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.
YEARLY
LOAN LIMITS
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)
Loan Limits for the Independent Student
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
LOANS
Amount
Who is Eligible
How to Apply
Interest Rate and Repayment
Federal Perkins Loan
Typical Award is $1,500
US citizens or permanent residents
demonstrating financial need
Submit FAFSA by Feb 15.
5%-Begins 9 months after student
leaves school.
Federal Direct Subsidized
Loan
Max loan limits
are $5,500 for freshmen (only $3,500 may be in
subsidized loan), $6,500 for sophomores (only
$4,500 may be in subsidized loan), $7,500 thereafter
(only $5,500 may be in subsidized loan).
Independent students may be eligible
for $4-5,000 in additional loan funds.
US citizens or permanent residents
demonstrating financial need
Submit FAFSA
Fixed
rate - Begins 6 months after student leaves
school.
Federal Direct Unsubsidized
Loan
Students who have not received
the max Federal Direct Subsidized Loan. Independent
students may have additional eligibility.
Submit FAFSA
Fixed
rate - Begins 6 months after student leaves
school. Interest accrues while in school.
Federal Direct Plus Loan
Up to the cost of education less
aid received
Parents of dependent students
Submit FAFSA and loan application
Fixed
rate, Begins 60 days after entire loan is disbursed
or 6 months after student leaves school.
Federal Direct Graduate Plus Loan
(Grad Plus)
Up to the cost of education less
aid received
Graduate students
Submit FAFSA and loan application
Fixed
rate - Begins 60 days after entire loan is disbursed.
In-school deferment options are available.