Federal Direct Student Loans
Federal Direct Student Loans are loans made available to college students and are to be used for educationally related expenses 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 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 Direct Loan amount by an additional $2,000.
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 you can borrow for all undergraduate study for dependent students whose parents have not been denied a PLUS loan, 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. Information on creating, using or unlocking your Federal Student Aid ID can be found here.
• 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, accept your loan offer on your student NEWcleis account. Loans are generally available to accept online starting one month prior to the beginning of the fall semester.
Direct Loan Information Sheet