Direct Student Loans
Direct Student Loans are federal student loans made directly available to college students and are used to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need. Nearly all students are eligible to receive them (regardless of credit score or other financial issues).
Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education directly and both types offer a grace period of six months, which means that no payments are due until six months after you graduate, leave school, or drop below half-time enrollment. Both types have a fairly modest annual limit. The limit for the academic year beginning is $3,500 per year for freshman undergraduate students, $4,500 for sophomore undergrads, and $5,500 per year for junior and senior undergrads. An increase in undergraduate loan limits due to new legislation H.R. 5715 "Ensuring Continued Access to Student Loans Act of 2008" raises the annual unsubsidized Stafford Loan amount by an additional $2000.
If you are an independent student as determined by the FAFSA, or a dependent undergraduate whose parents are unable to borrow under the Federal Direct Parent Loan for Undergraduate Students (PLUS) program, you may be eligible to borrow additional amounts under the unsubsidized Federal Direct Student Loan program. The aggregate amount may be borrowed for all undergraduate study is $31,000. Changes under H.R. 5715 are effective July 1, 2008. Contact the Office of Admissions and Financial Aid for additional information.
• Complete a FAFSA and submit it to New College using the code 039574. Your Personal Identification Number (PIN) can be found here. Parent PINs can also be accessed at this website.
• Complete and submit verification paperwork and supporting documents if selected.
• Complete the online Entrance Interview if you have never borrowed a Direct Loan before.
• E-sign a Master Promissory Note (MPN) with the U.S. Department of Education.
• Once you have registered and completed the requirements listed above, your loan will be processed and applied to your account.