Federal Student Loans
Federal Direct Student Loans are available to U.S citizens and permanent residents who are enrolled at least half-time (six credits/semester). Typically, Federal Direct Student Loans are included in your initial financial aid package and are available to all students, regardless of need. No cosigner or credit check is required. The student is the borrower and repayment begins six months following graduation, over a 10-year period.
Undergraduate students with financial need may qualify to have a portion of their Federal Direct Student Loan subsidized. This means the Federal Government will pay the interest on the loan while the student is enrolled and during the six-month grace period. The interest rate on Federal Direct Student Loans is “variable-fixed” in that it is rest by the federal government July 1st each year, for loans made for the upcoming academic year, but any loan taken out in that academic year has that fixed interest rate for the life of the loan.
For the 2024-2025 academic year, the interest rate on the Federal Direct Student Loan is 6.533% for undergraduates (8.083% for graduate students) and there is a 1.057% origination fee deducted from the loan amount by the federal government.
Maximum annual loan limits based on grade level for dependent undergraduate students are as follows:
- $3,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Freshmen (0-23 credits earned) = $5,500 TOTAL
- $4,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Sophomore (24-53 credits earned) = $6,500 TOTAL
- $5,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Junior/Senior (54+ credits earned) = $7,500 TOTAL
Whether loan is Subsidized is based on financial need as determined by the FAFSA. If student as no financial need, total annual Unsubsidized Student Loan eligibility would be: $5,500 as a freshman, $6,500 as a sophomore, $7,500 as a junior or senior.
Maximum annual loan limits per grade level for independent undergraduate students or for dependent undergraduate students whose parents are denied on the Federal Direct PLUS Loan are as follows:
- Freshman: $3,500 Subsidized Federal Direct Student Loan + $6,000 Unsubsidized Federal Direct Student Loan = $9,500 TOTAL
- Sophomore: $4,500 Subsidized Federal Direct Student Loan + $6,000 Unsubsidized Federal Direct Student Loan = $10,500 TOTAL
- Junior & Senior: $5,500 Subsidized Federal Direct Student Loan + $7,000 Unsubsidized Federal Direct Student Loan = $12,500 TOTAL
To receive the Federal Direct Student Loan, first-time borrowers at Andrew College must do the following:
- Complete a Master Promissory Note (MPN) at http://studentaid.gov/
- Complete an Entrance Counseling Session
Entrance Loan Counseling
Before receiving any federal student loans, borrowers MUST complete an entrance counseling session. This quick and interactive counseling session provides useful tips and tools to help you develop a budget for managing your education expenses and helps you understand your loan responsibilities. Both Federal Student Loan and PLUS loan borrowers must complete the appropriate Master Promissory Note.
Please allow approximately 30 minutes to complete this process.
To complete this requirement, please complete the following steps:
- Go to www.studentaid.gov.
- Click on the blue “Log in” on the top right hand side
- Use your (student’s) FSA ID and Password to log-in (Accept the Disclaimer)
- Under the “I WANT TO” section select Complete Loan Counseling
- Select ENTRANCE LOAN COUNSELING, it should be the first loan counseling option to select
- Complete the session. Be sure that you have selected to notify ANDREW COLLEGE
- Once you have completed the Entrance Counseling, please continue to complete the Master Promissory Note.
Master Promissory Note
The Federal Direct Master Promissory Note is a legal document listing the terms and conditions under which you repay your loan(s).
You will be required to list two references. One reference can be a parent, and the other must be someone that lives at a different address.
- Make sure you are logged on to www.studentaid.gov. (Follow the directions listed above).
- Under the “I WANT TO” section select “Complete Loan Agreement (MPN)
- Select the first option “MPN for Subsidized/Unsubsidized Loans”
- Complete the required information.
- The Institutional Title IV form MUST be completed by all students receiving funds from state, federal, or institutional sources including grants, loans, and scholarships.
Student Authorization to Andrew College regarding use of Title IV