2012-2013 Direct Loan Program & Information
Federal Direct Subsidized Loan
Awarded on the basis of financial need as determined by the FAFSA. Students must be enrolled in at least 6 credit hours. The Federal government pays the borrower's accrued interest while the student is enrolled at least half-time, thereby "subsidizing" these loans. Repayment will be begin 6 months after the student is no longer registered at least 6 hours.
IMPORTANT UPDATE
Grace Period Interest Subsidy - Public Law 112-74 amended HEA section 428(a)(3)(A)(i)(I) to temporarily eliminate the interest subsidy provided on Direct Subsidized Loans during the six month grace period provided to students when they are no longer enrolled on at least a half-time basis. This change will be effective for new Direct Stafford Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.
All Undergraduate subsidized loans for the 2012-2013 Academic Year have a 6.8% interest rate.
Federal Direct Unsubsidized Loan
Students must file a FAFSA and be enrolled in at least 6 credit hours. The borrower is responsible for accrued interest throughout the life of the loan. Repayment will be begin 6 months after the student is no longer registered at least 6 hours.
All unsubsidized loans for the 2011-2012 Academic Year have a 6.8% interest rate.
Loan Limits
Dependent Undergraduates
Freshmen (0-29 credit hours): $5,500
Sophomore (30-59 credit hours): $6,500
Junior (60-89 credit hours):$7,500
Senior (90+ credit hours):$7,500
The maximum total debt from Direct Loans that a dependent undergraduate may borrow is $31,000 (no more than $23,000 of which can be subsidized).
Independent Undergraduates
(Also for dependent undergraduates whose parents are denied a Direct PLUS Loan.)
Freshmen (0-29 credit hours): $9,500 (No more than $3,500 of this amount may be subsidized)
Sophomore (30-59 credit hours):$10,500 (No more than $4,500 of this amount may be subsidized)
Junior (60-89 credit hours): $12,500 (No more than $5,500 of this amount may be subsidized)
Senior (90+ credit hours): $12,500 (No more than $5,500 of this amount may be subsidized)
The maximum total debt from Direct Loans that an independent undergraduate may borrow is $57,500 (No more than $23,000 of of which can be subsidized).
MLA Students
Each Academic Year: $20,500 (ENTIRELY Unsubsidized.)
The maximum total debt from Direct Loans that an MLA student may borrow is $138,500.
IMPORTANT Eligibility Requirements for MLA Students
Federal regulations state that a student must be AT LEAST half time to be eligible for Federal Direct Loans. According to Federal Regulations, "to be enrolled half time, a student must be taking at least half of the course load of a full-time student." At UNC Asheville, a full time Graduate schedule is at least 9 credit hours. Therefore, half of the 9 credit hour full-time course load would be rounded to 5 credit hours. Even though the UNC Asheville's MLA program states that 3, 4 and 5 credits are half time, for purposes of Federal Direct Loans, ALL MLA STUDENTS MUST BE ENROLLED IN AT LEAST 5 CREDIT HOURS TO BE ELIGIBLE FOR FEDERAL DIRECT LOANS.
Federal Direct Parent PLUS Loan
Available to parents of undergraduate dependent students who are enrolled in at least 6 credit hours. You must have a FAFSA on file to be eligible to apply for a PLUS Loan.
Direct PLUS loans for the 2012-2013 Academic Year have a 7.9% interest rate.
2012-2013 Federal Direct PLUS Loan Application (Coming Soon)
2012-2013 PLUS Loan Statement of Understanding
Parent PLUS Loan Adjustment Form
Entrance Counseling
Entrance counseling is required for all first time borrowers.
Complete your Entrance Counseling here.
Master Promissory Notes (MPN)
Master Promissory Notes must be signed if you are a first time borrower or have not previously signed a Master Promissory Note with Direct Loan.
You may sign your Direct Loan MPN here.
