Sanford School of Public Policy
Duke University

Loans - Frequently Asked Questions

Q: The website states that, for Graduate Plus loans, "Student is responsible for interest on loans while in school.”  Does this mean that I will be making payments on the interest while in school, or just that interest will be accruing?

A: It will accrue, or you can make payments;the choice is yours. You should try to pay the interest whenever possible, because when you don't make payments, the interest will capitalize and increase the principle of the loan.

Q: How and when are funds disbursed for costs of living? I understand how funds are disbursed to Duke for tuition and fees, but am unclear as to when I can expect disbursement of funds to cover rent and food, and how those disbursements work.

A: Loans are disbursed in two equal payments at the beginning of each semester, but not earlier than 10 days prior to the date classes start. The Bursar will issue a refund as soon as there is a credit on the account. You should ensure you have "direct deposit" with the Bursar's office in order to have the credit directly transferred to your bank account.

Q: How do I complete the direct deposit form with the Duke Bursar?

A: http://www.bursar.duke.edu/TuitionFees/Refunds and http://www.bursar.duke.edu/FormsPubs/#ddr.

Q: Do I need to complete separate forms for the Stafford, Perkins and other loan options?

A: You only need to complete the single form for all of the possible loan options.

Q: What can I expect from the various loans options?

A: If you are need-based eligible we will attempt to provide you loans, generally in the following order:

1. Subsidized Stafford Loan: Up to $8,500 (or the current Federal maximum).
2. Carl Perkins Loan: The amount varies depending on the School's share of the total Duke allocation; the funds are limited.  Perhaps $1,000 to $3,000.
3. Unsubsidized Stafford Loan: Up to $12,500 (or the current Federal maximum).
4. Graduate Plus Loan: The dollar amount varies.

Any tuition fellowship/scholarships as well as assistantships (TA/RA/GA positions) will be subtracted from these.

Q: What are LIBOR (London Interbank Offered Rate) and Prime?

A: They are both indexes. These are the two that are commonly used by lenders to structure the interest rate for an alternative student loan. The interest rates usually vary quarterly, which means that lenders would use the 3 month LIBOR. You may visit the following site to learn more about these indexes, here.