2010-11 Direct Loan Program

Notice To All Student and Parent Stafford Loan Borrowers:    

Participation in the Direct Loan Program Begins 07/01/10

Due to the recent enactment the Health Care and Education Reconciliation Act of 2010, Aultman College of Nursing and Health Sciences will participate in the William D. Ford Federal Direct Loan (Direct Loan) Program beginning 07/01/2010.  Students and parents who previously received loans through the Federal Family Education Loan (FFEL) Program will now borrow through the Direct Loan Program.  Click here for more information.

The Direct Loan Program offers the same types of loans as the FFEL Program and Direct Loans generally have the same terms and conditions as FFEL Program loans, but instead of a bank lending the money, the U.S. Department of Education (the Department) lends the money directly to students and parents through the student’s school. 

Effective 07/01/10, 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.

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