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Entrance Counseling
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Loan Basics
Things You Need to Know
Free Money First
Types of Federal Student Loans
Loan Limits
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Sign in to view your federal student loan data, notify schools of counseling
completion, and save proof of counseling completion. If you are not signed in, you
cannot meet requirements for completing counseling.
Your Student Loans
Estimated Student Loan Balance:
$
0
Borrow Only What You Need
You must repay the full amount of your federal student loans, even if you:
Don't complete your program of study.
Can't find employment after graduation.
Aren't satisfied with or didn't receive the education or other services that you
paid for with your federal student loans.
Did you know?
When you are signed in, we automatically
display your federal student loan data
currently available in the National Student
Loan Data System (NSLDS) . You may
also add a loan that is not displayed.
You may visit NSLDS anytime to view
your federal student loan information.
Control how much you borrow:
Borrow as a last resort and only borrow what you need.
You don't have to borrow the maximum amount of federal student loans each
year; you can request a lower amount through your financial aid office.
Add loans below:
Your estimated student loan balance should reflect what you think you'll owe when you graduate. Use the "Add Loan"
feature to add the loan amount(s) you think you'll owe by the time you graduate. You can use the following averages:
Average debt for a single year of college: $6,707.50
Average debt of a 4-year college student: $26,830*
Average federal student loan interest rate: 6.8%
*College expense data is publicly available on-line at College Navigator.
Additional Loans
Add Loan
$
0
Use the calculator tool to estimate your total loan obligation upon graduation.
The listing above does not include your private student loans and may not reflect all of your federal student loans. You may add any
student loans not listed.
Loan Basics
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William D. Ford Federal Direct Loan (Direct Loan) Program - Student loans provided by the U.S. Department of Education
to enable a student to pay for education after high school. Eligible students borrow directly from the U.S. Department of Education
to attend participating schools. Direct Loans include the following types of federal student loans: Direct Subsidized Loans, Direct
Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. You repay your Direct Loan(s) to the U.S. Department of
Education.
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Example assuming Direct Unsubsidized Loans at 6.8% interest using a standard 10 year repayment plan. Loan fee=1%.
Student Loan - Money you borrow for
school and must repay with interest.
Principal - The loan amount plus any
capitalized interest. During repayment,
the principal is usually referred to as the
outstanding (unpaid) principal balance.
Interest - The cost to borrow money.
Interest is calculated as a percentage of
the outstanding principal balance.
Disbursement - A portion of a federal
student loan that the school pays out by
applying the funds to the student's
school account or by paying the borrower
directly. Students generally receive their
federal student loans in more than one
disbursement.
Repayment - To pay back money you
borrowed by making scheduled payments
to the loan servicer.
Capitalized Interest - Unpaid interest
that has been added to the outstanding
principal balance of a loan. Interest is
charged on the increased outstanding
principal balance and, under most
repayment plans, will increase your
monthly payment amount and the total
amount you repay over the life of the
loan.
Loan Servicer/Federal Loan Servicer
- An entity that collects payments on a
federal student loan, responds to
customer service inquiries, and performs
other administrative tasks associated
with maintaining a loan on behalf of a
loan holder. A federal loan servicer is a
loan servicer for the U.S. Department of
Education.
Loan Fee - A fee charged for each
federal student loan you receive that is a
percentage of the total loan amount you
are borrowing (gross amount). The loan
fee is deducted proportionately from each
disbursement of your loan. This reduces
the actual loan amount you receive (net
amount). You must repay the gross
amount. You can find your loan fee
amount in a disclosure statement you
will receive before the first disbursement
of your federal student loan.
Repayment Period - The maximum
time period over which you must repay
your federal student loan. The repayment
period may range from 10 years to 30
years, depending on loan amount, loan
type, and repayment plan.
Loan Holder - The entity that holds your
loan promissory note and has the right
to collect from you. For Direct Loans,
your loan holder is the U.S. Department
of Education. Throughout this counseling
session, references to your loan servicer
mean the loan servicer, federal loan
servicer, or the loan holder.
Things You Need to Know
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Interest Accrual
Remember!
Federal student loans made after June 30, 2006 have fixed interest rates.
Direct Loans are "simple daily interest" loans. This means that interest accrues
daily. The amount of interest that accrues per day is calculated by dividing the
interest rate on your loan (as a decimal) by the number of days in a year, and
then multiplying that by the outstanding principal balance.
For example, on a $10,000 Direct Unsubsidized Loan with a 6.8% interest rate,
the amount of interest that accrues per day is $1.86:
(0.068 / 365) * $10,000 = $1.86
Capitalized Interest
If you are in a deferment
or forbearance
for 6 months, the loan will accrue
interest totaling $340.
