2020-2021 Federal Direct Loan Certification Form
This form is to be completed and signed by the student borrower only.
Name: ___________________________________________ ID #: _________________________
Street Address: ____________________ City: ___________ State: ____ Zip:
Email: _____________________________________ Cell Phone: ___________________________
Please follow these steps:
1. Review Borrowing Federal Direct Loans FAQs (enclosed).
2. Refer to your award letter or Awards by Semester in SHUAwards for loan eligibility.
3. Ensure you accept, reduce, or decline your awards in SHUAwards under Accept Awards to match the
amount you indicate on this form.
4. Write the total amount you want to borrow below and check the semesters for disbursement
installments:
Requested Annual Loan Amount $ _____________
Fall Spring Summer
Note: All first-time Direct Loan borrowers must complete the Subsidized/Unsubsidized Loan MPN and
Entrance Counseling online at studentaid.gov. Currently, Direct Loans have a fixed interest rate of 4.53% for
undergraduates and 6.08% for graduate students. After July 1, 2020, interest rates are TBD. Please review
studentaid.gov for interest rate updates. There is an origination fee of 1.059% for all Direct Loans. After
October 1, 2020, the origination fee is TBD. You must be enrolled at least half-time for loan disbursement.
5. Sign below to indicate that you have read, understood, and agree to the Direct Loan borrowing
requirements and responsibilities according to federal guidelines.
Student's Signature: __________________________________________________ Date: _________________
Typed or e-signatures are not acceptable.
Submit this form to the Office of Student Financial Assistance via regular mail, secure fax, SHUAwards upload, or in person as it
contains personally identifiable information.
5151 Park Avenue, Fairfield, CT 06825 203-371-7980 (phone) 203-365-7608 (secure fax)
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Borrowing Federal Direct LoansFrequently Asked Questions
How much should I borrow?
If you plan to borrow student loans, it is recommended that you borrow conservatively. You are not required
to borrow the entire amount offered. Only borrow what you need. Refer to your award notification or view
SHUAwards for your eligible loan amount. You are also advised to review your Financial Aid Disclosure in
SHUAwards. You may only use your loan to pay for education-related expenses. Direct Loan borrowers are
restricted to annual loan limits per academic year as well as aggregate lifetime loan limits for undergraduate
and graduate study. You can review your Student Account online to determine your semester billed tuition
and fee costs. Need help planning for the academic year? Contact us!
What are the interest rates and fees?
Direct Subsidized and Unsubsidized loans have a 4.53% interest rate for undergraduates. For graduate
students, Direct Unsubsidized loans have a 6.08% interest rate. Interest rates after 7/1/2020 are TBD. Both
loan types have an origination fee of 1.059%, which is deducted from each loan disbursement. After
10/1/2020, the origination fee is TBD.
What is the difference between Subsidized and Unsubsidized Direct Loans?
Direct Subsidized Loans are only available to undergraduate students with financial need. The Department of
Education pays the interest on a subsidized loan while you are enrolled at least half-time, during your grace
period, and during periods of loan deferment. Direct Unsubsidized Loans are not need-based and are available
to both undergraduate and graduate students. Direct Unsubsidized Loans accrue interest from the date of
disbursement. If you do not pay the interest while you are enrolled in school or during your grace period,
accrued interest will be added to your loan’s principal.
What actions need to be completed for loan processing?
To finalize your loan for processing, you need to certify your loan amount on the Direct Loan Certification
form. Additionally, if you are a first-time Direct Loan borrower, you must complete a Subsidized/Unsubsidized
Loan MPN and Entrance Counseling online at studentaid.gov. Review SHUAwards for any outstanding
documentation. You will receive periodic emails if financial aid forms are missing or incomplete.
How and when will my loan disburse?
Direct Loans are typically divided into equal disbursements for each semester. You may review SHUAwards for
the semester installment amounts of your loans. After the start of your classes (typically after the add/drop
period), your loans will post to your Student Account. To be eligible for federal loan disbursement, you must
initiate attendance, be enrolled at least half-time, and be meeting satisfactory academic progress. At least
half-time is defined as 6 or more credits for undergraduate students and 3 or more credits for graduate
students. All outstanding financial aid requests related to eligibility must be received as indicated in
SHUAwards. When your loans disburse, you will receive a disbursement notification from the Office of Student
Accounts, so it is important to stay connected and keep your contact information current.
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When will I receive my financial aid refund?
If your federal aid exceeds your billed charges for the term, you will receive a refund of your credit balance
within 14 days of aid disbursement. For more information, refer to the Student Accounts Credit Balance
Processing webpage. Alternatively, you may elect to have the credit held for future academic year charges.
How do I modify, cancel, or return a portion of my loan?
To increase a loan amount, you may submit an additional Direct Loan Certification form. You may also request
a modification, cancellation, or a loan decrease to a future term by emailing SFA@sacredheart.edu from your
Sacred Heart email account. For returns back to the lender, please send your written request to either SFA or
to the Office of Student Accounts within 120 days of your disbursement date.
What happens to my loan if I add, drop, or withdraw from classes?
Changes in your enrollment status may impact your financial aid. If you drop below half-time enrollment, you
may be ineligible for federal loan disbursement. It is important to keep your Financial Aid Counselor informed
so that you can be advised concerning any changes to your aid eligibility. Before you make any decisions
about dropping or withdrawing, please read our Financial Assistance Withdrawal Policy and go over the
changes with your Financial Aid Counselor. Failed attendance (unofficial withdrawals) and official course
withdrawals affect your satisfactory academic progress, which may also impact your aid eligibility.
What happens if I graduate or stop attending?
When you graduate or cease at least half-time enrollment, you will complete Exit Counseling, during which
you will receive important information regarding repayment of your Direct Loans. Our Registrar will report
your enrollment change to your loan servicer. Direct Subsidized and Unsubsidized loans have a 180-day grace
period before repayment. During this grace period, you are not required to make payments though interest
will continue to accrue.
When do my Direct Loans need to be repaid?
For Direct Subsidized and Unsubsidized loans, your repayment date will be directly after your 180-day grace
period, which is after you graduate, withdraw, or cease half-time enrollment.
How do I repay my loans?
After your loans disburse, you will be assigned a federal loan servicer who will manage the repayment of your
student loans. Direct loan borrowers are automatically assigned to the 10-year standard repayment plan.
However, there are several repayment plans available to Direct Loan borrowers. You may contact your loan
servicer for information on the different repayment strategies and request an alternate repayment option.
Where can I find out how much I have borrowed?
Please visit the National Student Loan Data System and log in with your FSA ID. This website will display your
loan history for federal student loans. Private loans are not included.
Who do I contact with loan questions?
We are here to help! Contact Student Financial Assistance via email at sfa@sacredheart.edu or by phone at
203-371-7980. For specific information about your loan repayment, reach out to your federal loan servicer.