FEDERAL DIRECT STUDENT LOANS
Do you know how much in student loans you have already received?
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(You will need your Social Security Number, your birth date and your FAFSA ID to access your information.)
The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student.
- A student who is at least 24 years old
- a graduate or professional student
- a veteran or on active duty in the military for other than training or state purposes
- an orphan
- a ward of the court
- has legal dependents other than a spouse
- a Dependent student does not meet any of the above criteria
The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans as well as the total or aggregate amount you may borrow:
Direct Stafford Loan Limits (Subsidized and Unsubsidized)
|Dependent 1||Independent 2|
|1st-year (0-24 hours)||$5,500 ($3,500)3||$9,500 ($3,500)|
|2nd-year (25-49 hours)||$6,500 ($4,500)||$10,500 ($4,500)|
|3rd- and 4th-year (50-120+ hours)||$7,500 ($5,500)||$12,500 ($5,500)|
|Aggregate||$31,000 ($23,000)||$57,500 ($23,000)|
|1st through 4th year||$20,500 for each year||Aggregate: $138,5004 ($65,500)|
1Except those whose parents are unable to borrow a PLUS loan.
2These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.
3The numbers in parentheses represent the maximum amount that may be subsidized.
4The aggregate amounts for graduate students include loans for undergraduate study.
The actual loan amount you are eligible to receive for an academic year is determined by your school (based on your Cost of Attendance) and may be less than the maximum annual amounts shown in the chart above. The aggregate limits include both Direct Subsidized and Unsubsidized Loans and any subsidized and unsubsidized Stafford Loans received through the Federal Family Education Loan (FFEL) Program. Once you have received your aggregate limit, you are no longer eligible to receive funds from the federal student loan program.
Deferment and Forbearance of Direct Loans
- A deferment is a period during which repayment of the principal and interest of your loan is temporarily delayed.
- During a deferment, payments are not required. The federal government may pay the interest on your Perkins, Direct Subsidized and Subsidized Stafford loan(s) during that period of deferment.
- The government does not pay the interest on your unsubsidized loans (or on any PLUS loans). You are responsible for paying the interest that accumulates during the deferment period, but your payment is not due during the deferment period. Any unpaid interest may be capitalized (added to your principal balance), and the amount you pay in the future will be higher.
- If you are enrolled in school at least half-time, Park University reports your attendance for an in-school deferment.
- Any non in-school deferment request should be submitted to the organization to which you make your loan payments. For Direct Loans and FFEL program loans, contact your loan servicer. For a Perkins Loan, contact the school you were attending when you received the loan.
- If you can’t make your scheduled loan payments, but don’t qualify for a deferment, your loan servicer may be able to grant you a forbearance. With forbearance, you may be able to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue on your subsidized and unsubsidized loans (including all PLUS loans).
- For questions on Deferment or Forbearance of your federal student loans, contact your loan servicer.
- Who is my loan servicer? Check out your information on the National Student Loan Data System (NSLDS)
PRIVATE EDUCATION LOANS
As you pursue your educational goals, Student Financial Aid (SFS) understands that meeting the cost of your education can be a major concern. We first encourage you to complete a FAFSA to determine your eligibility for federal, state, and institutional aid. If your awards are lower than your Tuition, Fees and other costs, you may want to consider a Private Education Loan.
Important: Private education loans are subject to credit approval and may be denied. If denied there may be no substitute funding available. Please carefully consider whether a Private education loan is a viable option.
Your loan application should reflect the amount of funds you wish to borrow for your actual period(s) of enrollment. Approved loan amounts will be disbursed based on your actual enrollment. If you wish to seek a Private Loan for a specific term or semester, please notify SFS at email@example.com. If SFS is not notified the Private education loan award will be split over the academic year (Fall/Spring). You cannot receive more funding than your Cost of Attendance (COA) allows. SFS will include as much of your approved Private education loan as possible in your award.
- The Private education loan self-certification form must be completed by the student and submitted to the lender before disbursement can occur.
- Per federal regulations all lenders of private education loans are required to provide 3 business days from the time you receive the Loan Consummation Disclosure Statement to cancel your private education loan .
- Your private education loan will disburse within 8 to 10 business days. Lenders and schools are prohibited by federal regulations from disbursing funds until the cancellation period has passed. Please contact your lender if you have questions regarding this policy.
DIRECT PLUS LOANS FOR PARENTS
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child’s education expenses as long as certain eligibility requirements are met. To be eligible for a Direct PLUS Loan:
- The parent borrower must be the student’s biological or adoptive parent. The student’s step-parent may apply if they have legally adopted the student.
- The student must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional degree student, or a ward of the court.
- The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the student becomes eligible to receive additional Unsubsidized loan funds.
- The student and parent must be U.S. citizens or eligible non citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the federal student aid programs.
- The parent must complete a Master Promissory Note (MPN) must be completed.
- The student must have a valid FAFSA on file at the school he/she is attending.
DIRECT PLUS LOANS FOR GRADUATE STUDENTS
Graduate or Professional Degree students enrolled at least half-time at an eligible school in a program leading to a degree or certificate may apply for a Direct PLUS loan. To be eligible for a Direct PLUS loan:
- The student must meet general eligibility requirements for federal student aid.
- The student borrower must not have an adverse credit history (a credit check will be done). If the student does not pass the credit check, no additional funds are available.
- A Master Promissory Note (MPN) and (additional) entrance counseling is required for the Direct PLUS loan.
- The student must have a valid FAFSA www.fafsa.ed.gov on file at the school he/she is attending.
- The student must be offered (and specifically accept OR decline) Direct Student Loan funding before accepting any Direct PLUS loan funds.
Click here to find additional information and the on-line application for a Direct PLUS loan.