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STUDENT LOAN INFORMATION PAGE
URGENT UPDATE: Sequester Impacts Loans
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What's NEW for 2013-2014?
Subsidized Loan Limitation - For "new borrowers" on or after July 1, 2013, a maximum of 3 years of subsidized loan eligibility will be implemented for two-year associate degrees and for 1 ½ years for students in one-year certificate programs.
What is 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 the enrollment, but does accrue during the 6 month grace period. Current interest rate is 3.4%.
- 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. Current interest rate is 6.8%.
- 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. Current interest rate is 7.9%.
FEDERAL DIRECT STUDENT LOANS
You must be enrolled in 6 credit hours to be eligible for a federal direct student loan to be awarded and you must be enrolled in 6 hours at the time of disbursement.
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 2013-14 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.
You may contact Financial Aid Staff should you have questions at 501-882-8845 or email us at www.finaid.edu
Important Withdrawal Information (Voluntary or Involuntary): Students who are no longer attending school or drop below 6 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 that 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.
You must submit the Private Loan Self-Certification Form to your lender of choice. ASUB does not recieve this form.