If you dont pay the interest, it is capitalized (added to the outstanding principal
balance). You will be charged interest on the increased outstanding principal
balance of $10,340. The amount of interest that accrues per day will increase
to $1.93:
(0.068 / 365) * $10,340 = $1.93
Under most repayment plans, this capitalized interest will increase your monthly
payment and the total amount you pay over the life of the loan.
Master Promissory Note
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For each federal student loan that you
receive under an MPN, you'll receive a
disclosure statement that provides specific
information about that loan, including the
loan amount, loan fees, and the expected
disbursement dates and amounts. Other
disclosures will be provided to you
throughout the loan process.
StudentLoans.gov
A binding legal document that you must sign before you may receive a federal
student loan. There is one MPN for Direct Subsidized/Unsubsidized Loans and a
different MPN for Direct PLUS Loans.
The MPN can be used to make one or more loans for one or more academic
years (up to 10 years). It lists the terms and conditions under which you agree
to repay the loan and explains your rights and responsibilities as a borrower.
It's important to read and save your MPN because you'll need to refer to it later
when you begin repaying your loan or at other times when you need
information about provisions of the loan, such as the requirements for a
deferment or forbearance.
If you do not want to receive more than one federal student loan under the
same MPN, you must notify your school or your loan servicer in writing each
academic year.
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Half-Time Enrollment
You must be enrolled in school at least half-time to receive Direct Loans and
and to keep your loan(s) out of repayment.
If your enrollment in school drops below half-time, you will receive a six-month
grace period
before your first loan payment is due.
For undergraduate students, federal regulations set the following minimum
standards for half-time enrollment include:
Schools that measure academic progress in credit hours and use semesters,
trimesters, or quarters, half-time is at least 6 semester hours or quarter
hours per term.
Schools that measure academic progress in credit hours but do not use
terms, half-time is at least 12 semester hours or 18 quarter hours per
academic year.
Schools that measure academic progress in clock hours, half-time is at least
12 clock hours per week.
At schools that measure academic progress in credit hours and use terms other
than semesters, trimesters, or quarters, the minimum number of credit hours
for half-time enrollment is determined based on the number of weeks of
instructional time in the term, the number of weeks of instructional time in the
program of studys academic year, and the number of credit hours in the
programs academic year.
If you drop below half-time enrollment and then resume enrollment on at least
a half-time basis before the end of the 6-month grace period, your Direct Loan
will not enter repayment and you will regain a full 6-month grace period when
you leave school or drop below half-time enrollment again.
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Acceleration
Demand for immediate repayment of your entire federal student loan.
This can happen when you receive federal student loan money, but do not enroll
at the school that determined you were eligible to receive
at least half-time
the federal student loan.
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Free Money First
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Finance your education with free money first. You don't have to repay grants,
scholarships or work-study.
Your financial aid office determines your eligibility for each type of federal student
aid, based on the Free Application for Federal Student Aid (FAFSA) .
1. Apply for Grants and Scholarships
Explore federal grant
programs.
Search for scholarships.
See if your school, state, or other organizations offer scholarships or grants.
Consider scholarships for U.S. military service, educational support offered
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Remember!
The Free Application for Federal Student
Aid (FAFSA ) is free! There is no need to
pay for completing the FAFSA. Go to the
FAFSA site to complete an application or
forecast your eligibility for aid for FREE!
StudentLoans.gov
by the military, and educational benefits for veterans.
2. Work Part Time
Balance work hours with your studies.
Explore job opportunities on or off campus.
Get a job through a work-study program. Contact your financial aid office.
3. Direct Subsidized Loans
If you're eligible, take advantage of Direct Subsidized Loans. The
government pays the interest on a Direct Subsidized Loan while you are in
school and during certain other periods in most cases.
Types of Federal Student Loans
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Direct Loans include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. You
may be eligible for other federal student loans, such as Perkins loans. For a list of all federal aid programs and loans, visit "Types
of Aid" on StudentAid.gov and check out our video.
Direct Subsidized
Loans
Undergraduate students
with financial need
Who may
receive this
loan?
What is the
Current
Interest
Rate?
Direct Unsubsidized
Loans
Undergraduate students
and graduate or
professional students
Direct PLUS Loans
Graduate or professional
students and parents of
dependent undergraduate
students.
Undergraduate and
graduate or professional
students with exceptional
financial need
An adverse credit history
might affect your eligibility.
