Federal Direct Stafford and PLUS Loans
Subsidized Stafford Loan:
· Available for degree or certificate seeking students attending at least half-time (6 credit hours) and maintaining Satisfactory Academic Progress (SAP) according to policy.
· Student must be registered for classes and file the necessary financial aid applications (including the FAFSA) and turn in their Financial Aid Award Letter.
· Eligibility is based on financial need as determined by federal regulations.
· Entrance Interviews are required of all first time loan borrowers.
· First time borrowers are subject to a 30 day hold.
· Repayment begins 6 months after a student graduates, withdraws, or drops below 1/2 time status.
· Borrowers may choose from several repayment options.
· An origination fee of 0.5% will be deducted from each loan prior to disbursement.
· The subsidized interest is paid by the federal government while the student is in school at least half time (6 credit hours) and during the six month grace period.
· Fixed interest rate of 4.5% for loans disbursed after 07/01/10 of the 2010-2011 academic year.
Unsubsidized Stafford Loans:
· Available for degree or certificate seeking students attending at least half-time (6 credit hours) and maintaining Satisfactory Academic Progress (SAP) according to policy.
· Student must be registered for classes and file necessary financial aid applications (including the FAFSA) and turn in their Financial Aid Award Letter.
· Entrance Interviews are required of all first time loan borrowers.
· First time borrowers are subject to a 30 day hold.
· This loan is not need-based.
· Interest accrues during all periods, even during the time a student is in school and during grace and deferment periods.
· Interest payments can be made.
· Fixed interest rate of 6.8% for the 2010-2011 academic year.
PLUS (Parent) Loan:
· Parents borrow for educational expenses on behalf of their dependent child.
· Subject to credit approval.
· Not need based.
· Repayment begins either 60 days after the loan is fully disbursed or six months after the student graduates or ceases to be enrolled on at least a half-time basis.
o Please note: the parent must apply for deferment of payments.
· Subject to origination fees of up to 4%.
· Fixed interest rate of 7.9%.
o Interest may be tax deductible
Consolidating FFEL Program Loans into the Direct Loan Program
If you already have FFEL Program loans and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may make loan repayment easier. If you consolidate, you will have just a single monthly payment. Consolidating your FFEL Program loans into a Direct Consolidation Loan may also allow you to take advantage of certain benefits that are offered only in the Direct Loan Program, such as Public Service Loan Forgiveness and the Income Contingent Repayment Plan.
To learn more about when you may consolidate loans, the pros and cons of doing so, and the application process, visit www.loanconsolidation.ed.gov or call 800/557-7392 (TDD/TTY: 800/557-7395).
Additional Information
Aultman College looks forward to participating in the Direct Loan Program and offering the benefits of Direct Loans to our students. You can access all of your Federal Family Education (FFEL) and Direct Loans at www.nslds.ed.gov with your FAFSA pin number.
For additional information about Direct Loans, visit http://www2.ed.gov/offices/OSFAP/DirectLoan/index.html
Entrance Counseling and Electronic Master Promissory Note (e-MPN) Procedures
All Aultman College students planning to borrow a Federal Stafford Loan for the 2010-11 academic year must complete Entrance Counseling and submit a new electronic Master Promissory Note (e-MPN). All Parents planning to borrow a Direct PLUS loan must complete a new PLUS loan application and e-MPN. You will need your FAFSA PIN number (Personal Identification Number) to complete this process. Visit www.pin.ed.gov to request a duplicate PIN or to obtain a new PIN.
Each requirement will take approximately 15-20 minutes to complete. Make sure you have enough time to complete the process in a single session because you may not have the option to save the information.
New and Continuing Students for loans disbursed after 07/01/10:
Step One: Complete the Free Application for Federal Student Aid (FAFSA) each academic year. (If you have completed your FAFSA for the academic year, proceed to Step Two). After Aultman College receives your FAFSA and, if you are eligible for a Federal Direct Loan, it will be included in your financial aid package. Once you have received your Award Letter, please return it to the Financial Aid Office.
Step Two: Complete the Entrance Counseling requirement:
1. Visit the Department of Education Loan Counseling site https://studentloans.gov
2. List Aultman College as your school choice. Our school code is 006487.
Step Three: Complete the electronic Master Promissory Note (e-MPN):
1. Visit the Department of Education e-MPN site https://studentloans.gov.
2. Read and complete all items for Subsidized/Unsubsidized loans
3. List Aultman College as your school choice. Our school code is 006487.
4. Once you complete your e-MPN, print a copy for your records and click “Done” to send your application.
Parents (Direct PLUS loan application and e-MPN):
Step One: Complete the PLUS application and electronic Master Promissory Note (e-MPN):
1. Visit the Department of Education e-MPN site https://studentloans.gov.
2. Read and complete all items for the PLUS loan.
3. List Aultman College as your school choice. Our school code is 006487.
4. Once you complete your e-MPN, print a copy for your records and click “Done” to send your application.
Direct Loan Student and Parent Applicant Services: Assistance with Entrance Counseling and the Direct Stafford and PLUS loan application process.
Phone: 800-557-7394
Email: CODsupport@acs-inc.com
Fax: 877-623-5082
Website: www.studentloans.gov
