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 Federal Student Loan Information 

 

SPOTLIGHT

*IMPORTANT LOAN DISBURSEMENT INFORMATION CONCERNING ENROLLMENT AND DIRECT LOANS*

As per federal regulations, undergraduate students must be enrolled at least half-time (six credits for undergraduate students and six credits for graduate students) to be eligible for Federal Direct Loans.

The Federal Direct Subsidized/Unsubsidized and Federal Direct PLUS Loans WILL NOT DISBURSE to the Office of Student Accounts UNTIL THE STUDENT ACTUALLY BEGINS ATTENDANCE IN A TOTAL OF SIX CREDITS.  It is the attendance in the second 3 credit class that gives the student 6 credits which constitutes eligibility for federal financial aid.

Examples:

·         If a student is enrolled in two eight week courses, 3 credits in the first 8 weeks and 3 credits in the second 8 weeks, the loan will not disburse until the second class begins.

·         If a student is enrolled in a 3 credit course in Pre-session and a  credit course in Summer Session II, the loan will not disburse until Summer Session II.

Therefore, students who will not begin attendance in a total of six credits until later in the semester will need to plan accordingly for the purchase of any books or materials for their classes.  If a student drops a course and becomes less than half-time, the student will no longer be eligible for federal loans.

The Direct Subsidized and Unsubsidized Loans are federal loans available to students to assist with educational related expenses.  Information from the FAFSA determines the amount and type of Federal Direct Loan eligibility. 

  • Direct Subsidized Loan:  A "subsidized" loan means that the federal government pays the interest while the student is enrolled at least half-time in school.  The interest rate on the Federal Direct Subsidized Loan is a fixed rate of 4.66%* for the 2014-15 academic year.  There is an origination fee of 1.073%*. 
  • Direct Unsubsidized Loan:  An "unsubsidized" loan means that the student is responsible for paying the interest from the time the loan is disbursed.  The interest is capitalized however the student can make interest payments while in school.  This can be done by contacting the agency servicing the loan.  The 2014-15 interest rate on the Direct Unsubsidized Loan is a fixed rate of 4.66%* for undergraduates and 6.21%* for graduates.  There is an origination fee of 1.073%*.

The amount a student can borrow is determined by grade level and dependency/independency status. 

* The interest rate and origination fees are subject to change July 1 each year. 

Dependent Undergraduate and Post Bac Students: 

 Grade Level

 Direct Subsidized Stafford

Direct Unsubsidized Stafford

Total

Freshman

$3,500

$2,000

$5,500

Sophomore

$4,500

$2,000

$6,500

Junior

$5,500

$2,000

$7,500

Senior

$5,500

$2,000

$7,500

Aggregate Maximum Amount

$23,000

$8,000

$31,000

Independent Undergraduate and Post Bac Students: 

Grade Level

Direct  Subsidized Stafford

Direct Unsubsidized Stafford

Total

Freshman

$3,500

$6,000

$  9,500

Sophomore

$4,500

$6,000

$10,500

Junior

$5,500

$7,000

$12,500

Senior

$5,500

$7,000

$12,500

Aggregate Maximum Amount

$23,000

$34,500

$57,500

Teacher Certification:  Students enrolled in eligible State-required teacher certification coursework can receive $5,500 in the Direct Subsidized and Unsubsidized Loan program.  Independent students or undergraduate students whose parents are denied a Direct Plus loan can receive $7,000.  Please note, if the student is enrolled in only one semester of the academic year the loan will be prorated.   

Graduate Students:  can borrow up to $20,500 per year in Unsubsidized Direct Loans.  The aggregate maximum amount graduate students can borrow for all undergraduate and graduate years combined is $138,500.  

APPLICATION PROCESS: 

To apply for a Direct Loan, all students must:

  1. Complete the Free Application for Federal Student Aid (FAFSA)

  2. "Accept", "decline", or "accept a portion" of your Direct Loan on  MySRU once you receive your Financial Aid award letter. (Student can decline the Direct Loan on MySRU if they do not want this)

  3. First time borrowers must complete a Master Promissory Note (MPN) with the U.S. Department of Education at www.StudentLoans.gov (If you have questions when on this site, you can reach a customer service representative at 1-800-557-7394)

  4. First time borrowers must complete Entrance Loan Counseling at www.StudentLoans.gov (If you have questions when on this site, you can reach a customer service representative at 1-800-557-7394). 

Note: The SRU Financial Aid Office cannot disburse your Federal Direct Loans until steps 2-4 are completed.  For detailed instructions on how to complete the Entrance Counseling and signing your MPN, click here.

Students can check the status of the required Entrance Counseling and MPN on MySRU.

 

Contact Information

1 Morrow Way
Slippery Rock PA 16057

107 Maltby Center

724.738.2044
724.738.2922 (fax)

Financial.aid@sru.edu

M-F: 8:00-4:30
Summer: 8:00-4:00

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US Department of Education

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