Federal Direct Loans
Effective 2010-2011 Marist College will participate in the William D. Ford Direct Lending Program. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. The FAFSA must be completed before a Direct Subsidized or Unsubsidized Loan can be awarded.
Federal Direct Subsidized Loan
Direct Subsidized Loans for Traditional Undergraduate and Adult Undergraduate Students disbursed after July 1, 2012 will be set at a fixed rate of 3.4% until June 30,2013. Principal and interest are repayable beginning six months after graduation, or after the student ceases to be enrolled at least half-time. Interest on this loan is paid by the Federal Government while the student is enrolled at least half time in a degree program. New Federal provisions eliminates the interest subsidy provided during the six-month grace period for Direct Subsidized Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. Students receiving a subsidized loan during this timeframe will be responsible for the interest that accrues on the loan during the grace period. If a student does not pay the interest accrued, the interest will be added (capitalized) to the principal amount of their loan when the grace period ends.
Direct Subsidized Loans are awarded to students with financial need determined by the FAFSA (Free Application For Federal Student Aid) form.
Federal Direct Unsubsidized Loan
For the Direct Unsubsidized Loans, the student is responsible for interest payments while in school. (You have the option to defer payments of interest and principal until after you graduate.) The interest rate for this loan is set at a fixed rate of 6.8%. Repayment begins six months after graduation, or after you cease to be enrolled at least half-time. Students are awarded a Direct Unsubsidized Loan if their FAFSA information determines they have no financial need.
Important Direct Loan Information:
A student must be at least half time status (6 credits) at all times to be eligible for this loan.
- If you complete a Direct Loan Master Promissory Note (MPN), as a freshman or during your first semester at Marist you may not have to complete another application for 10 years, or until you enter another College.
- The Direct Loan Master Promissory Note (MPN) is a promissory note under which you may receive multiple subsidized and unsubsidized loans over a maximum ten-year period.
- All Direct Loans are subject to fees (up to 1.0 percent). The fees will be deducted from the loan proceeds prior to disbursement. Disbursements are sent directly to Marist College, two per loan period.
- Direct Loan funds will be transferred electronically to your college account. These funds must be credited to your account in the Office of Student Financial Services within 3 days of disbursement to the college or your loan will be canceled and your funds returned to the Department of Education.
- First-time borrowers of a Direct Loan must complete an entrance counseling session before you receive your loan. This ensures that you have received loan counseling and understand your responsibilities.
- All borrowers of a Direct Loan must complete an exit counseling session prior to withdrawal, transfer, leave of absence, or graduation from the college. This ensures that you have received loan counseling and understand your rights and responsibilities.
- Students changing from a Freshmen to Sophomore or from Sophomore to Junior status may be entitled to additional loan monies as per the Federal Direct Loan Limits. Please contact the Office of Student Financial Services for further information regarding this increase.
- If you choose to withdraw or take a leave of absence from Marist College, you must notify the appropriate offices. Please contact the Center for Advising and Academic Services to complete an official withdrawal/leave of absence form and then contact the Office of Student Financial Services to cancel your financial aid or complete a Title IV calculation, if eligible. Please also notify the housing department if you have a housing arrangement and the Registrar for official transcripts, if necessary.
- Please remember that a Federal Direct Loan is a loan, not a grant. You must repay the funds you borrow, plus interest and fees. If you have any questions, do not hesitate to contact the Office of Student Financial Services.
- The U.S. Department of Education's National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access NSLDS, go to www.nslds.ed.gov. All Title Iv loans are reported to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
- Your Federal Direct loan is automatically processed for the amount shown as part of your financial aid package, unless you notify the Office of Student Financial Services otherwise.
- Please review the new Federal Direct Loan Limits effective for Stafford loans first disbursed on or after July 1, 2008
FEDERAL DIRECT LOAN APPLICATION PROCESS
First time Marist borrowers must complete the Direct Loan Entrance Counseling and Master Promissory Note. Please click on the link below to access the direct lending site. Sign in using your FAFSA PIN to complete this requirement online.