Federal Direct Loans

Federal Direct Loans offer you a low interest rate. It offers a six-month grace period after enrollment ceases or drops below half-time status. The amount of Federal Direct Loan you may borrow is determined by your grade level in school and by limits set by the Department of Education.  For more information about Federal Direct Loans, please refer to http://www.direct.ed.gov/.

There are two types of Federal Direct Loans:

Federal Direct Subsidized: These are based on financial need, which is determined by completing the FAFSA.

    Loans borrowed during the 2011-12 academic year

  • The interest rate is fixed at 3.4%.
  • The loans are interest free while the student is enrolled in school and during the six month grace period once the student leaves school.
  • The loans have a 1% federal default fee, but .5% of this fee is given as an up-front rebate.  Consequently, the net loan amount is 99.5% of the gross amount borrowed.

    Loans borrowed during the 2012-13 academic year

  • The interest rate is fixed at 6.8%.
  • Loans are interest free only while the student is enrolled in school.
  • The loans continue to have a 1% federal default fee but the up-front rebate is no longer offered.  Consequently, the net loan amount is 99% of the gross amount borrowed.

Federal Direct Unsubsidized: These loans are not based on financial need; interest starts accruing once the loan disburses. You may elect to pay the interest as it accrues or defer it until you enter repayment.

    Loans borrowed during the 2011-12 academic year

  • The interest rate is fixed at 6.8%.
  • The loans have a 1% federal default fee, but .5% of this fee is given as an up-front rebate.  Consequently, the net loan amount is 99.5% of the gross amount borrowed.

    Loans borrowed during the 2012-13 academic year

  • The interest rate is fixed at 6.8%.
  • The loans continue to have a 1% federal default fee, but the up-front rebate is no longer offered.  Consequently, the net loan amount is 99% of the gross amount borrowed.

SUBSIDIZED AND UNSUBSIDIZED

ANNUAL LOAN LIMITS

  Dependent Undergraduates

Independent Undergraduates

(and dependents whose parents are unable to borrow a PLUS)
Freshmen $5,500—No more than $3, 500 of this amount may be in subsidized loans. $9,500—No more than $3,500 of this amount may be in subsidized loans.
Sophomores $6,500—No more than $4,500 of this amount may be in subsidized loans. $10,500—No more than $4,500 of this amount may be in subsidized loans.
Juniors & Seniors $7,500—No more than $5,500 of this amount may be in subsidized loans. $12,500—No more than $5,500 of this amount may be in subsidized loans.

LIFELONG LOAN LIMITS

Dependent undergraduate students may borrow up to $31,000, of which no more than $23,000 may be subsidized.

Independent undergraduate students may borrow up to $57,500, of which no more than $23,000 may be subsidized.

To be eligible for a Federal Direct  loan, students must:

  • submit the FAFSA for each academic year she wishes to obtain a Federal Direct loan.
  • be a U.S. citizen or an eligible non-citizen.
  • be enrolled at least half-time as an undergraduate or graduate student.
  • have no prior outstanding student loan in default and not owe a repayment on any federal aid.
  • complete a Federal Direct loan application and Master Promissory Note (MPN).
  • complete entrance counseling prior to receiving the first Federal Direct loan at Saint Mary's College.
  • be meeting Saint Mary's Financial Aid Standards of Satisfactory Academic Progress.

 

To apply for a 2011-2012 Federal Direct Loan:

If you are a new borrower at Saint Mary's College, please complete both steps listed below.  This includes transfer students who may have borrowed Federal Direct loan funds or Stafford loan funds at another institution.

If you have previously borrowed Federal Direct loan funds or Stafford loan funds through the FFEL program at Saint Mary's College, please complete the second step listed below.

  1. Before you begin, please make sure you are using a supported browser.  MS Explorer, Firefox, and Safari are supported browsers.
  2. Complete the federally required Entrance Counseling. 
    • Click the "Sign In" button.  You will need your PIN to complete this.  It is the same PIN used to complete your FAFSA.
    • Once you are signed in, select "Complete Entrance Counseling" from the menu on the left-hand side of the screen.  Please read the information and answer the questions as they appear.
    • When you are asked to select a state and a school, select "Indiana" under "School State" and "ST MARYS COLLEGE" under School Name. 
    • Read the information presented to you.  You will be quizzed on the information and must successfully answer 12 of 15 questions to pass the entrance counseling quiz.  If you fail the quiz three consecutive times, you will need to wait 48 hours and try again.  Some browsers may allow you to clear your temporary internet files/cookies and try again without waiting 48 hours.
  3. Complete your Master Promissory Note (MPN).
    • On the left-hand side of the page, select "Complete MPN" and then select "Subsidized/Unsubsidized" as the loan type.
    • Continue following the steps as directed.  When you are asked to select a state and a school, select "Indiana" under "School State" and "ST MARYS COLLEGE" under School Name.

If you experience technical difficulties with either of these processes, please call COD Applicant Services at 800-557-7394.