Federal Direct Loans

Direct Unsubsidized loans are for graduate and undergraduate students. Students are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. Students can pay the interest while enrolled and during grace periods and deferment or forbearance periods, or students can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If students choose not to pay the interest as it accrues, this will increase the total amount required to repay because students will be charged interest on a higher principal amount. After graduation, leave school or drop below half-time enrollment, students will have a period of time before repayment. This “grace period” will be six months for both loans.

All students taking out Federal Direct Subsidized loans or Federal Direct Unsubsidized loans and have not previously received a Subsidized or Unsubsidized loan under the Federal Direct Loan program or a Subsidized or Unsubsidized Stafford Loan under the Federal Family Education (FFEL) Program are required to complete the Entrance Loan Counseling.

Upon completing the FAFSA, students who qualify are automatically offered Federal Direct Subsidized and/or Unsubsidized loans. All first-time borrowers must log onto BannerWeb to accept their awarded loan amount and complete both Loan Entrance Counseling and Master Promissory Note requirements. Both requirements must be completed by logging onto studentloans.gov.

Exit counseling is required by federal law for all students who received federally-funded student loans. The counseling session provides loan repayment, grace period, billing options, collects updated borrower information, and provides your rights and responsibilities as a loan recipient. If you borrow federal student loan funds and you withdraw, stop attending school, or are enrolled in less than 1/2 time (0<6 credit hours) you are required to complete the exit counseling session. The exit counseling requirement must be completed by logging onto studentloans.gov.

To complete the exit counseling you will need:

• Established FSA ID username and password (Same information used to digitally sign the FAFSA)
• Social Security Number
• Date of Birth
• Driver’s license number
• Permanent email address
• Names, addresses, telephone numbers of 3 references