Understanding Your Federal Direct Loan Award
Please Note: This is a loan that MUST be paid back.
General Loan Eligibility
Federal Loans are available to College of DuPage students who are enrolled
in at least six (6) credit hours (1000 level or above and/or approved remedial
courses) each term of the loan. You must also be enrolled in classes leading
to a U.S. Department of Education approved certificate or degree
amounts are based on your grade level at the College of DuPage, i.e.
freshman or sophomore, your program of study, and your dependency status
according to the Free Application for Federal Student Aid (FAFSA).
Students who receive their maximum Federal Loan eligibility during the
standard academic year, i.e. Fall and Spring terms, will not have any
remaining loan eligibility for the Summer term.
Students who receive a Federal Loan at another school during the same
academic year will have their loan awards prorated at the College of
DuPage. This may result in you not being eligible for the full loan award or
not being eligible at all for a loan at the College of DuPage.
All first time Federal Loan borrowers at the College of DuPage must
complete Entrance Counseling
prior to receiving their loan funds. Failure to
complete Entrance Counseling will prevent your loan from processing.
These are the maximum loan amounts you may borrow. The Office of
Student Financial Assistance has the responsibility to lower the amount of
loan requested if it is determined you are not eligible for the requested
The following table shows the maximum amount of money you may borrow
each academic year in Direct Subsidized and Unsubsidized Loans:
Freshman – under 30
credit hours earned
of $3,500 can be
$3,500 can be
Sophomore - over 30
credit hours earned
of $4,500 can be
$4,500 can be
Except those whose parents are unable to borrow a PLUS loan.
These limits also apply to dependent Students whose parents are unable to
borrow a PLUS Loan.
Fees and Interest Rates
There is an origination fee subtracted from the loan proceeds before each
disbursement (loans are disbursed in two equal disbursements per term).
This percentage is set by the Department of Education and may change
during the academic year. Because of the fees, the total amount disbursed
will always be less than the amount borrowed. This fee is paid directly to
the Federal Government.
Interest rates will be determined each June for new loans being made for the
upcoming award year, which runs from July 1 to the following June 30.
Each loan will have a fixed interest rate for the life of the loan. Check your
Notice of Disclosure for your interest rate.
Completing the Master Promissory Note (MPN)
The Master Promissory Note (MPN) can be completed at studentaid.gov. It
is the student’s responsibility to complete the Master Promissory Note.
Failure to complete your MPN will stop your loan from being processed.
Once your loan has been originated, you will receive a Notice of
Guarantee/Disclosure Statement (NOG/DS) from the Federal Direct Student
Loan Program that provides you with the important information regarding
your loan (i.e. loan period, tentative disbursement dates, disbursement
amounts and interest rates).
Disbursement of Funds
Funds will be disbursed through College of DuPage according to the dates
listed on your NOG/DS. Eligibility and enrollment status will be checked at
time of disbursement.
Loan funds will be disbursed based on enrollment in at least 6 credit hours
and the starting dates of class sessions and will be placed directly on your
student account. Any remaining loan funds in excess of your educational
costs will be refunded within approximately 14 days of being placed on
If you are not actively participating in and attending at least 6 credit
hours at the time of your loan disbursement, your loan disbursement will be
After the loan funds have been placed on your student account, you will
receive an email notifying you of loan funds posted to your account. If you
wish to have your loan cancelled, you must notify the Office of Student
Financial Assistance in writing within 14 days from receipt of the
notification. Complete a Return of Loan Funds Form and submit it to the
Office of Student Financial Assistance.
Disbursements of loan funds will be delayed until 30 days after the start of
the term (or class session) for ALL students. All loan funds will be
disbursed in two equal disbursements per term. Any loan funds in excess of
your educational costs will be refunded within approximately 14 days of
being placed on your account based on your refund method.
Conditions of the Award
1. I understand that I must enroll in at least six (6) eligible credit hours
(1000-level or above or approved remedial classes) for each term of the
loan. Failure to do so will result in cancellation of my loan.
2. I understand that my loan will be disbursed in two equal payments each
3. If I completely withdraw from all my classes or drop below half-time
enrollment at any time prior to receipt of my loan funds, I will not be
entitled to receive my loan funds.
4. I understand that if grades have posted before my loan funds are placed
on my account, my loan award will be based on my successfully
completed hours, which must be at least 6 credit hours. Please refer to the
Office of Student Financial Assistance Standards of Academic Progress
5. I understand that if I drop to zero hours after receiving my loan
disbursement, I will be ineligible to receive any subsequent
disbursements and may owe money back to the college.
6. I understand that I must be making Satisfactory Academic Progress as
outlined in the
Office of Student Financial Assistance Standards of
Academic Progress Policy. Failure to do so will result in the cancellation
of my Federal Loan and/or PLUS Loan Award.
Rights and Responsibilities
1. I understand that I have the right to cancel any portion of my loan. If I
wish to cancel my loan after my funds have been disbursed, I must
submit a request accompanied by any loan disbursements I’ve received to
the Office of Student Financial Assistance within 14 days from receipt of
2. I understand that in accordance with the Federal Refund Policy, if I
completely withdraw from of my classes before completing 60% of the
term, I could owe a refund of my loan funds to the College of DuPage
and to my lender. The amount owed will be based on the loan amount
that was originally awarded.
3. I understand that in accordance with the Federal Refund Policy, I must be
attending classes to continue receiving my loan funds.
4. If I fail to complete at least one course during the term, I could owe a
refund of my loan funds to the College of DuPage and to my lender. The
amount owed will be based on the loan amount that was originally
5. I understand that prior to transferring and/or graduating from the College
of DuPage, I must complete Exit Counseling. I must also complete
Counseling whenever my enrollment is less than six (6) eligible credit