Federal Loan

Federal Subsidized Direct Loans

Eligibility Requirements:

• meet the Eligibility Requirements for Federal Student Aid
• submit a FAFSA
• demonstrate financial need
• enroll as a degree-seeking undergraduate student

Enrollment Requirements:

Undergraduate students must enroll for at least 6 credits for each semester that you want to receive the loan.

Processing Fees:

The Department of Education is authorized to charge the borrower origination and guarantee fees. For loans disbursed before October 1, 2016 – the origination fee will be 1.068%. For loans disbursed on or after October 1, 2016 – the origination fee will be 1.069%. The current guarantee fee is ZERO. Fees are deducted from each semester’s disbursement.

Interest Rate:

The Federal Subsidized Direct loan will have a 4.45% fixed interest rate.

Repayment Terms:

Direct Loan repayment begins 6 months after you cease to be enrolled at least half-time. The Standard Repayment Period is 10 years but you may change your repayment plan with your Direct Loan Servicer if necessary.

Borrowing Limits:

See Direct Loan Borrowing Limits.

Accepting:

• On your Award Notification, you must indicate the amount of the loan(s) you want to borrow.
• We will transmit your loan request information to the Department of Education.
• You must complete the Direct Loan Master Promissory Note (MPN) and Entrance Counseling with the Department of Education.