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Federal Direct Student Loans

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.

Subsidized 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.

Unsubsidized Loan

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.

Interest Rates

The interest rate on the Direct Loan is a fixed rate for the life of the loan.

2013-14 Interest Rates

 Category Subsidized Unsubsidized
Undergraduate 3.86% 3.86%
Graduate N/A* 5.41% 

Loan Fees

For 2013-14 the U.S. Department of Education will charge a 1.072% loan fee for processing your loans. The loan fee is deducted from each disbursement of the loan. This means that 98.928% of the total loan will be applied to the student account.

Loan Amounts

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
Graduate N/A $20,500 Not available*

Maximum Aggregate Loan Amounts

  Subsidized Loan Limit Subsidized/Unsubsidized Loan Limit
Dependent students $23,000 $31,000
Independent students $23,000 $57,500
Graduate students $65,000* $138,000

*As of July 1, 2012, subsidized student loans are no longer availalbe for graduate students.

Disbursements

The first disbursement of a loan for a first year undergraduate student and a first time borrower 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.

Promissory Note

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. You will use your U.S. Department of Education's Personal Identification Number (PIN) to sign your MPN online. This is the same PIN number you used to sign your FAFSA. If you do not have your PIN, you can request a duplicate PIN 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.

Entrance Counseling

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 (effective July 1, 2009)

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.

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