Federal Direct Subsidized/Unsubsidized Loans

*Must be enrolled for at least 6 degree seeking credits per semester

Available in two varieties depending upon level of need:

Subsidized

• Interest is subsidized (or paid by the goverment) while student is in school. Loan interest rates apply once student is no longer enrolled at least half time.
• Only available to undergraduate students.

Unsubsidized

• Interest accumulates while in school although payment can be postponed until the end of the 6 month grace period
• The cost of borrowing is less if you make interest payments while in school

Additional Federal Direct Unsubsidized Loan

This additional student loan is added by request when a potential parent borrower has applied for and been denied the Federal Direct Plus Loan for that academic year.  For students who have earned less than 60 credits, an additional $4,000.00 is available per academic year.  For students who have earned 60 credits or more, an additional $5,000.00 is available per academic year.  The amount requested is split equally between the Fall and Spring semesters.  Aggregate loan limits for dependent students will be adjusted in proportion to the number of years the student qualifies for this loan, but will not exceed the federal maximums.

Additional Information

• Loan Interest Rates
• Loan Origination Fees (collected when the loan is disbursed to Geneva College)
• For all new borrowers, the 150% limitation rule is in place. A borrower who is eligible for a subsidized loan will reach their subsidized limit at 150% of a programs length of study. For example, if a borrower is enrolled in a 4-year
  bachelor′s degree program, the maximum period for which they can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years). For additional information, please refer the the Department of Education's announcement.
•  Amount qualifying for interest subsidy is limited, and in some cases the entire amount will be unsubsidized.  This is determined based on financial need and other criteria according to the FAFSA
•  Graduate students are eligible for unsubsidized loans only.

Amounts

Year in School	Dependent Student	Independent Student
Freshmen (0-27 Credits)	$5,500	$9,500
Soophomre (28-59 Credits)	$6,500	$10,500
Junior or Senior (60+ Credits)	$7,500	$12,500
Grad Student		$20,500

 

1. Repayment begins 6 months after enrolled less than half-time (6 credits) or 6 months after the student graduates.
2. Students are encouraged to begin repayment as soon as possible. To identify the loan servicer (company that, on behalf of the US Dept of Education, handles your loan repayment) and get their contact information, log into nslds.ed.gov.

Steps to Receive a Direct Loan:

1. File the (FAFSA) and respond to financial aid award notfication (sent by email)
2. Complete the Federal Entrance Counseling by logging into https://studentaid.gov 
3. Complete the Federal Direct Loan Master Promissory Note (MPN) by logging into https://studentaid.gov 

• Entrance Counseling and MPN Instructions (.PDF)

For helpful loan repayment calculators and other helpful resources, visit www.geneva.edu/financial_literacy