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Federal Direct Subsidized Loans Overview: Application for this type of financial aid is done by filling out and submitting the Free Application for Federal Student Aid (FAFSA), and Basic eligibility requirements must be met, as determined by the federal government. The federal government pays the interest that accrues on the loan while the student is enrolled at least half-time and during the six month grace period. A 3% origination fee is deducted from the loan before it is disbursed (students must be enrolled at least half-time to be eligible for Federal Direct Subsidized Loans). This means that while you will pay back 100 percent of what you borrow (plus interest), you will actually receive only 97 percent, which can be applied toward your tuition bill with Student Accounts. If you have paid your bill in full before the loan disbursement is processed, the loan money will be given to you as a refund and can be used for other educational expenses such as books, supplies, travel or living expenses. Based on need, the federally set annual loan limits are: freshmen - up to $2,625 per academic year; sophomores - up to $3,500; juniors and seniors - up to $5,500. Direct Loan Servicing provides online access to information on your existing Direct Loan(s). You may access your account information, view your loan balance, change your address, download deferment, forbearance and Electronic Debit forms. It includes the ability to view your payment history, change your payment due date and to select a different repayment plan using the new repayment estimator that provides payment amounts using your actual Direct Loan balances in the system. You now have the ability to check amounts borrowed to date and repayment status. You will need your PIN to do so. The PIN serves as your identifier to let you access your personal information in various US Department of Education Systems. It's like the Personal Identification Number you get from your bank that enables you to access your account. Because your PIN serves as your electronic signature, you should not give it to anyone. Once you successfully complete a request, the US Department of Education will mail your PIN to you via the US Postal Service. It will take approximately 7-10 days after you request your PIN for you to receive it in the mail. When you use your PIN, you must type the PIN exactly as it appears on
the letter that is sent to you. |