Low interest student loans are included in undergraduate financial aid offers from Middlebury.
Students who are eligible for federal financial aid will be offered a Direct Loan. A Middlebury College Loan may be offered to students who do not qualify for Federal Direct Loans.
Important Tip: If you have planned to pay your college costs in other ways, you may choose to decline all or part of your loan.
Federal Direct Loans
Direct Loans are federal student loans that must be repaid. Direct Loans are included in your financial aid offer for the maximum amount you are eligible to borrow. You may accept, reduce or decline your loan in BannerWeb.
Direct Loans are offered to students who complete the Free Application for Federal Student Aid and meet the eligibility requirements for federal student aid. The maximum annual amount students may borrow is based on their grade level as follows:
- First-Year: $5,500
- Second-Year: $6,500
- Third and Fourth-Year: $7,500
- Students who are considered independent based on their FAFSA or whose parent is denied a Federal PLUS loan are eligible for additional direct unsubsidized loans according to their grade level.
Interest and Fees
The interest rate for Direct Loans disbursed between July 1, 2022 and June 30, 2023 is fixed at 4.99%, with a fee of 1.057% deducted from the loan amount at disbursement. For more information, visit Federal Student Aid.
Direct Loan payments are deferred while the student is enrolled at least half-time. There is a one-time 6 month grace period after the student graduates, withdraws, or drops below half-time before loan payments begin. The loan offers multiple repayment plan options.
- Federal Direct Subsidized Loans: The federal government pays the interest on this loan while the student is enrolled at least half-time or during times of authorized deferment. Federal Subsidized Loans are offered to undergraduate students based on financial need and grade level.
- Federal Direct Unsubsidized Loans: Students are responsible for paying the interest that accumulates after the loan is disbursed. The interest can be paid while in school or the accrued interest will be capitalized (added to the principal balance). Federal Unsubsidized Loans are offered based on grade level, and financial need is not considered.
Requirements for Borrowers
- Accept, reduce or decline your loan in BannerWeb.
- First-time borrowers only: Complete both Entrance Counseling and Master Promissory Note (MPN).
Middlebury College Loan
The Middlebury College Loan is a loan from the College that must be repaid once you graduate or cease enrollment. You may accept, reduce or decline your loan in BannerWeb.
The loan is reserved for students who are determined by Middlebury to have financial need but do not qualify for need-based federal financial aid or are ineligible due to citizenship status or academic progress.
Interest and Fees
The interest rate for the loan is fixed at 5 percent and there are no loan fees. There is no interest while you are enrolled at least half-time and during the 9 month grace period.
No payments are due while you are enrolled at least half-time and there is a one-time 9 month grace period after the student graduates, withdraws, or drops below half-time before loan payments begin. The term of the loan is ten years or 120 equal monthly payments.