Federal Loans Financial Aid Basics
Federal loans provided through the William D. Ford Federal Direct Loan Program are referred to as Direct Loans because the federal government — through the U.S. Department of Education — is the lender. Unlike grants, student loans are borrowed money that you are legally obligated to repay, with interest.
You must maintain an enrollment status of at least half-time to be eligible for Direct Loans. Additionally, all first-time Direct Loan borrowers must complete a Master Promissory Note (MPN) and Entrance Counseling before funds will be disbursed. Repayment begins after a six-month grace period following graduation, withdrawal from school or enrollment of less than half-time.
Direct Loans include the following:
Subsidized loans are awarded on the basis of financial need. If you are eligible for a subsidized loan, the U.S. Department of Education will pay (subsidize) the interest on the loan while you remain in school, for the first six months after you leave school, and during periods of deferment.
Unlike subsidized loans, the borrower is responsible for interest that accrues on Direct Unsubsidized Loans from the time the loan is disbursed until it is paid in full, and financial need is not required to receive an unsubsidized loan.
Parents may borrow Direct PLUS Loans to help pay for the educational expenses of their dependent undergraduate children (as determined by the FAFSA). Additionally, graduate and professional degree students may obtain PLUS Loans to help pay for their own education. PLUS Loans are not need-based, but applicants must not have an adverse credit history or they may be required to obtain an endorser who does not have an adverse credit history.
Generally, repayment of PLUS loans begins immediately following disbursement, unless the borrower obtains a deferment. The maximum annual amount for PLUS loans is equal to the student’s cost of attendance minus other financial aid received.
Current interest rates, as well as annual and aggregate loan limits, for the federal loans described above may be found at www.studentaid.ed.gov.
For more information about FSA programs, see www.studentaid.ed.gov or call the FSA Information Center at 1-800-4-FED-AID (1-800-433-3243). For additional questions regarding other financial assistance opportunities that may be available to you, please contact Grantham University’s Office of Financial Aid at 866-850-2980 or email us at firstname.lastname@example.org.
- Tips for Managing Your Loan
- Refund and Withdrawal Policies
- Loan Entrance and Exit Counseling
- In-School Deferment Request Form
We're here to help at all phases of your education - including providing the following resources to help you manage your student loans.
The Office of Financial Aid at email@example.com or 1-866-850-2980
The Federal Student Aid Information Center at www.studentaid.ed.gov or 1-800-4-FED-AID
The Direct Loan Servicing Center at www.dl.ed.gov or 1-800-848-0979
The National Student Loan Data System (NSLDS) at www.nslds.ed.gov