INFORMATION REGARDING YOUR STUDENT LOANS
What is a Federal Direct Loan?
The Federal Direct Loan Program is a cooperative effort between the federal government and educational institutions:
1) The federal government provides the loan funds, 2) Schools determine the loan amount and interest subsidy, confirm eligibility, and determine the loan period.
• Direct Loan provides funds to help you meet your educational expenses. However, unlike gift aid, loans must be repaid.
• Federal Direct Loans are offered in two forms: subsidized and unsubsidized.
Subsidized: You will not be charged any interest while you are in school (as long as you remain at least a half-time student). The federal government
“Subsidizes” the interest during this period. Students receiving a subsidized loan first disbursed after July 1, 2012 and before July 1, 2014
will be responsible for the interest that accrues on the loan during the six month grace period. Only available to undergraduate students who
qualify.
Unsubsidized: You are responsible for your interest. Your interest accrues within sixty (60) days disbursement and may either be paid while you are in school or
capitalized and added to the principal amount borrowed. As with subsidized loans, principal repayment begins six months after enrollment in an
educational institution ceases.
How Much Can I Borrow?
• Your total financial aid, including Federal Direct Loans, can never exceed the college’s cost of attendance. The limits indicated are the federal maximums which
you can receive during two terms of enrollment.
• The maximum loan amount for one semester cannot exceed half of the academic year loan limit.
• In addition to annual loan limits, there are aggregate loan limits. Students may never borrow more than the aggregate loan limit for all subsidized and
unsubsidized loans at the college and other schools.
ACADEMIC YEAR LOAN LIMITS
Extended Loan
Unsub only*
* available to independent students
How much are monthly payments and do I need to borrow the maximum amount?
$ 5,000
10,000
30,000
50,000
100,000
$ 61.00
123.00
368.00
613.00
1,227.00
If you do not need to borrow the maximum amount, you can choose to borrow less. In deciding the appropriate amount, you should follow these steps:
• What are your costs for an academic year? Add costs together for tuition/fees, room and board, books and supplies, transportation and personal expenses.
• Subtract your resources from these costs. Consider all aid and private scholarships you have received as well as money from savings and your family.
• Decide if you need to borrow. Before you borrow funds, are there other resources available to you? Review your expenses to see if you can reduce costs.
• Consult the repayment chart above. What will be the monthly payment if you borrow this amount? Consider what you may borrow in the future.
• Select the amount that you can manage to repay. What you borrow today must be repaid, with interest, in the future.
Remember to be as conservative as possible when borrowing funds.
What happens if I transfer to another college?
• Students transferring to another college must add that school to their FAFSA.
• Financial aid does not automatically transfer from one school to another.
• Students may be required to return any cancelled funds that have already been paid to the school.
• Your school will not cancel funds that have already been paid into the student's account unless the student agrees to immediately repay the cancelled funds.
• Transferring to another college will cancel all future disbursements to this school. Your eligibility for aid will be reviewed if/when you decide to return.
What happens if I withdraw, drop below half-time or graduate?
Students must complete Exit Counseling at www.studentloans.gov.
