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FEDERAL DIRECT LOAN INFORMATION
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The William D. Ford Federal Direct Loan Program
Florida International University has elected to participate in the William D. Ford Federal Direct Loan Program for the federal Stafford, PLUS and Grad PLUS loan programs. Listed below are the loan types, eligibility and steps that you must follow to complete your loan process from application to disbursement.
Loan Types
Subsidized – is awarded to student’s demonstrating a financial need as determined by the federal processor as a result of your FAFSA application. Your loan eligibility is also based on your academic level (see chart below). Interest payments on this loan is subsidized (you are not charged interest) by the federal government while you are in school or during authorized periods of deferments. You begin repayment six months after you graduate or stop attending at least half-time.
Unsubsidized – a student does not have to demonstrate financial need to receive this loan. You may borrow the cost of attendance minus all financial aid awarded and based on your academic level (see chart below). Interest payments on this loan are not subsidized by the government. You can choose to pay the interest while you are enrolled halftime or it can be accrued and added to the part of the principal of the loan that you owe. You begin repayment six months after you graduate or stop attending at least half-time.
Parent Plus - PLUS (Parent Loan for Undergraduate Students) Loan enable parents to borrow for each of their dependent children enrolled in at least six credits and meet all eligibility requirements. Parent can borrow up to the cost of attendance minus other aid. Parents have the option to defer payment until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least half-time basis. Interest payments on this loan are not subsidized by the government.
This loan is a credit-worthiness loan which will require a credit history approval.
Parents will need to complete a Direct Loan Application with the Financial Aid Office . This application will initiate the loan application process; you will be notified of the pre-approval decision so that we can determine final eligibility by the Department of Education. Parents will need to contact the Department of Education for payment arrangements, deferments and forbearance options. Loans are not automatically renewed. Parents must reapply annually.
Graduate Plus - Graduate students are now eligible to borrow under the PLUS loan program up to their cost of attendance minus other estimated financial assistance. Students need to first apply with the Department of Education to initiate the loan application process; t terms and conditions applicable to Parent Plus Loans also apply to Graduate Plus Loans. All Graduate Plus Loans are awarded to all graduate students who meet the eligibility requirement upon receipt of your financial aid award letter for each academic year. This loan is a credit-worthiness loan which will require a credit history approval. Interest Payments on this loan are not subsidized by the government.
Eligibility/Requirements
Recipients of federal loans must meet the following criteria:
Completed Free Application for Federal Student Aid (FAFSA) Application annually - Be a U.S. citizen or eligible non-citizen
- Admitted to a degree seeking program or an eligible certificate program
- Be enrolled at least half time (undergraduates = 6+ credits, graduates = 5+ credits, and law = 6+ credits) when loan proceeds are received.
- Not be in default on a previous student loan or owe a repayment on a previous federal aid award received at any institution.
- Applicant can not have an adverse credit history (for Parent and Graduate Plus loans only).
- Maintain satisfactory academic progress.
4 Steps to complete BEFORE the Disbursement of your Loan(s) including the Master Promissory Note (MPN) - Accept your "Offered" Award On-Line thru Panthersoft at my.FIU.edu
- First time FIU borrowers - Complete an Entrance Counseling Seminar for your particular loan type
- If you do not have a FAFSA PIN (personal id number) obtain one at http://www.pin.ed.gov/ for student/parent to sign the electronic Master Promissory Note.
- If you are a first-time Federal Direct Loan borrower, using your Federal FAFSA PIN, complete and submit the electronic Master Promissory Note at: https://dlenote.ed.gov/
Parent Plus Loan Application Process
- Submit your completed FIU Federal Plus Direct Loan Application to the Financial Aid Office. Please keep a copy for your records.
Complete an electronic PLUS Master Promissory Note(eMPN) for Parents at
http://dlenote.ed.gov - You must submit copies of the parent applicant's citizenship or permanent resident documentation.
