Federal Direct Loans
You are automatically considered for Direct Loans offered through the U.S. Department of Education when you apply for financial aid by completing the FAFSA (FREE Application for Federal Student Aid). Loans are aid that will need to be repaid, with interest, after you graduate or leave college.
If you are an eligible undergraduate or graduate student and awarded a Subsidized Direct Loan or an Unsubsidized Direct Loan (graduate students are only eligible for unsubsidized direct loans), it will appear on your financial aid award letter. Students must accept student loans and complete loan requirements prior to receiving the loan.
NEW Beginning 26-27: Student loans will be awarded and earned based on the student’s enrollment status during the semester. Students who are full-time (12 or more credit hours) will continue to be eligible for the full loan amount offered based on the student’s dependency status and grade level. Students who do not enroll in full-time hours will have their loans reduced to reflect their actual enrollment. Students who do not successfully pass the credit hours they received federal student loans for; will have their loans reviewed for possible reductions. To be eligible for the full loan amount, an undergrad student should complete a minimum of 24 credit hours, and a graduate student should complete 12 credit hours.
Differences Between Subsidized and Unsubsidized Loans
Direct Subsidized Loans are offered to undergraduate students with financial need. They have a low fixed interest rate and do not accrue interest while the student is enrolled at least half-time in a degree program. Students do not make payments until six months after graduating or drop below half-time. Direct Subsidized Loans are available only to undergraduate borrowers.
Direct Unsubsidized Loans are available to undergraduate and graduate students with or without financial need. These loans accrue interest while the student is in school and during deferments and grace periods. Students may defer interest payments until after they graduate, but doing so will result in a higher loan payment over the life of the loan.
These loans have origination fees, so the amounts applied to your university student account are less than amounts listed on your Financial Aid Award Letter fees are adjusted each fall due to federal sequestration legislation. Interest rates on these loans change each June with changes becoming effective on July 1.
Additional Eligibility Requirements for Direct Student Loans
- Undergraduate students must be enrolled in a degree seeking program and be enrolled in at least half-time hours (6 credit hours).
- Graduate students must be enrolled in an eligible degree seeking program or an eligible graduate certificate program and be enrolled in at least half-time hours (3 credit hours).
- Students in default of student loans are not eligible to receive additional student loans.
Required Loan Requirements
Entrance Counseling:
If you are a first-time Direct Loan borrower, you must complete Direct Loan Entrance Counseling on the U.S. Department of Education’s studentaid.gov website. This interactive counseling session and quiz helps students develop budgets for managing educational expenses and also understand their loan responsibilities. You must complete the counseling before your loan funds can be disbursed to you. https://studentaid.gov/entrance-counseling/
Master Promissory Note:
If you have a Direct Subsidized, Unsubsidized Loan or a Parent Plus Loan, you will be required to complete and sign a Master Promissory Note (or MPN). The Master Promissory Note authorizes Park University to credit the loan funds to your Park U student account. MPNs are generally good for 10 years, so most students do not need to complete them more than once during their time at Park U. If you sign a Master Promissory Note and do not want loans in future years, you must decline the loan the following year on your award letter. If you accept loans it will be disbursed to your Park U student account.
https://studentaid.gov/mpn/
Exit Counseling:
This is required for Direct Loan student borrowers who are graduating or dropping below half-time enrollment. This counseling session helps borrowers understand their rights and responsibilities in repayment and helps them choose a repayment plan. You must use your Department of Education FSA ID to access this counseling session.
https://studentaid.gov/exit-counseling/
Receiving your Loan Funds:
You must have signed all of your loan documents and be enrolled at least half-time to receive your loan funds. You will automatically receive your accepted student loan funds each term after participation in your courses have been verified. If you do not want a student loan, decline them on your award offer.
Cohort Default Rate
Dependent Student | Annual Federal Direct Subsidized Loan by Grade Level | | | | | Dependent Student | Annual Federal Direct Unsubsidized Loan by Grade Level | | |
| Full-time 12 or more | 3/4 Time (9-11) | 1/2 Time (6-8) | | | | Full-time 12 or more | 3/4 Time (9-11) | 1/2 Time (6-8) |
| Freshman | $3,500 | $2,625 | $1,750 | | | Freshman | $2,000 | $1,500 | $1,000 |
| Sophomore | $4,500 | $3,375 | $2,250 | | | Sophomore | $2,000 | $1,500 | $1,000 |
| Junior | $5,500 | $4,125 | $2,750 | | | Junior | $2,000 | $1,500 | $1,000 |
| Senior | $5,500 | $4,125 | $2,750 | | | Senior | $2,000 | $1,500 | $1,000 |
| | | | | | | | | |
Independent Student | Annual Federal Direct Subsidized Loan by Grade Level | | | | | Independent Student | Annual Federal Direct Unsubsidized Loan by Grade Level | | |
| SUB | Full-time 12 of more | 3/4 Time (9-11) | 1/2 Time (6-8) | | | UNSUB | Full-time 12 or more | 3/4 Time (9-11) | 1/2 Time (6-8) |
| Freshmen | $3,500 | $2,625 | $1,750 | | | Freshmen | $7,000 | $5,250 | $3,500 |
| Sophomore | $4,500 | $3,375 | $2,250 | | | Sophomore | $7,000 | $5,250 | $3,500 |
| Junior | $5,500 | $4,125 | $2,750 | | | Junior | $7,000 | $5,250 | $3,500 |
| Senior | $5,500 | $4,125 | $2,750 | | | Senior | $7,000 | $5,250 | $3,500 |
| | | | | | | | | |
| Full-time | 3/4 Time | 1/2 Time | | | | | | |
| Graduate Loans | $20,500 | $15,375 | $10,250 | | | | | | |
| | | | | | | | | |
| Lifetime borrowing limits | Max Federal Subsidized Amount | | Max Federal Sub & Unsub Combined | | | | | | |
| Dependent Undergraduate | $23,000 | | $31,000 | | | | | | |
| Independent Undergraduate | $23,000 | | $57,500 | | | | | | |
| Graduate | $65,500 | | $100,000 | | | | | | |