William D. Ford Direct Loan Program
Direct Loans are low interest loans for students and parents to help pay the cost of a student’s education after high school.  The lender is the U.S. Department of Education.
The Direct Loan program includes Subsidized and Unsubsidized Federal Stafford Loans and Federal PLUS Loans for parents. The principal amount of the loan is deferred until the student completes their studies or falls below half time enrollment.
Loan limits are below.

	Maximum Loan Amount Year 1	Maximum Loan Amount Year 2
Dependent Undergraduate Students	$3,500 plus $2,000 unsubsidized	$4,500 plus $2,000 unsubsidized
Independent Undergraduate Students	$9,500 – no more than $3,500 may be in subsidized loans	$10,500 – no more than $3,500 may be in subsidized loans

Federal Subsidized Direct Stafford Loan
A Subsidized Direct Stafford Loan is a loan for students on which interest is paid by the federal government while the borrower is in school and during grace and other deferment periods. To qualify, you must prove financial need. Undergraduate students may borrow annually a combination of subsidized and unsubsidized loans. The interest rate for subsidized loans disbursed on or after July 1, 2010 is 4.5%

Federal Unsubsidized Direct Stafford Loan
An Unsubsidized Direct Stafford Loan is a student loan for which the borrower is responsible for all interest from the date the loan is disbursed. The borrower has the option of paying the accrued interest or having the interest capitalized. The interest rate for an unsubsidized loan is 6.8%.

Federal Parent Loan (PLUS)
The Federal Direct Parent Loan is available to parents of a dependent student. Parents who are eligible may borrow up to the cost of attendance less other financial aid.  A parent must be creditworthy to qualify for this loan. Repayment begins within 60 days of the loan disbursement. The interest rate for a Federal Parent Loan is 7.9%.

Federal Direct Loan Entrance Counseling
Before receiving a student loan borrowers must complete an entrance counseling session.  This quick and easy interactive counseling session provides useful tips and tools to help you develop a budget for managing your educational expenses and helps you to understand your loan responsibilities.  Complete your Entrance Counseling requirements at www.studentloans.gov.
You will need your Department of Education 4-digit PIN to complete this process.  If you have forgotten your PIN, you can request it at www.PIN.ed.gov.

Federal Master Promissory Note
The Federal Direct Loan Master Promissory Note is a legal document listing the terms and conditions under which you repay the loan.  Complete the Federal Master Promissory Note at www.studentloans.gov.

You will need your Department of Education 4-digit PIN to complete this process.  If you have forgotten your PIN, you can request it at www.PIN.ed.gov.

Please contact our office at 1.800.664.9250 in you have any questions.