- If you do not have a Free Application for Federal Student Aid (FAFSA) on file with our office, you must submit copies of the student's citizenship or permanent resident documentation.
- Upon receipt of your completed application with all required documents, your application will be processed.
- If your PLUS Loan is approved you will receive notification from the U.S. Department of Education. The University will disburse funds to the parent/borrower's address provided on the FIU Federal Direct Loan Application upon receipt of funds. Student Financials will deduct from financial aid any and all monies due Florida International University and remit the balance to the borrower.
- If your PLUS Loan is rejected, you will receive notification from the U.S. Department of Education. You will be given the option, at that time, to obtain an endorser (co-signer) to continue the loan process.
- If you choose not to submit an endorser application, you should contact the Financial Aid Office for information on student eligibility for alternative loans
Interest Rates - (US Dept of Education)
Undergraduate Students - Stafford Loans
The interest rate for loans disbursed between July 1, 1998, and June 30, 2006, will continue to be adjusted each year on July 1, though for Stafford loans it will never be higher than 8.25%.
Subsidized Stafford Loans
Loans disbursed on or after July 1, 2009, will have an interest rate of 5.6 % fixed rate
Unsubsidized Stafford Loans
Loans disbursed on or after July 1, 2009, will have an interest rate of 6.8 % fixed rate.
Interest Rates- (US Dept of Education)
Graduate Students - Stafford Loans Subsidized Stafford Loans
Loans disbursed on or after July 1, 2009, will have an interest rate of 6.8 % fixed rate.
Unsubsidized Stafford Loans
Loans disbursed on or after July 1, 2009, will have an interest rate of 6.8 % fixed rate.
Loans disbursed on or after July 1, 2008 will have a fixed interest rate of 7.9%. Is there a charge for this loan?
Yes. In addition to interest, you pay a loan fee of 1.5% of the principal amount of each Direct Subsidized or Unsubsidized Stafford Loan that you borrow. The loan fee for PLUS loans is 4%. According to the US Dept of Education, - these fee helps reduce the cost of making these low-interest loans. The US Dept of Education deducts the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay. Receiving Your Loan Disbursement
All Federal Direct Loan funds are disbursed directly to the Financial Aid Office to confirm that enrollment criteria are met at the time of disbursement. Funds are first used to pay any outstanding balance due. Any remaining funds are sent to the borrower per term via a refund. Students must maintain at least half-time enrollment to receive any loan funds as required the federal regulation.
Refunds-Student Financials Office-Direct DepositStudents are encouraged to set up a Direct Deposit Account through the PantherSoft system under the Finances link through my.fiu.edu . All refunds are electronically posted into their personal bank account. Once funds are released for disbursement to the Office of Student Financials, the refund process, if a Direct Deposit Account is established, takes approximately 24-48 hours to be deposited into the student’s personal bank account. Otherwise, a check is processed and mailed through the US Postal system. Loan Limits
Academic Level | Subsidized | Unsubsidized for Dependent Students effective 07/01/2008 | Unsubsidized for Independent Students effective 07/01/2008 | Aggregate Limits | Freshmen | 3,500 | 2,000 | 6,000 | Undergraduates:
Dependent, $31,000 ($23,000 sub and $8,000 unsub)
Independent, $57,500
($23,000 sub and $34,500 unsub) | Sophomore | 4,500 | 2,000 | 6,000 | Junior | 5,500 | 2,000 | 7,000 | Senior | 5,500 | 2,000 | 7,000 | | |
Academic Level | | | | Graduate | 8,500 | 12,000 | Graduate:
$138,500 ($65,500 in subsidized) | | | |
The William D. Ford Federal Direct Loan Program (Direct Loan) US Department of Education as lender.
Direct Loan Servicing OnLine
Direct Loan borrower services
1-800-848-0979/ TTY users can call 1-800-848-0983
Direct Consolidation Loan Information
1-800-557-7392/TTy users can call 1-800-557-7395 |
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