayments start six months after you:

• graduate
• discontinue your course or
• drop below half-time enrolment.

Direct PLUS Loan

This unsubsidised loan is for graduate students and parents of dependent undergraduate students. Borrowers must pass a credit check.

This loan can help pay for your educational expenses (up to the Cost of Attendance) minus all other financial aid.

Interest accrues on a Direct PLUS Loan from the time it’s disbursed. You can choose to pay the interest while studying or allow it to accumulate until your loan repayments start, which may increase your monthly repayment amounts.

Loan repayments start six months after you:

• graduate
• discontinue your course or
• drop below half-time enrolment.

We strongly encourage graduate students to apply for a Direct Unsubsidised Loan before applying for a Direct PLUS Loan.

Interest rates and fees

Interest is the fee charged by a lender in exchange for lending you money. The interest rate, usually a percentage of the loan amount, may stay the same for the term of the loan (fixed rate) or it may change periodically (variable rate). Federal government loans made since 1 July 2006 only have fixed interest rates.

Your student loans will be charged interest rates and fees.

Accrued interest

If you choose not to make interest payments for a Direct Unsubsidised Loan or Direct Plus Loan while at university, during your grace period or during an authorised loan deferment period, this interest will accumulate and add to your repayment amounts.

US Department of Education grants

As foreign schools don’t participate in the US Department of Education’s grant programs, you won’t be able to receive the following grants when enrolling at Monash:

• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Federal Pell Grant
• TEACH Grant.