Undergraduate Student Grants and Loans
Federal Direct Subsidized Loan
Eligibility
- Complete FAFSA
- Demonstrate financial need.
- Awarded to undergraduate students
- Must enroll at least halftime.
- Must complete a *Direct Loan Master Promissory Note and Entrance Interview prior to first disbursement.
- Exit Interview must be completed if student drops below half time or ceases enrollment.
Interest Rates
- Fixed interest rate is 3.4% between July 1, 2012 and June 30, 2013
- U.S. Department of Education pays interest while borrower is in school, during grace, and during deferment periods through June 30, 2012. From July 1, 2012 to June 30, 2014, the federal government will not cover the interest during the grace periods. Interest will accrue during the grace period and be capitalized if unpaid by the borrower.
Annual Loan Limits
| Annual Loan Limits - Direct 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 |
| Preparatory Coursework (for enrollment in an undergraduate program) | $2,625 | $0 | $2,625 |
| Preparatory Coursework (for enrollment in a graduate or professional program) | $5,500 | $0 | $5,500 |
| Teacher Certification Coursework | $5,500 | $0 | $5,500 |
| 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 |
| Preparatory Coursework (for enrollment in an undergraduate program) | $2,625 | $6,000 | $8,625 |
| Preparatory Coursework (for enrollment in a graduate or professional program) | $5,500 | $7,000 | $12,500 |
| Teacher Certification Coursework | $5,500 | $7,000 | $12,500 |
Aggregate Loan Limits
| Aggregate Loan Limits - Direct Loan | |||
|---|---|---|---|
| Student Type | 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 |
Repayment
Interest subsidized by U.S. Department of Education while borrower is in school at least half-time.
Important Details *
Once the Direct loan has been awarded and guaranteed, the Department of Education will send you a notification to complete a Master Promissory Note (MPN). Loan funds will not be disbursed until the borrower completes the MPN.
You are only required to complete an MPN one time as it can be used for up to 10 years of borrowing for educational expenses. A new MPN must be signed if you cease enrollment for one full academic year or if your MPN has expired after 10 years. Each academic year, all students using the MPN will be notified of their loan eligibility. You may accept, reduce, or decline your loan(s) in NSU's WebSTAR system.