Federal Direct Loan Program
Subsidized – Eligibility is based on the information you submitted on your Free Application for Federal Student Aid (FAFSA)Interest is paid on these loans by the federal government while you are in-school at least half-time, during the six month grace period after leaving school or dropping to less than half-time enrollment, and during authorized periods of deferment. (Undergraduate students only)
Unsubsidized - Eligibility is based on the information you submitted on your FAFSA. You are responsible for the interest that accrues on these loans while you are in-school, during grace and authorized periods of deferment. However, interest payments may be postponed and the interest will be added to your loan balance (capitalization). At repayment time, the principal balance of your loan will be increased by the amount of interest added.
Undergraduate Students – The amount of your combined subsidized and unsubsidized annual loan eligibility may vary. In general:
|| Dependent Students
Graduate Students – Graduate students may apply for an annual maximum of $20,500 in unsubsidized loans. The cumulative loan limit for graduate students is $138,500 including undergraduate loans.
Loan Repayment: Students receive a six month grace period for Direct Loans. The grace period starts when the student ceases to be enrolled at least half-time. Half-time is defined as 6 credit hours for undergraduate students and 3 credit hours for graduate students. Students who have used up their grace period for prior loans, and are in repayment, do not receive another grace period for loans that were in repayment and would go into immediate repayment when no longer enrolled at least half-time.
Current Interest Rates (7/1/14 - 6/30/15)
Subsidized and Unsubsidized Federal Direct Loans for Undergraduates - 4.66%
Unsubsidized Federal Direct Loans for Graduates - 6.21%
Under federal guidelines, undergraduate students enrolled for less than an academic year must have their Federal Direct Loan eligibility prorated. For example, a student who enrolls for the full year is eligible for $5,500 in loan funds. If that student is an undergraduate and will graduate at the end of the fall semester, which represents 1/4 of the academic year and the student is eligible for 25%, or $1,375. If that student will graduate at the end of the winter, he/she would be eligible for 50%, etc.
How the Loan Application Works
- Direct Loan Entrance Counseling
- A Master Promissory Note (MPN). The MPN is good for 10 years.
Both must be completed before Walsh College will process your loan request.
STEP 2: Register for classes. The Financial Aid Office will not process your loan request until you are registered for classes. Loan applications that are received will be returned to the student if the student is not registered for classes. It will be the student’s responsibility to resubmit the application after registering for classes.
STEP 3: Complete the 2013-2014 Federal Direct Loan Application and return to the Financial Aid Office. Read your award letter and the Financial Aid Student Responsibilities, included with your award letter, to determine the amount you will need to borrow based on your enrollment and resources. Students are not required to apply for a student loan and are not required to apply for the recommended amounts from the award letter. If you need assistance, please contact our office. An award letter is mailed to your home once your financial aid file is complete. If you have not received one, please contact our office for assistance.
STEP 4: If you have successfully completed steps 1 - 3, loan funds are scheduled to apply (disburse) to your student account two weeks after the term begins. You must be enrolled on at least a half-time at the time of disbursement to receive your loan. Student refund checks from excess funds (if any) are direct deposited or mailed within 10 days of disbursement by the Business Office. To sign up for direct deposit see http://www.walshcollege.edu/directdepositrefunds.
The loan application must be received a minimum of 10 business days prior to the first tuition due date in order to not be charged a late fee by the Business Office.