**Attention Financial Aid Students : Changes are coming to Federal Student Loans July 1, 2012**
Undergraduate Students Interest rates on subsidized loans for undergraduate students will remian at 3.4% for any loan with a first disbursement after July 1, 2012. In addition, students will no longer be eligible for the interest subsidy during the grace period prior to repayment on any new loan.
Graduate Students Graduate students will no longer be eligible for Direct Subsidized loans.
In addition for both Undergraduate and Graduate students, the upfront interest rebate of one-half of one percent that was provided to Direct Loan Borrowers at the time of disbursement will no longer be provided. The fee for Direct Loans will be 1.0%.
On March 30, 2010 the President signed new legislation to reform the existing Federal Student Loan Programs. This means that effective July 1, 2010 all federal student loans must be originated as Federal Direct Loans by the U.S. Department of Education and the bank based Federal Stafford Loan program will end.
Before the Financial Aid Office will originate a Federal Direct Loan on your behalf, you must complete a Federal Direct Master Promissory Note (MPN) at www.studentloans.gov. You will need the four (4) digit PIN number used to file your Free Application for Federal Student Aid (FAFSA) to access and sign your MPN. In addition to a MPN, you need to complete loan entrance counseling at www.studentloans.gov.
Once the Financial Aid Office has confirmed you have completed the Federal Direct Master Promissory Note and you have done entrance counseling, your loan will be originated. You must continue to meet all eligibility criteria in order for your loan to be disbursed. Loans will be disbursed once a week on Wednesdays. After your loan has been originated you can view and print an electronic disclosure statement (s) at www.studentloans.gov.
Please contact our office at 248-823-1360 or at finaid@walshcollege.edu if you have any questions.
Federal Direct Loan Program
Loan Maximums per Academic Year:
| Dependent Undergraduates: |
$7,500* |
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Maximum $5,500 Subsidized |
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| Independent Undergraduates: |
$12,500 |
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$5,500 Subsidized and $7,000 Unsubsidized |
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| Graduate Students: |
$20,500 |
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$8,500 Subsidized and $12,000 Unsubsidized |
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Current Interest Rates (7/1/12 - 6/30/13):
Loans guaranteed on or after 07/01/06 have fixed rates.
Subsidized Federal Direct Loans for Undergraduates - 3.4%
All Unsubsidized Federal Direct Loans - 6.8%
*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.
Forms: 2012-2013 Federal Direct Loan Request Form
Entrance and Exit Interview Sessions:
Mandatory student loan entrance and exit interview sessions can now be done on-line at: www.studentloans.gov.