Tell Me More
3.86% for loans with a
first disbursement date
after June 30, 2013 and
before July 1, 2014
Undergraduate Students
3.86% for loans with a
first disbursement date
after June 30, 2013 and
before July 1, 2014
6.41% for loans with a
first disbursement date
after June 30, 2013 and
before July 1, 2014
5.0%
Graduate/Professional
Students
5.41% for loans with a
first disbursement date
after June 30, 2013 and
before July 1, 2014
While you are enrolled at
least half-time .
You pay all interest during
all periods.
You pay all interest during
all periods.
During the grace period.
During deferment
The
government
pays your
interest...
Federal Perkins Loans
While you are enrolled at
least half-time .
For 9 months after you
graduate or drop below
half-time enrollment.
Deferment periods.
periods.
During certain periods of
repayment under the
Income-Based and Pay
As You Earn Repayment
Plans.
Note: For Direct Subsidized
Loans with a first
disbursement date after
June 30, 2012 and before
July 1, 2014, you are
responsible for paying the
interest that accrues
during the grace period.
What are
the loan
fees?
When am I
required to
begin
making
payments?
1.072% for loans with a
first disbursement date
after November 30, 2013
1.072% for loans with a
first disbursement date
after November 30, 2013
4.288% for loans with a
first disbursement date
after November 30, 2013
N/A
6 months after you
graduate or drop below
half-time enrollment
6 months after you
graduate or drop below
half-time enrollment
Direct PLUS loans enter
repayment when they are
fully disbursed (paid out),
but your loan will be placed
into deferment while you
are in school at least halftime and for an additional
6 months after you
graduate or drop below
half-time status.
9 months after you
graduate or drop below
half-time enrollment
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Direct Subsidized Loan Time Limitation
If you receive your first federal student loan after June 30, 2013, there is a limit on the maximum period of time (measured in
academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more
than 150% of the published length of your program. This is called your "maximum eligibility period." Learn more about the Direct
Subsidized Loan Time Limitation.
Loan Limits
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Subsidized and Unsubsidized Loan Limits
For Direct Subsidized Loans and Direct Unsubsidized Loans, there are limits on the
maximum amount you may borrow for an academic year (annual loan limits) and
the maximum amount you may borrow in total for undergraduate and graduate
study (aggregate loan limits).
The actual loan amount you are eligible to receive is determined by your school,
and is based on your academic level, whether you are dependent or independent,
and other factors such as:
The length of your program;
Your cost of attendance;
Your Expected Family Contribution
Did you know?
If you are enrolled in certain health
professions programs, you may qualify for
higher annual and aggregate limits on
Direct Unsubsidized Loans. Contact your
school's financial aid office for
information.
(EFC);
Other financial aid you receive; and
Your remaining eligibility under the annual and aggregate loan limits.
The actual amount you receive for an academic year may be less than the maximum annual amounts shown in the chart below.
For undergraduate students, the annual loan limits include both Direct Subsidized and Unsubsidized Loans for the same academic
year period.
Dependent Students
Independent Students
Year
(except students whose parents are unable to
obtain PLUS Loans)
(and dependent undergraduate students whose
parents are unable to obtain PLUS Loans)
First-Year
Undergraduate Annual
Loan Limit
$5,500-No more than $3,500 of this amount may be
in subsidized loans.
$9,500-No more than $3,500 of this amount may be
in subsidized loans.
Second-Year
Undergraduate Annual
Loan Limit
$6,500-No more than $4,500 of this amount may be
in subsidized loans.
$10,500-No more than $4,500 of this amount may
be in subsidized loans.
Third Year and Beyond
Undergraduate Annual
Loan Limit
$7,500 per year-No more than $5,500 of this
amount may be in subsidized loans.
$12,500-No more than $5,500 of this amount may
be in subsidized loans.
Graduate or
Professional Student
Annual Loan Limit
Not Applicable
(all graduate and professional degree students are
considered independent).
$20,500 (unsubsidized only).
Subsidized and
Unsubsidized
Aggregate Loan Limit
$31,000-No more than $23,000 of this amount may
be in subsidized loans.
$57,500 for undergraduates-No more than $23,000
of this amount may be in subsidized loans.
$138,500 for graduate or professional students-No
more than $65,500 of this amount may be in
subsidized loans. The graduate aggregate limit
includes all federal loans received for undergraduate
study.
Notes:
The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may
have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect
July 1, 2010, no further loans are being made under the FFEL Program.
Effective for periods of enrollment beginning after June 30, 2012, graduate and professional students are no longer eligible
to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate or professional students
includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began
before July 1, 2012, or for prior undergraduate study.
Direct PLUS Loan Limits
You can borrow up to the school's cost of attendance (determined by the school), minus all other financial assistance you receive.
Your school will determine the actual Direct PLUS Loan amount that you are eligible to receive.
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