Federal Direct Loans are low interest rate loans that all students can apply for, provided they have filed a FAFSA and meet the criteria to receive federal aid.

As with all loans, Direct Loans must be repaid with interest. There are two types of student Direct Loans: Subsidized and Unsubsidized . You may receive one or both types depending on your dependency and financial status. To receive the funds, you must be enrolled at least half-time.

 

Subsidized Direct Loan

Unsubsidized Direct Loan

Financial Need

Based on need

Not based on need

Limits

Refer to the Annual and Aggregrate Loan Limit tables below.

Federal regulations limit new borrower eligibility for Direct Subsidized Loans to 150% of the published length of an undergraduate program.  This limit applies only to first-time borrowers.  For a full explanation, please click here

Refer to the Annual and Aggregate Loan Limit tables below.

Important to note that Subsidized and Unsubsidized Direct Loans combined cannot exceed the Federal Direct Loan annual limits noted below.

Interest

Interest rate is fixed at 4.66% until June 30, 2015. For a breakdown of the interest rate, please click here

 

None, Federal government pays the interest while in school at least half-time and during the six-month grace period after you graduate, leave school, or drop below half-time enrollment.

Elimination of the Grace Period Interest Subsidy – Currently, the federal government pays the interest on a Federal Direct Subsidized loan not only when the student is enrolled at least ½ time but also during their 6 month grace period. Effective 7/1/12, the federal government will temporarily eliminate the interest subsidy during the 6 month grace period for loans made between 7/1/12 and 6/30/2014.

Interest rate is fixed at 4.66% until June 30, 2015. For a breakdown of the interest rate, please click here here

 

You are responsible for paying all the interest while in school and after graduating or dropping below half-time enrollment. You can allow the interest to accumulate while you are in school and during the grace period. If you do, the interest will be capitalized immediately at the time of repayment. The capitalized interest will be added to the principal balance. It is to your advantage to pay the interest while in college; you will pay less in the long run.   

Fees

The loan fee is 1.072%.  

The loan fee is 1.072%.  

Apply for Loan & Entrance Counseling

After being awarded an Subsidized Direct Loan, go to https://studentloans.gov to complete a Master Promissory Note (MPN) and your Entrance Counseling.

 

If you are a continuing student borrower at PLNU,  go to your student portal to accept your loans (an MPN and entrance counseling is only required for new borrowers).

After being awarded an Unsubsidized Direct Loan, go to  https://studentloans.gov to complete a Master Promissory Note (MPN) and your Entrance Counseling.

 

If you are a continuing student borrower at PLNU,  go to your student portal to accept your loans (an MPN and entrance counseling is only required for new borrowers).

Repayment

Repayment begins six months after you graduate, withdrawn, or cease to be enrolled at least half-time.  The loan repayment period is typically 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. Please click here for more information about repayment.

If you would like to calculate your repayment of loans, try using this repayment calculator.

Repayment begins six months after you graduate, withdrawn, or cease to be enrolled at least half-time.  The loan repayment period is typically 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. Please click here for more information about repayment.

If you would like to calculate your repayment of loans, try using this repayment calculator.

Exit Counseling

Every student borrower who has withdrwan or graduated from PLNU is required to complete All students who graduate at the end of a term will be notified of in-person Exit Counseling sessions.  For withdrawn students, Exit Counseling can be completed here: https://studentloans.gov.

Every student borrower who has withdrwan or graduated from PLNU is required to complete All students who graduate at the end of a term will be notified of in-person Exit Counseling sessions.  For withdrawn students, Exit Counseling can be completed here: https://studentloans.gov.

 

Please Note:

  • Additional Unsubsidized Direct loans: If your parent is denied a Parent PLUS loan, you are eligible to apply for an additional unsubsidized loan. The limits are listed below. Please contact SFS to see if you are eligible to apply.
  • You are not required to borrow the full amount for which you are eligible; borrow conservatively to minimize indebtedness. 
  • Once awarded a federal loan, students still needs to apply for or claim their loan in order for it to be credited to their student 
    account.


Annual Loan Limits

 The following table shows the maximum amounts you can borrow each year for the Unsubsidized and Subsidized Direct Loans.

Dependent Undergraduates

Base Amount (DSSL//DUSL)

Additional Unsubsidized Loan Amounts

1st Year$3,500$2,000
2nd Year$4,500$2,000
3rd Year/4th Year$5,500$2,000

Independent Undergraduates

  
1st Year$3,500$6,000
2nd Year$4,500$6,000
3rd Year/4th Year$5,500$7,000

Aggregate Loan Limits

The following table shows the maximum lifetime totals that you can borrow for both the Direct Subsidized and Unsubsidized loans:

Dependent Undergraduates* 
Direct Subsidized Loans/Direct Unsubsidized Loan (DSSL/DUSL)$31,000
Total$31,000

INdependent Undergraduates*†

 
Direct Subsidized Loan (DSSL)$23,000
Direct Unsubsidized Loan (DUSL)$34,500
Total$57,500
* Includes Teacher Credential students
† includes Dependent Undergraduate students whose parents are denied the PLUS loan