Federal Direct Loans

Federal Direct Student Loans

Emmanuel students may apply for the Federal Direct Loan, a low-interest student loan from the federal government. The amount you are eligible to borrow appears on your financial aid award letter.

Federal Direct Subsidized Loan - Undergraduate

These loans are awarded to students with financial need. A "subsidized" loan means the federal government pays the interest while the student is in school. The maximum amount that may be borrowed is based on dependency status and grade level according to the annual and aggregate loan limits established by Congress. Applicants may receive both types of loan, but the total may not exceed the federal loan limits. Borrowers who have both types of loans may have a single repayment schedule.

Federal Direct Unsubsidized Loan

This loan is not based on financial need and is available to all eligible students, regardless of income. A FAFSA application is required to apply. The loan is "unsubsidized" because the student is responsible for paying all interest due; there is no federal interest subsidy for the loan. The terms and conditions for Direct Unsubsidized Loans are otherwise the same as for Direct Subsidized Loans.

Accepting or Declining Loans

Accepting the Federal Direct Loan(s)

To complete the application process for a Federal Direct Loan, all first time borrowers at Emmanuel College must complete both the:

Master Promissory Note (MPN) at studentloans.gov; and
Entrance Counseling at studentloans.gov.

You will need your FSA ID (formerly FAFSA PIN) to complete both the Entrance Counseling and MPN. To obtain a FSA ID, please visit fsaid.ed.gov.

Declining or reducing the Federal Direct Loan(s)

To decline the loan(s) or reduce the amount you wish to borrow, please login to Financial Aid via EC Online Services and select the "My Awards" page. Scroll down to the Loans section, then click "Change loan amount".

Terms and Conditions

Subsidized Loan

Unsubsidized Loan

Fixed Interest Rate

Subsidized Loan

2.75% (for new loans disbursed on or after July 1, 2020 and before July 1, 2021).

Unsubsidized Loan

2.75% (for new loans disbursed on or after July 1, 2020 and before July 1, 2021)

Interest accrues immediately upon disbursement of the loan to the student. Borrowers may elect to pay accrued interest on a monthly or quarterly basis, but most students elect to have it added back to the principal balance in a process called capitalization. The interest is then added into the total amount borrowed and is not paid until the loan repayment period begins, six months after graduation or withdrawal from the College.

Origination Fee
(Deducted from the amount of the loan prior to disbursement.)

Subsidized Loan

1.059% (for new loans disbursed on or after October 1, 2020 and before October 1, 2019.)

Unsubsidized Loan

1.059% (for new loans disbursed on or after October 1, 2019 and before October 1, 2020.)

Maximum Undergraduate Annual Loan Amount

See chart below.

Maximum Undergraduate Aggregate Amount

Dependent students: $31,000-No more than $23,000 of this amount may be in subsidized loans. Independent students: $57,500-No more than $23,000 of this amount may be in subsidized loans.

Repayment

10 years; begins 6 months after no longer enrolled at least half-time. Minimum monthly repayment of $50 begins six months after graduation or withdrawal from the University. You can monitor the total amount you borrow and the repayment requirements that you will have when you finish your education through studentloans.gov. Sample Direct Loan repayment schedules are available on the U.S. Department of Education Direct Loan website. You can choose from a variety of repayment plans to fit your financial circumstances and modify plans if circumstances change.

Deferment

You can defer your loan under various circumstances, which will postpone your loan payments. For example, while you are enrolled as a half-time student (including graduate school) in a degree granting program or while you are unemployed, you can request loan deferment. Learn more about deferment provisions and repayment options at studentloans.gov and the Direct Loan website. Provisions for loan deferment or cancellation can be found on the loan promissory note and at studentloans.gov.

Interest Charged While Enrolled at Least Half-time in a degree granting program

Subsidized Loan

No

Unsubsidized Loan

Yes

Servicer

Visit studentaid.ed.gov for information regarding your servicer.

Terms and Conditions

Subsidized Loan

Unsubsidized Loan

Fixed Interest Rate

4.529% (for new loans disbursed on or after July 1, 2019 and before July 1, 2020).

4.529% (for new loans disbursed on or after July 1, 2019 and before July 1, 2020)

Interest accrues immediately upon disbursement of the loan to the student. Borrowers may elect to pay accrued interest on a monthly or quarterly basis, but most students elect to have it added back to the principal balance in a process called capitalization. The interest is then added into the total amount borrowed and is not paid until the loan repayment period begins, six months after graduation or withdrawal from the College.

Origination Fee
(Deducted from the amount of the loan prior to disbursement.)

1.062% (for new loans disbursed on or after October 1, 2018 and before October 1, 2019.)

Maximum Undergraduate Annual Loan Amount

See chart below.

Maximum Undergraduate Aggregate Amount

Dependent students: $31,000-No more than $23,000 of this amount may be in subsidized loans. Independent students: $57,500-No more than $23,000 of this amount may be in subsidized loans.

Repayment

10 years; begins 6 months after no longer enrolled at least half-time. Minimum monthly repayment of $50 begins six months after graduation or withdrawal from the University. You can monitor the total amount you borrow and the repayment requirements that you will have when you finish your education through studentloans.gov. Sample Direct Loan repayment schedules are available on the U.S. Department of Education Direct Loan website. You can choose from a variety of repayment plans to fit your financial circumstances and modify plans if circumstances change.

Deferment

You can defer your loan under various circumstances, which will postpone your loan payments. For example, while you are enrolled as a half-time student (including graduate school) in a degree granting program or while you are unemployed, you can request loan deferment. Learn more about deferment provisions and repayment options at studentloans.gov and the Direct Loan website. Provisions for loan deferment or cancellation can be found on the loan promissory note and at studentloans.gov.

Interest Charged While Enrolled at Least Half-time in a degree granting program

No

Yes

Servicer

Visit nslds.ed.gov for information regarding your servicer.

To learn more, visit

studentaid.ed.gov

Annual Federal Direct Loan Limits

Grade (credits completed)

Dependent Students

Independent Students

Freshman
(0-31 credits)

Dependent Students:

$5,500

Independent Students:

$9,500

Sophomore
(32-63 credits)

Dependent Students:

$6,500

Independent Students:

$10,500

Junior/Senior (64+ credits)

Dependent Students:

$7,500

Independent Students:

$12,500

Loan Repayment

What happens after I am no longer an Emmanuel Student?

Students who are graduating or who will no longer be enrolled at least half-time are required to complete Exit Counseling at studentloans.gov. Information regarding the following may also be found at studentloans.gov:

Making payments
Avoiding default
Loan servicers
Repayment plans
Loan consolidation
Deferment and forbearance
Forgiveness, cancellation and discharge
Understanding default
Resolving disputes

Loans will be submitted to the National Student Loan Data System and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system. Please visit our detailed Student Loan Repayment page for more information.