• Direct Subsidized Loans

    • Subsidized Direct Loans are need based loans.
    • Eligibility is determined by results of the FAFSA.
    • The federal government pays the interest while you are in school.
    • Scholarships and grants received may result in a change in the loan eligibility amount shown on your award letter from subsidized to unsubsidized.
  • Direct Unsubsidized Loans

    • Unsubsidized Direct Loans are non need-based loans.
    • The FAFSA must be completed in order to borrow this loan, but the expected family contribution does not impact eligibility.
    • Interest accrues from the date of disbursement and throughout the entire life of the loan.
    • Borrowers are not required to make payments on the interest while in school, but any payment towards accrued interest will reduce the overall debt amount – saving the student money in the end.
  • Loan Limits

    The Direct Subsidized and Unsubsidized loan programs limit the amount a student may borrow each year based on the student’s grade classification and dependency status.

    The annual loan limits for undergraduate dependent students are:

    LoanLimits

    The annual loan limits for undergraduate independent students are:

    Ind.LoanLimits

  • Interest, Fees & Additional Information

    • Interest Rates for 2017-2018: 4.45%
    • Origination Fees:
      1.069% (disbursed after October 1, 2016 and before October 1, 2017)
      1.066% (disbursed after October 1, 2017 and before October 1, 2018)
      Fees are deducted from each disbursement:
      For example, on a $5500 loan, $59 is subtracted resulting in a net disbursement of $5441.
    • Graduate Students are eligible for unsubsidized loans only.
      The interest rate for graduate student loans is 6%
    • Half of your loan is disbursed each semester. Funds are paid to your account as they are received. 
    • The Standard Repayment Plan is the basic plan with a 10 year repayment and a $50 minimum monthly payment.
      The monthly payment of a $10,000 loan is approximately $115 per month.
  • Loan Forgiveness

    • TEACHER LOAN FORGIVENESS
    •  $5,000 loan forgiveness
      • Five years full-time teaching in an eligible elementary or secondary school
    • $17,500 loan forgiveness
      • Five years full-time teaching secondary mathematics or science in an eligible school or five years full-time teaching special education in an eligible school
    • Check to see if your school is on the list
    • Detailed information on the Student Aid website
    • PUBLIC SERVICE LOAN FORGIVENESS
    • Remaining balance of the loan forgiven after 120 qualifying monthly payments
    • Full-time employment with a non-profit organization
    • Loan is in a qualifying repayment plan: income-driven payment plans, standard repayment
    • Cannot include time preaching (to congregation or classroom)
    • Detailed information on the Student Aid website

Requesting a Direct Loan

Once you’ve received your Award Package, you will decide if you need to borrow funds to pay for college.

FIRST TIME Direct Loan Borrowers:

  • 1. Entrance Counseling

    First time borrowers must complete Direct Loan entrance counseling before receiving loan funds.
    This process is done electronically on the Student Loans website.

    You will need your Federal Student Aid Username/Password (formerly referred to as your FAFSA Pin).
    If you don’t have your Username, you can retrieve it by going to the Federal Student Aid site.

  • 2. Complete the Master Promissory Note (MPN)

    First time borrowers must complete the MPN before receiving loan funds.
    This process is done electronically on the Student Loans website.

    You will need your Federal Student Aid Username/Password (formerly referred to as your FAFSA Pin).
    If you don’t have your Username, you can retrieve it by going to the Federal Student Aid site.

    You can complete your application faster if you have the following information ready:
    *Driver’s license number
    *Names and complete addresses for two people you will use as personal references
    One reference should be a parent or guardian (if living). References cannot have the same address.

  • 3. Complete and Submit the Direct Loan Request Form

    All students who plan to borrow a Federal Direct loan for 2016-17 must submit the Loan Request Form. You may download and print it here: Direct Loan Request Form.

REPEAT Direct Loan Borrowers:

  • 1. Complete and Submit the Direct Loan Request Form

    All students who plan to borrow a Federal Direct loan for 2016-17 must submit the Loan Request Form. You may download and print it here: Direct Loan Request Form.