A glance @ FDS
A federal direct subsidized loan is:
- federally funded
- subsidized (interest is not added until enrollment falls below half-time)
- based on need
- repaid once you are no longer enrolled at least half-time
Federal Direct subsidized loan
This is a federally financed and subsidized student loan made based on your financial need and other specific eligibility requirements. Undergraduate students may borrow up to the cost of attendance minus the expected family contribution and any other aid received. You may not borrow more than the maximum annual or aggregate amount. The federal government does not charge interest on these loans while you are enrolled at least half-time.
Changes in federal law have eliminated graduate student eligibility for subsidized loans. Graduate students may still be eligible for unsubsidized loans or a Grad PLUS. Loan limits remain the same, but interest begins accruing immediately on unsubsidized loans.
There is a time limit for Federal Subsidized Loans. Subsidy is limited to 150 percent of the length of the educational program for subsidized loans that were disbursed on or after July 1, 2013, for students who have no outstanding balance of principle or interest (Direct Loan or FFELP) at the time of their disbursement. For example, if a student is enrolled in a four-year educational program, their eligibility limit for subsidized loans is six years.
- Completed federal master promissory note (MPN) required for first-time borrowers
- Federal loan entrance counseling required for first-time borrowers at WMU
- Award eligibility based upon EFC, cost of attendance, enrollment and other resources
- Award will be canceled if enrolled less than half-time
- Award may be adjusted or canceled if there is a change to EFC, cost of attendance, enrollment, graduating in August or December or if you receive additional resources
- Undergraduate, or teacher certification
- Must be enrolled at least half-time
- Must be making SAP
- US Citizen or eligible non-citizen
- Not in default on prior educational loans
- Repayment deferred while enrolled at least half-time
- You will begin to repay your loan six months after you cease to be enrolled at least half-time. During this six-month "grace period", interest will not accrue on your loan if it is first disbursed after July 1, 2014. For sample repayment amounts, see the federal loan repayment fact sheet.
- Complete an exit counseling session so you are aware of all the information you will need to know about repaying your loan.
- If you drop to less than half-time, withdraw, drop out, graduate or simply do not return to school, this information will be reported to the loan servicer and they will begin to count your grace period. You are responsible for notifying WMU immediately if your enrollment changes as described above.
- Payments will be made to the U.S. Department of Education (holder of the loan)
- For detailed information about repayment, deferments, forbearance, forgiveness programs and other frequently asked questions, go to https://studentloans.gov/
- To obtain information about consolidating your federal loans, visit studentloans.gov . The interest rate for a direct consolidation loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
- It is important that you maintain a "very important papers file" and keep copies of your award notices, MPN, borrower's rights and responsibilities and the direct loan disclosure statement in one place as they provide the details of your loans and your rights and responsibilities as a student loan recipient.
05/20/2015 10:16 AM