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FDL
Federal Direct Loan Program (FDL)
Application Procedures
Direct Loan Entrance
Counseling Quiz
Selection of Recipients and Allocation of Awards
Loan Schedule
Rights and Responsibilities for Recipients
FDPLUS
Student Loans: Avoiding Deceptive Offers
Entrance Counseling Guide for Direct Loan Borrowers
Exit Counseling Guide for Direct Loan Borrowers
Federal Direct Loan Program (FDL)
http://www.ed.gov/DirectLoan
Application Procedures
Application is made through the office of
Student Financial Services by completing a Loan Origination Request
Form. The applicant is required to first file and receive a response
from a FAFSA.
A counseling session and the completion of a Direct Loan
Entrance Interview Quiz are required. When the loan is approved, a
promissory note is signed by the student.
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Direct Loan Entrance Counseling Quiz
The Direct Loan Entrance Counseling Quiz can be completed
on the internet at
Entrance Counseling for Borrowers followed
by an online master promissory note at http://dlenote.ed.gov A Student loan Ombudsman office is available for assistance with
loan problems at 1-877-557-2575 or http://ombudsman.ed.gov
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Selection of Recipients and Allocation of Awards
To be eligible for
a Federal Direct Loan, a student must be:
-
a U.S. Citizen or
permanent resident alien
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enrolled in or
admitted as a matriculated, at least half-time in their current
session, six (6)credits or tuition units
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You must have a GPA of 2.0 or better
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Loan Schedule
The loan amounts vary and are based on class year:
for example, $3,500.00 during the student's freshman year, $4,500.00
during the sophomore year, etc. All students are eligible to receive
interest benefits on their loans unless they choose to waive them.
Some students are eligible for a full interest subsidy on a
subsidized loan during the time He/She is enrolled in school at
least half-time, and for a following six month grace period before
repayment must begin. An "Origination Fee" of 2% of the loan amount
is subtracted in full at the time the check is issued.
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Rights and Responsibilities for Recipients
Payment of the
principal may be deferred during study under a graduate
fellowship program approved by the U.S. Commissioner of Education,
during up to three years as a full-time Peace Corps or VISTA or
similar national program volunteer.
Six months after ceasing to be at least a half-time student, the
borrower must make formal arrangements with the loan service to
begin repayment. The following regulations apply:
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Depending on the amount of the loan, the minimum monthly payment may
be at least $50.00 plus interest. Under unusual and extenuating
circumstances the loan service, on request, may permit reduced
payments.
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The repayment period varies and is dependent upon the repayment plan
chosen. For example, the Standard Repayment Plan has a maximum
period of ten years, and the Income Contingent Payment Plan has a
maximum period of 25 years.
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Repayment in whole or part may be made at any time without penalty.
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Federal Direct Parent Loan for Undergraduate Student (FDPLUS)
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FDPLUS
Enables either natural or adoptive parents of dependent
undergraduate students to borrow per child up to the cost of
education, for each academic year at federally approved schools. The
amount borrowed in any year cannot be greater than the cost of going
to school during that year, minus all other financial aid received
for the period of the loan. Costs that may be covered include
tuition and fees, room and board, books, transportation, and an
allowance for personal expenses. FPLUS loans for which the first
disbursement was made on or after July 1, 1993 have no aggregate
loan limit. Interest rates are variable and change every July 1st.
Repayment of the loan must begin within 60 days after the date funds
are distributed. Borrowers have 10 years to repay. The loan service
may charge an Insurance Premium of up to 4% on the loan principal.
This premium is deducted from each loan disbursement. Application is
made through the Financial Aid Office by completing a Loan
Origination Request Form. Parents will be eligible for the same
authorized deferments described in the Federal Direct Loan Program.
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