Federal Direct Loans
The first step in obtaining a Federal Direct Loan is completing the Free Application for Federal Student Aid (FAFSA). A Master Promissory Note and an Entrance Counseling session must also be completed to be eligible for Federal Direct loans. The results of the FAFSA, along with the cost of attendance and other financial aid received are considered when determining award amounts. Aggregate undergraduate Direct Loan borrowing may not exceed $31,000 for dependent students and $57,500 for independent students. The annual Direct Loan limits are presented in the accompanying chart.
| Federal Direct Loan Limits |
| Dependent Students |
|
Subsidized
(or Unsubsidized) |
Unsubsidized |
| Freshman |
$3,500 |
$2,000 |
| Sophomore |
$4,500 |
$2,000 |
| Junior/Senior |
$5,500 |
$2,000 |
| Aggregate |
$31,000
($23,000 Subsidized) |
|
| Independent Students |
|
Subsidized
(or unsubsidized) |
Unsubsidized |
| Freshman |
$3,500 |
$6,000 |
| Sophomore |
$4,500 |
$6,000 |
| Junior/Senior |
$5,500 |
$7,000 |
| Aggregate |
$57,500
($23,000 Subsidized) |
|
The Direct Subsidized Loan interest rate is determined by the U.S. Department of Education. Federal Direct loans may be subject to variable interest rates and origination fees. For additional information on Federal Direct loan interest rates and origination fees visit www.studentaid.gov. Origination fees will reduce the loan amount applied to the student's account.
The federal government pays the interest on the subsidized Federal Direct Loan while the student is enrolled at least half-time and during the six month grace period.
Unsubsidized Federal Direct Loans accrue interest from the day the loan is disbursed until the loan is paid in full. Students may pay the interest during enrollment or allow it to be capitalized.
Repayment of Direct Loans begins six months after the student graduates, leaves school, or drops below half-time enrollment. The standard repayment plan is 10 years, but other repayment plans are available.
At MVNU, students will be awarded their maximum eligibility for Federal Direct Loans. However, loans will not be posted to any student account until all necessary paperwork is submitted and may be canceled if not completed early in the semester.