Shawnee State University understands that managing the cost of education may be a challenge for many families. In addition to grants, scholarships and federal work study, there are several student loan options available to students and their families.
Shawnee State University participates in the William D. Ford Federal Direct Loan Program. When you borrow from the Direct Loan Program, the loan money comes from the federal government directly to SSU. The loan proceeds are applied to your student account toward your tuition, fees and other approved charges. Once your student account is paid in full, any remaining loan funds are issued to the student.
Students who complete the FAFSA may receive a Federal Direct Student Loan. This loan may be subsidized, unsubsidized or a combination of both. This loan is in the student's name and is repaid by the student. Eligibility is determined by the total cost of attendance, the results of the FAFSA, and other financial aid resources. Students must be enrolled and attend at least half time (6 hours for undergraduate; 5 hours for graduate) to be eligible for a student loan.
This is a need based loan. The government pays the interest while the student is in school at least half time, during the six month grace period, and during any deferment periods.
This is a non-need based loan. The student is responsible for the interest from the time of disbursement until the loan is paid in full. The student may pay the interest while in school or the interest may be capitalized (added) to the principle loan amount. Students are encouraged to pay the interest while in school to help keep their total loan debt lower.
The interest rate on the Direct Loan is a fixed rate for the life of the loan. Interest rates are determined at the end of May based on the 10 year treasury note and are set beginning July 1 through June 30 each year.
2016-2017 Interest Rates
For loans that have a first disbursement on or after October 1, 2015, the U.S. Department of Education will charge a 1.068% loan fee for processing your loans. The loan fee is deducted from each disbursement of the loan. This means that 98.932% of the total loan will be applied to the student account. This fee will remain in effect until Congress makes a change.
For loans first disbursed on or after October 1, 2016, the loan fee will be 1.069%. This means that 98.931% of the total loan will be applied to the student account.
Loan amounts are based on the grade level, dependency status, academic major, and other financial aid resources of the student.
Maximum Annual Loan Amounts
|Dependent Students||Independent Students and Dependent Students whose parents were denied a PLUS loan|
|Borrower's Academic Level||Total Amount of Subsidized and Unsubsidized||Total Amount of Subsidized and Unsubsidized||Subsidized Loan Limits|
|Freshman (0-29 hrs)||$5,500||$9,500||No more than $3,500|
|Sophomore (30-59 hrs)||$6,500||$10,500||No more than $4,500|
|Junior & Senior (60+ hrs)||$7,500||$12,500||No more than $5,500|
Maximum Aggregate Loan Amounts
|Subsidized Loan Limit||Subsidized/Unsubsidized Loan Limit|
*As of July 1, 2012, subsidized student loans are no longer available for graduate students.
The first disbursement of a loan for a first-time borrower who is a first-year undergraduate student must be delayed until 30 days into the first semester. Refunds are issued once SSU receives funds that create the credit balance.
If a student is applying for a one semester loan, the loan will come in two disbursements. The first disbursement will be a the beginning (or 30 days into the semester) and the second disbursement will be at the midpoint of the semester. Refunds are issued once SSU receives the funds that create the credit balance.
All students who apply for a Federal Direct Loan are required to complete a Federal Direct Loan Master Promissory Note (MPN). The MPN can be completed online.
The MPN is your contract with the U.S. Department of Education. By signing the MPN, you promise to repay your student loans. The MPN is good for up to 10 years and you may receive additional loans using the same MPN.
All students who are first-year borrowers with the Federal Direct Loan Program must complete entrance counseling. Entrance counseling can be completed online. Entrance counseling must be completed before the Financial Aid Office will certify your student loan.
Repaying your Student Loans
You are required to begin making payments on your student loans six months after you graduate, leave school, or drop below half time enrollment status. The Federal Direct Loan Program offers several repayment plans as well as deferments, forbearances, and consolidation. You may choose the payment plan that is best for you. To estimate the amount of your payment based on the different repayment plans available, you may access the Direct Loan's interactive repayment calculator at www.direct.ed.gov/calc.html. Following is a list of available repayment plans.
Standard Repayment Plan
Under this plan, you will make fixed monthly payments and repay your loan in full within 10 years (not including periods of deferment or forbearance) from the date the loan entered repayment. Your payments must be at least $50 a month and will be more, if necessary, to repay the loan within the required time period.
Graduated Repayment Plan
Under this plan, you will usually make lower payments at first, and your payment will gradually increase over time. You will repay your loan in full within 10 years (not including periods of deferment or forbearance) from the date the loan entered repayment. No single payment will be more than three times greater than any other payment.
Extended Repayment Plan
Under this plan, you will repay your loan in full over a period not to exceed 25 years (not including periods of deferment or forbearance) from the date the loan entered repayment. You may choose to make fixed monthly payments or graduated monthly payments that start out lower and gradually increase over time. If you make fixed monthly payments, your payments must be at least $50 a month and will be more if necessary, to repay the loan within the required time period. You are eligible for this repayment plan only if (1) you have an outstanding balance on Direct Loan Program loans that exceeds $30,000, and (2) you had no outstanding balance on a Direct Loan Program loan as of October 7, 1998 or on the date you obtained a Direct Loan Program loan after October 7, 1998.
Income Contingent Repayment Plan
Under this plan, your monthly payment amount will be based on your annual income (and that of your spouse if you are married), your family size, and the total amount of your Direct Loans. Until the U.S. Department of Education obtains the information needed to calculate your monthly payment amount, your payment will equal the amount of interest that has accrued on your loan unless you request forbearance. As your income changes, your payments may change. If you do not repay your loan after 25 years under this plan, the unpaid portion will be forgiven. You may have to pay income tax on any amount forgiven.
Income-Based Repayment Plan
Under this plan, your required monthly payment amount will be based on your income during any period when you have a partial financial hardship. Your monthly payment amount may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance on your loans.
Borrower's Rights and Responsibilities
You have the right to:
- Written information on your loan obligations and information on your rights and responsibilities as a borrower.
- A grace period and an explanation of what this means.
- A disclosure statement, received before you begin to repay your loan, that includes information about interest rates, fees, the balance you owe, and the number of payments.
- Deferment of repayment for certain defined periods, if you qualify and if you request it.
- Forbearance, if you qualify and if you request it.
- Prepayment of your loan in whole or in part any time without an early-repayment penalty.
- A copy of your promissory note either before or at the time your loan is disbursed.
- Documentation that your loan is paid in full.
You are responsible for:
- Completing exit counseling before you leave school or drop below half time enrollment.
- Repaying your loan even if you do not complete your academic program, you are dissatisfied with the education you received, or you are unable to find employment after you graduate.
- Notifying your school and the Direct Loan Servicing Center if you move/change your address or change your name.
- Making monthly payments on your loan after your grace period ends, unless you have a deferment or forbearance.
- Notifying the Direct Loan Servicing Center of anything that might alter your eligibility for an existing deferment or forbearance.