Federal Family Education Loans or William D. Ford Federal Direct Loans (Subsidized and Unsubsidized)
Federal Family Education Loans or William D. Ford Federal Direct Loans are another source of Federal Student Aid. Loans may be obtained from either the Federal Family Education Loan (FFEL) funded by a lender, such as a bank, credit union or savings and loan association or the William D. Ford Federal Direct Loan Program funded by the U.S. Department of Education. Loans obtained through these programs are lower interest rate loans that are insured by guarantee agencies or the U.S. Department of Education. A student can apply for Stafford Loans through the school’s financial aid department. Student eligibility must be determined using the results of the Free Application For Federal Student Aid and a student must be enrolled in an approved program at least half time to participate in Federal Title IV programs. The loan must be used to pay for direct and/or indirect educational expenses.
Subsidized Stafford Loans
The Subsidized Stafford Loan is one in which the interest on the amount borrowed is not charged to the borrower while in school and for six months after leaving the school but is instead paid to the lender by the U.S. Government. Students who demonstrate financial need may qualify for a Subsidized Stafford Loan.
*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
Unsubsidized Stafford Loan
The Unsubsidized Federal Stafford Loan Program is a loan program that allows students to borrow a Federal Stafford Loan when previously they would not have been eligible because they did not demonstrate sufficient financial need for a Subsidized Stafford Loan. The same terms and conditions as the Subsidized Federal Stafford Loan apply except that the borrower is responsible for interest that accrues while she/he is in school. The Federal Stafford Loans have a six-month grace period from the time of graduation or the last date of attendance before repayment begins. Deferments after the student drops below half-time status are not automatic, and the student must contact the lender concerning his or her loan.
Federal PLUS Loans (Parent Loan) or Federal Direct PLUS Loans
The Federal PLUS or Federal Direct PLUS is available to parents of dependent students to help pay for educational expenses of the student. PLUS loans are not based on need and when combined with other resources, cannot exceed the student’s cost of education. The interest rate is variable and cannot exceed 9 percent and is determined annually. Repayment begins 60 days after the loan is disbursed. Applications can be obtained from the school’s Financial Aid department or from the lender. The school receives any Federal Direct Student Loan award in two payments: one after the student has been in attendance 30 days and the second payment after the student has successfully completed half the program. Any money due the student will be disbursed after the student’s account, including books, supplies and fees, is paid in full. Students must maintain Satisfactory Academic Progress to remain eligible for financial aid including federal loans and grant programs. Financial aid is available for those that qualify.
To be eligible for financial aid, students must meet the following requirements:
- Have a high school diploma or a GED.
- Be a United States Citizen or eligible non-citizen.
- Maintain Satisfactory Academic Progress.
- Not be in default of a student loan.
- Not owe a refund on a Federal PELL Grant or Federal Supplemental Educational Opportunity Grant.
- Agree to use any Federal Student Aid received solely for educational purposes.
- Be enrolled in at least a 600-clock hour program.
Have registered with the Selective Service, if required.
Federal Financial Aid does not automatically continue from one year to the next. Students must reapply every year.
How to Apply:
Complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility.
Once eligibility and need is determined, a Student Aid Report (SAR) is issued.
Review the Student Aid Report and make any corrections or additions, as needed. More documentation may be required.
All required documentation must be in the financial aid office before money can be requested from the federal government (high school diploma, tax forms, etc.)
Students will receive a PELL Grant Award Letter notifying them when a PELL Grant disbursement has been made to their account.
Students applying for student loans will need to submit a signed and completed promissory note. Notification will be made to the student when a loan payment has been disbursed to their account.