What are Federal Direct Loans?
Eastern Michigan University will offer Federal Direct Stafford/Ford Loans (Federal Direct Subsidized and Unsubsidized Loans) beginning Fall 2008. When you borrow a Federal Direct Loan at EMU, you will borrow from the federal government by receiving funds directly through EMU.
Applying for a Federal Direct Loan
When you complete the Free Application for Federal Student Aid or the Renewal Free Application for Federal Student Aid, you are applying for all of the aid programs for which you may be eligible, including direct loans.
If a William D. Ford Federal Direct Stafford Loan (subsidized or unsubsidized) has been offered to you as part of your aid package it will appear on your Financial Aid Award Letter. You can accept or decline these loans just as you would any other aid program assistance offered to you. Additionally, if you are accepting all or part of the loan, you are required to complete and sign a Master Promissory Note and return it to the Office of Financial Aid.
Federal Direct Student Loan Limits
Annual Loan Limits - Stafford Loan
|
Dependent Students
(whose parents were not denied a PLUS loan) |
Combined Base Limit for Subsidized and Unsubsidized Loans |
Additional Limit for Unsubsidized Loans |
Total Limit for Unsubsidized Loans (minus subsidized amounts) |
| First-Year Undergraduate (Freshman) |
$3,500 |
$2,000 |
$5,500 |
| Second-Year Undergraduate (Sophomore) |
$4,500 |
$2,000 |
$6,500 |
| Third-Year and Beyond Undergraduate (Junior, Senior) |
$5,500 |
$2,000 |
$7,500 |
|
Independent Students
(and dependent students whose parents were denied a PLUS loan) |
Combined Base Limit for Subsidized and Unsubsidized Loans |
Additional Limit for Unsubsidized Loans |
Total Limit for Unsubsidized Loans (minus subsidized amounts) |
| First-Year Undergraduate (Freshman) |
$3,500 |
$6,000 |
$9,500 |
| Second-Year Undergraduate (Sophomore) |
$4,500 |
$6,000 |
$10,500 |
| Third-Year and Beyond Undergraduate (Junior, Senior) |
$5,500 |
$7,000 |
$12,500 |
| |
| Graduate and Professional Students |
Combined Base Limit for Subsidized and Unsubsidized Loans |
Additional Limit for Unsubsidized Loans |
Total Limit for Unsubsidized Loans (minus subsidized amounts) |
| Graduate and Professional Students |
$8,500 |
$12,000 |
$20,500 |
| |
Aggregate Loan Limits - Stafford Loan
|
|
Combined Base Limit for Subsidized and Unsubsidized Loans |
Additional Limit for Unsubsidized Loans |
Total Limit for Unsubsidized Loans (minus subsidized amounts) |
| Dependent Undergraduate Students (whose parents were not denied a PLUS loan) |
$23,000 |
$8,000 |
$31,000 |
| Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) |
$23,000 |
$34,500 |
$57,500 |
| Graduate and Professional Students |
$65,500
(including undergraduate Stafford loans) |
$73,000 |
$138,500 |
| |
Interest Rates
Loan Type |
Grade
Level |
Direct Loans |
| 7/1/2006 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
| Subsidized Loans |
Undergraduate |
6.80 |
6.0 |
| Graduate |
6.80 |
6.80 |
| Unsubsidized Loans |
Undergraduate |
6.80 |
6.80 |
| Graduate |
6.80 |
6.80 |
General Requirements
Once you are awarded a Federal Direct Student Loan, you must fulfill certain conditions before loan funds can be credited to your account. These include, but may not be limited to:
Completion of a Loan Entrance Counseling An Entrance Counseling is actually a counseling session which is designed to help you better understand your obligation as a borrower and provides other useful information on the loan process. Entrance Interviews are required for all of first time, first-year borrowers. Click here to complete Entrance Counseling
Signing the Master Promissory Note The Direct Stafford Loan borrowers who wish these funds to credit to their term bill, must complete a Master Promissory Note (MPN) at http://dlenote.ed.gov using your federal Personal Identification Number (PIN). The same PIN used to complete your online FAFSA is used to sign your MPN. To obtain a PIN, visit www.pin.ed.gov .
Loan Repayment
The Direct Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. Direct Loans are funded by the U.S. Department of Education through your school and are managed by the Direct Loan Servicing Center, under the supervision of the Department. The Direct Loan Program allows you to choose your repayment plan and to switch your plan if your needs change.
Stafford loan repayment begins 6 months after you graduate, fall below half time (6 credit hours for Undergraduate and 4 hours for Graduate Students), or leave school. If you return to school or if your enrollment increases to at least half time, there are deferment options that you could qualify for which will delay your repayment. It is important that you contact the Direct Loan Servicing Center if your enrollment changes or if you are having problems making your payments.
To find out more about repayment options before receiving a Direct Loan, borrowers may contact their school's financial aid office or the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you currently have a Direct Loan and would like the exact payment amount on your loan, you can find it out online at the website for the Direct Loan Servicing Center or you can call the center at 1-888-447-4460.
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