Dr. Hill and students

Direct Loan Information

Federal Direct Loans for Students

Direct loans are federally regulated low-interest loans provided by the U.S. Department of Education. The student must be degree-seeking, enrolled at least half-time (6 hours) and maintain satisfactory academic progress. Financial need is not necessary but the Free Application for Federal Student Aid (FAFSA) is required.

Subsidized loans are for students with financial need, as determined by the results of the FAFSA and other financial aid (grants and scholarships) for which a student is deemed eligible. Subsidized loans do not accrue interest while a student is enrolled at least half-time.

Unsubsidized loans are not awarded on the basis of financial need. Interest will be charged on the loan from the time of the first disbursement until the loan is paid in full. Also, the interest will capitalize; in other words, the interest will be added to the original principal and at a higher rate. Therefore, we recommend making a minimum of interest-only payments while enrolled in school.

How to Apply for a Direct Student Loan
The FAFSA is required for both subsidized and unsubsidized Federal Direct Loans. Our office will automatically determine your eligibility and notify you, via an award notification. We will first process the maximum subsidized eligibility and then unsubsidized.

To complete the loan process, you will need to:

1. Complete required Entrance Loan Counseling at www.studentloans.gov.

2. Complete a Master Promissory Note (MPN) at www.studentloans.gov by using your FAFSA PIN as the electronic signature. You will also need your PIN and other identifiers to log-in to the website.

Loan Limits
The maximum amount you can borrow each academic year depends on your grade level and dependency status. See the chart below for annual and lifetime borrowing limits. The amounts below are the maximum values - you may not be eligible for the maximum annual amounts due to other financial aid that you receive. 

Undergraduate Annual
Loan Limits

   Dependent Student  

   Independent Student  

 1st Year  $5,500
 (up to $3,500 Sub)
 (up to $3,500 Sub)
 2nd Year  $6,500
 (up to $4,500 Sub)
 (up to $4,500 Sub)
 3rd, 4th, 5th Year  $7,500
 (up to $5,500 Sub)
 (up to $5,500 Sub)
 Undergraduate Loan Limits  $31,000
 (up to $21,000 Sub)
 (up to $21,000 Sub)  

Interest Rate, Fees and Benefit   

Loan Type

 Interest Rate for Loan Disbursed 7/1/2018 - 6/30/2019

Origination Fee for Loan Disbursed 7/1/2018 - 6/30/2019

Grace Period



Subsidized 5.045% Fixed for Graduates 1.062% Six Months Student 6 month grace period starts after student graduates, leaves school, or drops below half-time. Payment not due until grace period ends.
Unsubsidized 5.045% Fixed for All Borrowers

Master Promissory Note
The electronic Master Promissory Note represents the loan application as well as the legal, binding document whereby the student agrees to repay the loan

Federal Direct PLUS Loans for Parents

Parents of dependent undergraduate students may apply for assistance through the Federal Direct PLUS Loan Program for Parents. Students must be enrolled at least half-time and maintain satisfactory academic progress in order to be eligible. Eligibility for a PLUS loan is based on a parent's creditworthiness and not on financial need. Repayment of PLUS loans begin 60 days following the final disbursement of the loan each year unless otherwise noted on the application. The interest rate for Direct PLUS is a fixed rate of 7.595%.

How to Apply for a PLUS Loan:
1.         The Free Application for Federal Student Aid (FAFSA) for the student is required for parents wishing to apply for the Parent PLUS Loan.

2.         Complete the application at www.studentloans.gov.  When logging in, the parent applying for the loan must enter their Social Security Number, Date of Birth, First Name, Last Name, and PIN (same as used on the FAFSA). Once logged-in, Request a Direct PLUS Loan.

  •  This step runs the credit check.  For the PLUS Loan, the credit check evaluates Adverse Credit.  You will immediately be told if you are approved or denied. Because this credit check looks at Adverse Credit, it does not matter if you request $1 or $50,000.  If you enter an exact amount on the loan application and are approved and the amount is not enough, then you will have to complete an entirely new application to increase the loan amount.  Keep in mind this loan has a 4.292% origination fee the loan company takes off the top of the amount borrowed.  You will have an option to choose a “Maximum amount” or “Unknown amount”.  If either of these options is chosen, someone from the Financial Aid Office will be in touch with you to confirm an actual amount.   

3.         If approved, complete a Master Promissory Note (MPN) at www.studentloans.gov by using your FAFSA PIN as the electronic signature.

4.         If denied, your student may receive an additional $4,000 or $5,000 in his/her Unsubsidized Loan depending on the student’s grade level.  Someone from the Financial Aid Office will be in touch with you if you are denied to give you more options.

Loan Type


Interest Rate for Loan Disbursed 7/01/2018 - 6/30/2019

Origination Fee for loans disbursed from 7/01/2018 - 6/30/2019  

Grace Period and Deferment

Parent PLUS Parent of a dependent undergrad 7.595% Fixed 4.248% Parent may receive grace period and/or deferment if dependent student is enrolled at least half-time.  Parent must select these options on the application.  If not selected, then contact your loan servicer. Repayment begins 60 days after loan has been fully disbursed for loan period unless you choose to defer.