Need to complete your Federal Direct Student Loan Master Promissory Note?

MPN

Need to complete your Federal Direct Loan Entrance and Exit Counseling requirement?

Entrance/Exit

• Eligibility
• Loan Limits
• Promissory Note
• Entrance Counseling
• Disbursements
• Borrower’s Responsibilities - Repayment
• Eligibility Chart

ELIGIBILITY

Eligible students filing the Free Application for Federal Student Aid (FAFSA) will be considered for a William D. Ford Federal Direct Student Loan. The U.S. Department of Education is the lender. Upon verification of eligibility, completion of a Master Promissory Note and Entrance Counseling (if you are a first-time borrower), the loan funds will be credited to your student Bursar account.

You may receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or both for the same academic year. The type of loan you receive is based on your financial need as determined under federal regulations. Need is not a factor in determining eligibility for an unsubsidized loan. With a Direct Subsidized Loan, the interest is paid by the federal government while you are attending school at least half-time or during grace or deferment periods. With a Direct Unsubsidized Loan, interest begins to accumulate on the day the loan is disbursed to your student Bursar account and continues until the loan is paid in full. Your repayment of the interest can be deferred while you are in school and attending at least half-time. All students will find their Direct Loan eligibility on their Financial Aid Award Notice.

The interest rate on both loans is fixed at the time the loan disburses. Currently, the maximum rate will not exceed 8.25 percent. New loan interest rates for subsequent years are adjusted once a year on July 1. To obtain current interest rates click here.

For 2009-10, the loan fee charged for a Direct Subsidized and Direct Unsubsidized Loan is 1.5 percent of the amount borrowed. There is a 1.0 percent rebate being offered to all borrowers. To keep the rebate, you must make your first twelve (12) required monthly payments on time when your loan enters repayment.

You must be enrolled at least six credit hours each term of the loan period to be eligible to receive a William D. Ford Federal Direct Student Loan.

The amount you can borrow each year for Direct Subsidized and Direct Unsubsidized Loans depends on whether you are a dependent student or an independent student. The amount you can borrow may also be limited by other factors such as other financial aid you may receive. The loans are for educational purposes and can never exceed the cost of your attendance (determined by the Office of Student Financial Assistance) less any other aid.

Loan Limits for the Dependent Student

1st year undergraduate (0-29 hours) $5,500 (only $3,500 may be in subsidized loans)
2nd year undergraduate (30-63 hours) $6,500 (only $4,500 may be in subsidized loans)
3rd/4th year undergraduate (64 and above) $7,500 (only $5,500 may be in subsidized loans)

Students pursuing an Associate Degree:
1st year undergraduate (0-29 hours) $5,500 (only $3,500 may be in subsidized loans)
2nd year undergraduate (30-63 hours) $6,500 (only $4,500 may be in subsidized loans)

1st year undergraduate (0-29 hours) $9,500 (only $3,500 may be in subsidized loans)
2nd year undergraduate (30-63 hours) $10,500 (only $4,500 may be in subsidized loans)
3rd/4th year undergraduate (64 and above) $12,500 (only $5,500 may be in subsidized loans)

Students pursuing an Associate Degree:
1st year undergraduate (0-29 hours) $9,500 (only $3,500 may be in subsidized loans)
2nd year undergraduate (30-63 hours) $10,500 (only $4,500 may be in subsidized loans)

Graduate/professional $20,500 (only $8,500 may be in subsidized loans)

AGGREGATE LOAN LIMITS

Maximum total debt aggregate limit for a dependent (undergraduate) student is $31,000 (only $23,000 in subsidized loans).

Maximum total debt aggregate limit for an independent (undergraduate) student is $57,500 (only $23,000 in subsidized loans).

Maximum total debt aggregate limit for a graduate or professional student is $138,500 (including undergraduate study and only $65,500 may be in subsidized loans).

PROMISSORY NOTE

In order for loan funds to disburse to your account, you must complete a Federal Direct Loan Master Promissory Note (MPN). You can complete an electronic promissory note (eMPN) online at http://dlenote.ed.gov. You will need to use your U.S. Department of Education's Personal Identification Number (PIN) to complete your (eMPN). This is the same PIN that you used to complete your Free Application for Federal Student Aid (FAFSA) online. If you did not complete your FAFSA online, or do not have a PIN, or have misplaced your PIN, please visit the U.S. Department of Education’s website at www.pin.ed.gov.

ENTRANCE COUNSELING

If you are a first-year borrower with the William D. Ford Federal Direct Loan program, you will need to complete entrance counseling. You may complete online entrance counseling at www.dl.ed.gov. To complete entrance counseling you will need to use your U. S. Department of Education’s Personal Identification Number (PIN) or your name, social security number, and date of birth. Entrance counseling must be completed before your loan will disburse to your account.

Your PIN number is the same number you used to complete your Free Application for Federal Student Aid (FAFSA) online. If you did not complete a FAFSA online, or do not have a PIN, or have misplaced your PIN, please visit the U.S. Department of Education’s website at www.pin.ed.gov.

DISBURSEMENTS

Your loans must be accepted and all requirements completed prior to loan disbursements. You can accept your loan and also view outstanding requirements by accessing BannerWeb.

In accordance with federal student aid regulations, Federal Direct Loan disbursements may occur as early as ten days prior to the beginning of the semester if all requirements are met.

Changing your loan amounts

Although your signature on the eMPN allows us to make multiple loans to you under a single promissory note, you are not required to accept the loan amount that we award you.

You should notify us immediately in writing if you want to borrow a lesser amount than what was awarded. In addition, you may cancel all or a portion of your loan(s) after the funds have been credited to your student Bursar account by notifying us in writing within 30 days after the date of the disbursement notice.

BORROWER’S RESPONSIBILITIES

You are required to begin making payments on your Federal Direct Loans after you graduate, leave school, or drop below half-time enrollment. Plan ahead for repayment and budget wisely. You have a grace period of six months before you must begin repayment. The Federal Direct Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. The Federal Direct Loan Program allows you to choose which repayment plan is best for you. Federal Direct Loan borrowers may choose between the standard, extended, graduated, or income contingent repayment plans. Repayment of your loans is managed by the Direct Loan Servicing Center. You may contact the Direct Loan Servicing Center for additional repayment information at 1-800-848-0979 or http://www.dl.ed.gov.

To estimate an amount of repayment based on the standard, extended, graduated, or contingent repayment plans you may access the Direct Loan's interactive repayment calculator website at www.ed.gov/offices/osfap/directloan/calc.html. Calculations are estimates and the values may not reflect the actual amount computed by the Direct Loan Service Center.

If You Already Have a Student Loan........

• If you have a Personal Identification Number (PIN), and your loan was made through the Direct Loan Program, you can get the most recent account information from the Direct Loan Servicing online website at http://www.dl.ed.gov.

• If you ever have a problem making your monthly loan payments, you may be able to postpone your payments through a deferment or forbearance request. Deferments are also an option if you are returning to school after an absence. You may also be eligible to have your Direct Loan or Perkins Loan forgiven.

• If you have exhausted your deferment and forbearance options, and/or want to avoid a default, you may also want to consider consolidating your loans. A Direct Consolidation Loan allows you to combine one or more of your federal education loans into a new loan that offers several advantages. For frequently asked questions regarding consolidation, click here.
  

ELIGIBILITY CHART