Federal Direct Loan Program

Subsidized

Only undergraduate students are eligible for this type of loan and eligibility is based on the information submitted on the 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.

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.

Loan Limits

Undergraduate Students

The amount of your combined subsidized and unsubsidized annual loan eligibility may vary. In general:

DEPENDENT STUDENTS INDEPENDENT STUDENTS
Sophomore $6,500 $10,500
Junior/Senior $7,500 $12,500
Cumulative $31,000 $57,500

Graduate and Doctoral Students

Graduate and doctoral 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 six 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

Please refer to the Federal Student Aid’s current interest rates.

How the Loan Application Works

Step 1: Complete Entrance Counseling and Loan Agreement

  • Go to www.studentaid.gov and complete:
    • Entrance Counseling
    •  Loan Agreement for a Subsidized/Unsubsidized 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: Financial Aid Offer

  • Read your financial aid offer to determine the amount you will need to borrow based on your enrollment and resources .
  • To receive a direct loan you MUST accept the Federal Direct Loan process available on the Walsh Student Portal.
  • If you wish to use financial aid to cover your books at the Walsh College Bookstore you must complete the Walsh College Bookstore Authorization form available on your student portal at myportal.walshcollege.edu.
  • It is important that you understand the financial aid offered to you by reading the Conditions of Financial Aid and Satisfactory Academic Progress.
  • Students are not required to apply for a student loan and are not required to apply for the recommended amounts from the financial aid offer. If you need assistance, please contact our office.

A financial aid offer is emailed to your Walsh email once your financial aid file is complete. If you have not received one, please contact our office for assistance.

Step 4: Loan Funds Disbursed

  • 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.  > Sign up for direct deposit 
  •  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.