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Federal Direct Loans
The Subsidized Federal Direct Stafford Loan is a need-based loan,
while the Unsubsidized Federal Direct Stafford Loan is not. Students
borrowing the Subsidized Loan do not pay interest on the loan while
they are enrolled at least half-time; conversely, students
borrowing the Unsubsidized Loan must pay interest while they are
enrolled in school. The Unsubsidized Loan does allow you to
defer the interest payments until you graduate; however, this will
result in a higher loan payment over the life of the loan, so you
will pay more in the long run.
Subsidized Federal Direct Loan
|
Description |
Eligibility/Requirements |
Terms |
|
·
Federally funded.
·
3.4%
fixed interest rate
·
Existing Direct Loans can be
consolidated
·
Find additional information as well as a borrowing maximums
chart on the
Department of Education’s website.
· Effective for loans made for payment periods that begin on
or after July 1, 2012, graduate and professional students
are no longer eligible to receive subsidized loans. However,
if you are a graduate or professional student, you may still
qualify for up to $20,500 in unsubsidized loans each year. |
·
Need-based
·
Must be enrolled at least half-time in a degree or certificate
program
·
Students accepting Direct Loan funds for the first time must
complete a Direct Loan Master Promissory Note before
receiving their loan funds. Click here for information.
·
First-time SMU borrowers must complete Direct Loan Entrance
Counseling. |
·
Repayment is deferred
and there is no interest while the student is enrolled at
least half-time.
·
Limited deferment provisions; see
Repaying Your Student Loans
and the
Dept. of Education website (information specifically for
teachers)
·
1.0% origination fee. Because of this
fee,
the actual Direct Loan amount applied to your University
account will be lower
than that listed on your award notice. |
Unsubsidized Federal Direct Stafford Loan
|
Description |
Eligibility/Requirements |
Terms |
|
·
Federally funded.
·
6.8% fixed interest rate
·
Existing Direct Loans can be
consolidated
·
Find additional information as well as a borrowing maximums
chart on the
Department of Education’s website. |
·
Must be enrolled at least half-time in a degree or certificate
program
·
Students accepting Direct Loan funds for the first time must
complete a Direct Loan Master Promissory Note before
receiving their loan funds. Click here for information.
·
First-time SMU borrowers must complete Direct Loan Entrance
Counseling. |
·
Interest begins accruing immediately; may be paid periodically
or
capitalized (see promissory note)
·
Repayment
of
principal is
deferred while the student is enrolled at least half-time.
·
Limited deferment provisions; see
Repaying Your Student Loans
and the
Dept. of Education website (information specifically for
teachers)
·
1.0% origination fee. Because of this fee,
the actual Direct Loan amount applied to your University account
will be lower
than that listed on your award notice. |
Apply for the Federal Direct Subsidized/Unsubsidized Loans
Once
you have filed the FAFSA and received your SMU Award Notification
Letter/Email, follow the steps below to complete your loan
application.
Step
1: Log
into your
Access.SMU
student account to accept your loan. You may accept, reduce, or
decline your loan.
***
If there is no loan award offered, please notify the Office of
Financial Aid via e-mail at enrol_serv@smu.edu
or contact your Financial Aid advisor to submit your request. ***
Step
2:
(If
you are a first-time SMU borrower) Complete the
Direct Loan Entrance Counseling Tutorial
and Quiz and submit the results to SMU (school code 003613)
Step
3:
(If
you are a first-time Direct Loan borrower) Sign the
Master Promissory Note (MPN).
All
students are required to use their PIN issued by the Department of
Education. If you do not have a PIN, you may request one from the
official
PIN site.
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