Federal Direct Loans

Federak 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; interest is paid by the government while you are enrolled at least half-time.  For the 2011-12 academic year, the interest rate is fixed at 3.4% for Federal Direct Subsidized Loans.

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. For the 2011-12 academic year, the interest rate is fixed at 6.8% for Federal Direct Unsubsidized Loans.

Effective July 1, 2008, undergraduate students are eligible to borrow up to $2000 in Federal Direct Unsubsidized Loan each academic year. As of that date, the aggregate Federal Direct loan limits increased. Dependent undergradate 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.