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.

This loan is not based on financial need and is available to all eligible students, regardless of income, but a FAFSA application is required to be eligible. The loan is "unsubsidized" because the student is responsible for paying all interest due.

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:

1. Master Promissory Note (MPN) at studentaid.gov/mpn and
2. Entrance Counseling at studentaid.gov/entrance-counseling

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".

Students who are graduating or who will no longer be enrolled at least half-time are required to complete Exit Counseling at studentaid.gov/exit-counseling. 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. 

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on a borrower’s federal student loans after 120 payments and 10 years of working full-time for federal, state, Tribal, or local government; military; or a qualifying non-profit. As part of the Student Loan Debt Relief Plan that was released today, there is increased temporary flexibility regarding what payments can be counted towards the 120 payments.

The deadline to apply to participate in the PSLF program under the temporary flexible repayment guidelines is October 31, 2022. Borrowers should apply to participate in the program October 31^st even if they will not meet all of the criteria to receive the loan forgiveness by that date.

The Biden Administration and the Department of Education announced a three-part Student Debt Relief Plan on August 24, 2022.

Part I of the plan extends the pause on repayment of federally held loans through December 31, 2022.

To find out if your loans are federally held, follow these steps:

1. Visit your federal student aid dashboard.
2. Go to the “My Loan Servicers” section.
3. If you see a servicer name that starts with “DEPT OF ED,” the related loan is federally held.

Part II of the plan provides debt relief through two programs:

Loan Cancellation

The U.S. Department of Education will provide up to $20,000 in debt cancellation to Federal Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. The eligibility for borrowers who were dependent students during the 2021-2022 academic year would be based on their parental income. Click here for more information including how to apply for debt cancellation.

Which loans are included in the loan cancellation plan?

• Federally-held undergraduate, graduate, and Parent PLUS loans that have been fully disbursed by June 30, 2022.
• To find out if your loans are federally held, follow these steps:
  • Visit your federal student aid dashboard
  • Go to the “My Loan Servicers” section
  • If your loan has servicer name that starts with “DEPT OF ED,” the related loan is federally held

How do I know if I received a Federal Pell Grant?

• Visit your federal student aid dashboard
• Your dashboard will show a visual breakdown of your federal student aid account
• Click on “View Details” in the “Grants” section to see if any of your grants was a Federal Pell Grant

Public Loan Forgiveness Program

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on a borrower’s federal student loans after 120 payments and 10 years of working full-time for federal, state, Tribal, or local government; military; or a qualifying non-profit. As part of the Student Loan Debt Relief Plan that was released today, there is increased temporary flexibility regarding what payments can be counted towards the 120 payments.

The deadline to apply to participate in the PSLF program under the temporary flexible repayment guidelines is October 31, 2022. Borrowers should apply to participate in the program October 31^st even if they will not meet all of the criteria to receive the loan forgiveness by that date.

Part III of the plan proposes a new rule that changes the percent of discretionary income included when determining the monthly payment amounts for borrowers on an income-driven repayment plan (from 10% to 5%) and reduces the number of payments borrowers need to make before their remaining loan balance can be forgiven from 20 years of payments to 10 years of payments. Click here for more information about the proposal.