Federal Direct Loans (William D. Ford Direct Student Loans)

The U.S. government is the lender for the Direct Loan program for both the subsidized and unsubsidized student loans. The loans are guaranteed by the federal government.

 

Federal Direct Subsidized Loan

  • Low interest loan for eligible students.
  • “Subsidized” means the federal government pays the interest on the loan as long as the student is enrolled at least half-time.
  • Undergraduate students must be enrolled at least half-time (6 credits) to borrow loans.
  • Minimal loan origination fees are deducted from the amount borrowed.
  • Repayment begins six months after you graduate, leave school or drop below half-time enrollment.

Federal Direct Unsubsidized Loan

  • “Unsubsidized” means the federal government does not pay the interest while the student is enrolled and the interest accrues. Students have the option to pay the interest while enrolled.
  • Undergraduate students must be enrolled at least half-time (6 credits) to borrow loans.
  • Low-interest loan vailable to students who do not qualify for all or part of the subsidized loan.
  • Minimal loan origination fees are deducted from the amount borrowed.
  • Repayment begins six months after you graduate, leave school or drop below half-time enrollment.

 

For more detailed information, go to StudentAid.gov/sub-unsub

 

To complete the process to borrow your student loans go to: https://studentloans.gov.You must use your Federal PIN that was used to sign your FASFA to complete this two step process. If you do not remember your PIN or need to apply for your federal pin, go to http://www.pin.ed.gov.

The following two (2) steps are required before your loan can be credited to your account:


1. ENTRANCE COUNSELING SESSION: The online Entrance Counseling session assures that you understand your rights and responsibilities in borrowing federal loans.


2. MASTER PROMISSORY NOTE:  All students borrowing from the Federal Direct Loan Program are required to sign a Master Promissory Note (MPN) on line for their Direct Loan. This Direct Loan MPN is valid for ten years.

 

Students who are returning to Johnson State College and have already borrowed from the Direct Loan Program do not need to complete the above steps again. You only need to accept your loans and they will be processed by the financial aid office.

 

Want More Information and Updates on Federal Direct Loans?

Use www.studentloans.gov as your source for information from the U.S. Department of Education about how to manage your student loans. Remember loans must be repaid so borrow only what you need.