William D. Ford Federal Direct Loan Program (Direct Loan Program)
Florida A&M University participates in the William D. Ford Federal Direct Loan Program (Direct Loan). The Direct Loan program allows students to borrow funds directly from the U.S. Department of Education. All Federal Stafford and PLUS loans certified by Florida A&M University will be processed as direct loans, including loans for continuing students who previously obtained a loan from a lender via the Federal Family Education Loan Program. There is no longer a need for students to select a lender, as all loans will be directly funded by the U.S. Department of Education.
New loan origination fee rates for the first disbursement of all loans made on or after October 1, 2019 are:
· Direct Subsidized and Unsubsidized Loans—1.059%
· Direct PLUS Loans—4.236%
All origination fees are deducted from the principal amount when the loan is disbursed.
INTEREST RATES ARE DIFFERENT THAN LOAN ORIGINATION FEES. FIXED INTEREST RATES FOR DIRECT LOANS FIRST DISBURSED ON OR AFTER JULY 1, 2019 AND BEFORE JULY 1, 2020:
Direct Subsidized Loans and Direct Unsubsidized Loans ------------------------------Undergraduate ------------------------------- 4.53%
Direct Unsubsidized Loans -----------------------------------------------------------Graduate or Professional ------------------------- 6.08%
Direct PLUS Loans -------------------------------------------------------Parents & Graduate or Professional Students ------------- 7.08%
Following your acceptance of a loan on the Award Notification Letter, you will need to complete the required loan Master Promissory Note. The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). All student and parent loan borrowers must complete a William D. Ford Direct Loan Program MPN. Failure to complete this requirement will prohibit your loan from disbursing to your student account. Borrowers, who completed a MPN with a previous lending institution, must have a valid MPN on file with the Direct Loan Program before loan funds may be disbursed. The Master Promissory Note is your promise to repay your loan debt and must be completed before any funds can be sent to the school.
All first-time Federal Direct Stafford and Graduate PLUS loan borrowers must complete entrance counseling prior to receiving their first loan disbursement. You may complete this process by following the link on your “TO DO LIST" on iRATTLER or you may click here Loan Entrance Counseling to begin the process. Entrance counseling takes approximately 20-30 minutes to complete. Students who previously completed entrance counseling for FAMU are not required to complete entrance counseling for each academic year.
The Office of Financial Aid receives results of entrance counseling from the Department of Education. Federal Direct Stafford and Graduate PLUS loans will not disburse until entrance counseling has been completed.
All student borrowers are required by Federal Law to complete exit counseling on the web upon graduation, withdrawal, failing to return for a subsequent semester, or enrollment as a less than half-time student.
Exit counseling takes approximately 30-40 minutes to complete and you may click here Exit Counseling to begin the process. Failure to complete exit counseling will result in a hold being placed on the student's file.
Student borrowers must complete exit counseling to obtain a degree and/or an official transcript from the Registrar’s Office.
To view your loan history, access the National Student Loan Data System (NSLDS) by logging into https://studentaid.gov/ and log into your account. Once you're logged on, you should see it on your dashboard. The NSLDS is a centralized database that stores information on all federal loans. Students are strongly encouraged to review their loan history periodically.
Florida A&M University processes all Stafford Loans in the William D. Ford Federal Direct Loan Program. There is no need for students to select a lender. Students attending Florida A&M University (FAMU) may apply for two types of Federal Stafford student loans; the Federal Subsidized (financial need required) Stafford Loan and the Federal Unsubsidized (financial need not required) Stafford Loan. The Federal Subsidized Stafford Loan is a need based loan which means the interest is paid by the Federal Government while you are enrolled in school as at least a half time student, or during the grace period, or during periods of an authorized deferment.
The Federal Unsubsidized Stafford Loan is a non-need based loan which means the student is responsible for paying the interest while in school, or during deferment periods, or during the repayment period. The student can elect to pay the interest of the loan while in school or request to have the interest payments postponed while in school. If the student elects to have the interest payments postponed while in school, the interest will be capitalized (added to your principal) once you enter repayment status.
