Federal Direct Loans
Binghamton University participates in the William D. Ford Federal Direct Loan Program for students. Federal Direct Subsidized, and Unsubsidized loans are not processed through a bank; therefore, bank loan applications are not required. All student loans must be processed through the Direct Loan program, and no exceptions will be made.
Federal Direct Subsidized Student Loans are need-based loans. 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.
Federal Direct Unsubsidized Student Loans are non-need based loans. All students who meet general eligibility requirements may qualify for Federal Direct Unsubsidized Loans. The student is responsible for all interest that accrues while the student is enrolled at least half-time. Interest begins to accumulate from the date of the first loan disbursement and is billed quarterly. Students may choose to pay the interest that accumulates or have it capitalized. Paying the interest as it accumulates will reduce the amount of interest that must be repaid.
Overview:
Students must be enrolled at least half-time to be eligible for student loans. Application for student loans is done by filling out and submitting the Free Application for Federal Student Aid (FAFSA). Basic eligibility requirements must be met, as determined by the federal government. A 2.0 percent origination fee is deducted from the loan before it is disbursed. This means that while you will pay back 100 percent of what you borrow (plus interest) you will actually receive only 97.5 percent, which can be applied toward your tuition bill. 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.
Direct Loan Servicing provides online access using your PIN 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, and complete the On-line Exit Counseling Session. Enhancements include 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.
