Financial Aid

Student Loans

What's NEW for 2014-2015?

Direct Loan Interest Rates for 2014-2015

On Tuesday, May 7, 2014, the Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 2.612%. The chart below displays the resultant interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2014 and before July 1, 2015.

Federal Direct Student Loans 2014-2015 Interest Rates
Effective for Loans First Disbursed on or after July 1, 2014 and
prior to July 1, 2015

Loan Type

Borrower Type

Index
10-Year Treasury Note

Add-On

Fixed Interest Rate

Direct Subsidized Loans

Undergraduate Students

2.612%

2.05%

4.66%

Direct Unsubsidized Loans

Undergraduate Students

2.612%

2.05%

4.66%

Direct Unsubsidized Loans

Graduate/Professional Students (Not offered at ASU-Beebe)

2.612%

3.60%

6.21%

Direct PLUS
Loans

Parents of Dependent Undergraduate Students and Graduate/Professional Students

2.612%

4.60%

7.21%

Subsidized Loan Limitation – A maximum of three years of subsidized loan eligibility has been implemented for two-year associate degrees and for one and a half years for students in one-year certificate programs for "new borrowers" on or after July 1, 2013.

FEDERAL DIRECT STUDENT LOANS

You must be enrolled in 6 credit hours at the time of awarding and at the time of disbursement to be eligible for a federal direct student loan.

  • The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender. The loan funds are delivered to the school for eligible students to help cover their educational costs. These funds must be repaid.

  • Direct Subsidized Loans are loans made to eligible students who have demonstrated financial need as determined by federal guidelines. The government pays the interest on these loans as long as the student remains enrolled in 6 credit hours or more. Interest does not accrue during enrollment, but does accrue during the 6-month grace period.

  • Direct Unsubsidized Loans are loans made to eligible students but in this case, the student does not have to demonstrate financial need for the loan. The government does not pay the interest on these loans and interest accrues during enrollment as well as during the 6-month grace period.

  • Direct PLUS Loans are loans made to parents of dependent undergraduate students and graduate or professional students to help pay for education expenses not covered by other financial aid.

HOW TO APPLY FOR A FEDERAL DIRECT LOAN:

Step 1: You must complete and submit a Free Application for Federal Student Aid (FAFSASM).

Step 2: Before you receive your loan funds, you will be required to complete entrance counseling, and sign a Master Promissory Note (MPN), agreeing to the terms of the loan.

To complete the Master Promissory Note, Entrance Counseling, Or Exit Counseling, go to www.studentloans.gov. Students who have completed entrance counseling for another school must complete another entrance counseling session for ASU-Beebe.

Step 3: Students who wish to receive federal loans at ASU-Beebe must complete and submit to the financial aid office, a 2014-15 ASU-Beebe Loan Certification form and are encouraged to review the Financial Awareness Counseling session prior to the first loan disbursement. Parents interested in the Parent Loan (PLUS), must complete and submit to the financial aid office, the PLUS Loan Certification Request Form.

Questions, contact the Financial Aid staff at (501) 882-8845 or email finaid@asub.edu.

Important Withdrawal Information (Voluntary or Involuntary): Students who are no longer attending school or drop below 6 credit hours in one semester are required to complete Exit Counseling as the grace period will begin. www.nslds.ed.gov

 


 

Glossary of Loan Terms:

Entrance Counseling: A mandatory information session which takes place before you receive your first federal student loan, and explains your responsibilities and rights as a student borrower.

Master Promissory Note: A binding legal document that you must sign when you get a federal student loan. The MPN can be used to make one or more loans for one or more academic years (up to 10 years). The MPN lists the terms and conditions under which you agree to repay the loan and it 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 deferments or forbearances.

Exit Counseling: A mandatory information session which takes place when you graduate or attend school less than half-time that explains your loan repayment responsibilities and when repayment begins.

Disbursement (disburse or disbursed):  Payment of the loan funds to the borrower by the school. Students generally receive their federal student loan in two or more disbursements.

Grace Period: A period of time after borrowers graduate, leave school, or drop below half-time enrollment where they are not required to make payments on certain federal student loans. Some federal student loans will accrue interest during the grace period, and if the interest is unpaid, it will be added to the principal balance of the loan when the repayment period begins.

 


 

PRIVATE LOANS:

Please review the ASU-Beebe Private Loan Process and submit Page 2 to the financial aid office, then complete your private loan application through FASTChoice.

You must submit the Private Loan Self-Certification Form to your lender of choice. ASU-Beebe does not receive this form.
 

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