Both the Subsidized and the Unsubsidized Federal Stafford Loans have a variable interest rate that may adjust each July 1st. Federal Stafford Loan eligibility is included in students’ financial aid award packages. In order to receive the Federal Stafford Loan, students must accept the award(s) via their iRattler accounts.
To apply for a subsidized or an unsubsidized Stafford Loan you must meet the following requirements:
• File the FAFSA
• Be a U.S. citizen or eligible non-citizen
• Have a high school diploma or equivalent
• Be classified as degree seeking student at FAMU in an eligible program
• Undergraduate/Graduate students must be enrolled for at least half-time (6 credit hours) at
FAMU at time of disbursement.
• Maintain FAMU’s standards for Satisfactory Academic Progress (SAP)
• Complete verification (if selected)
• Complete the online Entrance Loan Counseling
• Satisfy all Selective Service requirements
Federal Stafford Loan Step-by-Step Process
Direct PLUS loans are non-need based financial aid offered to the parents of undergraduate students and to students enrolled in degree-seeking graduate/professional programs. PLUS loans allow graduate students and parents of undergraduate students to borrow up to the student’s Cost of Attendance to assist with educational expenses. The amount of a PLUS loan a student or parent may be eligible to receive is included in each student’s initial financial aid package. The PLUS Loan amount is determined by subtracting all other financial aid resources from the student’s Cost of Attendance.
In order to receive a PLUS loan the borrower must receive credit approval from the U.S. Department of Education. Borrowers with an adverse credit history may not be approved for a PLUS loan. In the case of adverse credit history, the borrower may be able to utilize an endorser with no adverse credit history as a co-borrower.
Graduate/professional students are eligible to apply for a credit based Graduate PLUS Loan through the financial aid office at Florida A&M University. This loan will be offered as an award on your student financial aid Award Notification Letter and is the maximum amount of funds you are eligible to request during that academic period. If you wish to apply for this loan, you must complete the Graduate PLUS Loan Request Form and submit it to the Office of Financial Aid. A credit check will be performed once the form has been submitted. Graduate PLUS Loans will be certified for those borrowers who are credit-approved by the William D. Ford Federal Loan Program.
All Graduate PLUS Loan Borrowers must complete Loan Entrance Counseling before loan funds can be released. Students who previously completed entrance counseling for Florida A&M University are not required to complete new entrance counseling.
Federal Graduate PLUS Loan Step-by-Step Process
Parent Loan for Undergraduate Students (PLUS Loans) are low cost federal loans taken out in the parent’s name for a dependent student. These loans are used to cover the cost of education expenses that are not satisfied by other aid, i.e., PELL Grants or Stafford Loans. This loan has a variable interest rate (currently 7.08%) that may adjust each July 1st, but cannot exceed 9%. Parents are eligible based on their credit history, not income. Parents must meet the credit criteria of the William D. Ford Federal Student Loan Program to receive the PLUS loan. Additionally, parents must complete the Parent PLUS Loan Request Form and submit it to the Office of Financial Aid to initiate the PLUS loan process. A credit check will be performed once the form has been submitted.
Parent Loan for Undergraduate Students (PLUS) Eligibility
Federal Parent PLUS Loan Step-by-Step Process
Alternative loans are private educational loans that are available from private lenders and offer additional financial assistance to students who have exhausted all other sources of funding for their education.
How to apply for alternative loans
Please contact your preferred lender for additional information regarding eligibility requirements and a loan application. Upon approval by your lender, the Financial Aid Office will be electronically notified and the certification for the loan will be completed.
For additional information on Federal Student Loans, please visit https://studentaid.ed.gov/sa/
For information regarding the Official Loan Cohort Default Rate please click on the link below and enter the school OPEID number 001480