Docstoc

Ford Direct Federal Student Loan - West Chester University

Document Sample
Ford Direct Federal Student Loan - West Chester University Powered By Docstoc
					                  William D. Ford Federal Direct Loan
In accordance with federal law, beginning with the 2010-11 academic year, all West Chester
University students will borrow through the Federal Direct Loan program, which replaces the
Federal Stafford loan program or FFELP.

A Federal Direct Subsidized Loan is based on financial need as determined by the FAFSA
(Free Application for Federal Student Aid). It helps students meet financial need after other aid
and the family’s EFC (expected family contribution) are deducted from the student’s cost of
attendance. Students must be enrolled for at least 6 credits per semester in a degree or
qualifying certificate program, and are limited to the federal maximum loan amount as listed in
the chart below. The interest rate for undergraduate students for the 2010-11 year is fixed at
5.4%. The interest rate for graduate students is fixed at 6.8%. Principal and interest are deferred
until 6 months after the student laves school or drops below half-time.

A Federal Direct Unsubsidized Loan is not based on financial need. Students must do a
FAFSA. Students must be enrolled for at least 6 credits per semester in a degree or qualifying
certificate program, and are limited to the federal maximum loan amount minus any amount of
subsidized loan awarded. The interest rate for both undergraduate and graduate students is
fixed at 6.8%. Principal is deferred, but interest must either be paid by the student while in
school, or can be capitalized for the time in school and through the 6-months after the student
leaves school or drops below half-time.

TO APPLY:
First-Time Borrowers:

   1.    File the Free Application for Federal Student Aid (FAFSA) (make sure to check box 31)
   2.    Monitor your financial aid awards on our website at www.wcupa.edu
   3.    Accept your Federal Direct loan on-line at wcupa.edu/financial aid
   4.    Do Direct Loan Entrance Counseling AND e-sign your Master Promissory Note (MPN) at
         www.StudentLoans.gov using your FAFSA pin number



Students who Previously Borrowed Federal Stafford Loans or Federal Direct
Loans:

    1.   File the Free Application for Federal Student Aid (FAFSA) (make sure to check box 31)
    2.   Monitor your financial aid awards on our website at www.wcupa.edu
    3.   Accept your Federal Direct loan on-line at wcupa.edu/financial aid
    4.   E-Sign your Master Promissory Note (MPN) at www.StudentLoans.gov using your
         FAFSA pin number
                                  Notes about Direct Loans

   √ Loans are credited to students’ accounts at the beginning of each semester; half of the total
net loan amount is credited to each semester

   √Loans will not disbursed by the federal government until the MPN is signed, and federal
verification and entrance counseling are complete where required

   √The federal government deducts a .5% fee from each loan disbursement before sending
funds to the University

   √Students may cancel all or a portion of their loans within 14 days after the start of the
semester for which the loan funds are intended—students must make this request in writing to
the Financial Aid Office

  √Students are required to do entrance counseling before the first loan is disbursed and exit
counseling before graduation, and upon withdrawal or dropping below half-time (6 credits)

  √December graduates (both undergraduate and teacher’s certification) are subject to
proration of their loan amounts based on the number of credits

  √Students whose parents are denied a PLUS (Parent Loan for Undergraduate Students) may
borrow up to the maximum amount of unsubsidized loan as an independent student at their
appropriate grade level. The federal government will notify the University of the PLUS denial
and the Financial Aid Office will automatically award the additional unsubsidized loan.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:16
posted:7/13/2011
language:English
pages:2