Federal Direct Stafford Loan Program
(undergraduate and graduate)
Beginning in spring 2010, Nazareth College is participating in the William D. Ford Federal Direct Student Loan Program. William D. Ford Federal Direct Loans are provided by the federal government and require that you first file a Free Application for Federal Student Aid (FAFSA). The Direct Loan Program provides a simple way to obtain and repay student loans; the U.S. Department of Education is the lender and the loan funds are sent directly to Nazareth College.
If you borrowed federal loans at a previous institution, you can combine those loans with the Federal Direct Loans under the Direct Consolidation Loan Program. Your academic year level and dependency status determines the maximum annual amount you may be eligible to borrow; the federal government also monitors loan aggregates for both undergraduate and graduate students.
What Kinds of Direct Loans are Available?
- Direct Subsidized Loans—are loans for students with financial need, as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period and during deferment periods.
- Direct Unsubsidized Loans—are loans for students that are not based on financial need. Interest is charged during all periods. The interest on your loan will accumulate while you are in school. You may choose to either pay the interest, or to defer the interest payment, in which case it will be capitalized.
|Dependent Student||Independent Student|
|Year 1||$5,500 (No more than $3,500 of this amount may be in subsidized loans)||$9,500 (No more than $3,500 of this amount may be in subsidized loans)|
|Year 2||$6,500 (No more than $4,500 of this amount may be in subsidized loans)||$10,500 (No more than $4,500 of this amount may be in subsidized loans)|
|Years 3, 4, & 5||$7,500 (No more than $5,500 of this amount may be in subsidized loans)||$12,500 (No more than $5,500 of this amount may be in subsidized loans)|
|n/a||$20,500 per Borrower Based Year
|Dependent Student||Independent Student|
||$31,000 (No more than $23,000 of this amount may be in subsidized loans)
||n/a||$57,500 (No more than $23,000 of this amount may be in subsidized loans)|
|Graduate||n/a||$138,500 (No more than $65,500 of this amount may be in subsidized loans)|
Interest Rates and Fees
For loans first disbursed on or after 7/1/13, the interest rate for Undergraduate Subsidized Direct Loans is 6.8% fixed; the interest rate for Undergraduate Unsubsidized Direct Loans is 6.8% fixed. The interest rate for the Unsubsidized Graduate Direct Loans is 6.8% fixed. A 1.051% origination fee is deducted by the government from each loan disbursement. Undergraduate students and graduate students are no longer eligible for interest subsidy during the six month grace period.
Master Promissory Note (MPN) and Entrance Counseling
If you are a first time Federal Direct Loan borrower you must sign a Master Promissory Note and complete an Entrance Counseling tutorial/quiz.
- The Master Promissory Note can be completed at http://www.studentloans.gov
2. The Entrance Counseling tutorial/quiz can be completed at https://www.studentloans.gov
Federal Direct Loan Consolidation—Simplify your loan repayments, secure a non-variable interest rate, find out if loan consolidation is for you.
Federal Direct Loan Exit Interview—All federal loan borrowers are required to complete an Exit Counseling session prior to graduation, leave of absence, or withdrawal from school. The purpose of the exit interview is to inform borrowers of the provisions of the loan(s) as well as their rights and responsibilities now that the loan(s) are in another status.
Students who have additional questions about the Exit Interview process should contact Office of Financial Aid at 585-389-2310 or email@example.com.
Graduate Student Loan Eligibility
Graduate students are eligible to borrow Federal Direct Loans as long as the following conditions are met:
- You are matriculated in a graduate program
- You are registered for at least 6 credit hours per semester
- You have filed a current FAFSA
- You have completed Direct Loan and/or Grad PLUS Entrance counseling
- You have completed a Master Promissory Note
- You have Federal Direct loan eligibility remaining
Upon receipt of a current FAFSA, the Nazareth College Financial Aid Office will automatically award you the following Federal Direct Loan amounts according to your registered credits per semester:
6 credits per semester - $5,000
9 credits per semester - $7,500
12 credits per semester - $10,250
- If you want to reject the entire loan, you may reject the entire loan amount on NazNet, email the financial aid office at firstname.lastname@example.org, or call the financial aid office at (585) 389-2310.
- If you want to reject a portion of the loan, you must contact the financial aid office at (585) 389-2310 or email@example.com.
- You may request additional Stafford loans by mailing or faxing a Supplemental Loan Request Form to the financial aid office. Additional loans amounts are subject to federal guidelines and may not exceed your Cost of Attendance.