Help - Contact Information
Have a question about Title IV federal student aid or one of the services the Department of Education provides? Contact one of our Customer Service Centers or Federal Student Aid Offices. If you are not sure which Service Center to call, contact the Research and Customer Care Center at 1-800-433-7327, or www.myedaccount.com
Loan Servicing Centers for Students Direct Loan Servicing Center (ACS)
Phone: 800/848-0979
Fax: 800/848-0984
TDD/TTY: 800/848-0983
Overseas borrowers: 315/738-6634
Web site: www.myedaccount.com
Office Hours: 8:00 a.m. - 8:30 p.m. (ET), Monday through Friday.
Department of Education Student Loan Servicing Center (ACS)
Phone: 800/508-1378
Fax: 315/738-2232
TDD/TTY: 800/662-1220 within New York State
TDD/TTY: 800/855-2880 outside New York State
Web site: www.ed-servicing.com
Office Hours: 8:00 a.m. - 11:00 p.m. (ET), Monday through Friday.
FedLoan Servicing (PHEAA)
Phone: 800/699-2908
Fax: 717/720-1628
TDD/TTY: 800/722-8189
Overseas borrowers: 717/720-1985
Web site: www.myfedloan.org
Office Hours: 8:00 a.m. - 9:00 p.m. (ET), Monday through Friday.
Great Lakes Educational Loan Services, Inc.
Phone: 800/236-4300
TDD/TTY: 800/236-4300
Overseas borrowers: 608/246-1700
Web site: www.mygreatlakes.org
Office Hours: 7:00 a.m. - 8:45 p.m. (CT), Monday through Thursday. 7:00 a.m. - 5:45 p.m. (CT), Friday.
MOHELA
Phone: 888/866-4352
TDD/TTY: 636/532-5189
Overseas borrowers: 888/866-4352
Web site: www.mohela.com
Office Hours: 8:00 a.m. - 8:00 p.m. (CT), Monday through Thursday. 8:00 a.m. - 5:00 p.m. (CT), Friday.
Nelnet
Phone: 888/486-4722
Fax: 877/402-5816
TDD/TTY: 888/486-4722
Overseas borrowers: 303/696-3625
Web site: www.nelnet.com
Office Hours: 8:00 a.m. - 8:00 p.m. (ET), Monday through Friday.
Sallie Mae
Phone: 800/722-1300
Fax: 866/266-0178 (within United States)
Fax: 570/706-8563 (outside United States)
TDD/TTY: 877/713-3833
Overseas borrowers: If toll-free (no cost per call) number cannot be accessed, use 317/806-0580 (cost per call)
Web site: www.salliemae.com
Office Hours: 8:00 a.m. - 9:00 p.m. (ET), Monday through Thursday. 8:00 a.m. - 8:00 p.m. (ET), Friday.
Federal Loan Repayment
Your loans aren’t going to go away and you’ll want to repay them as quickly and easily as possible.
You will receive a notice on exit counseling when you graduate or attend school less than half-time. The exit counseling will provide information on your loans and when repayment begins.
When you graduate or withdraw you will have six months before your first payment is due. This is called a grace period. (PLUS Loans do not have a grace period). This time allows you to get financially settled, select your repayment plan and determine the amount of income you need to put toward your student loan each month.
There are flexible repayment options to help students manage this important financial responsibility. Contact your loan provider to discuss specific options.
Loan Repayment Calculators
Direct Lending Loan Calculators
More Information on Repaying Your Student Loans
Special Consolidation - January 2012 - June 30th, 2012
Limited time Loan Consolidation: The U.S. Department of Education is offering a Special Direct Consolidation Loan for a limited time, allowing you to move your eligible federal student loan(s) from your current lender(s) to one federal servicer. FedLoan Servicing, your current federal servicer, will be or may have recently contacted you to make you aware of your eligibility and provided instructions for applying for the Special Direct Consolidation Loan.
http://studentaid.ed.gov/PORTALSWebApp/students/english/specialconsolidation.jsp
Deferment
A deferment is a period in which repayment of the principal balance is postponed. During a deferment, if the loan is subsidized, the government pays the interest charged. For unsubsidized, PLUS, unsubsidized consolidation, and PLUS consolidation loans in deferment, you are responsible for the interest that accrues during the deferment period. If you have unsubsidized loans, when you re-enter repayment at the end of the deferment period, any unpaid interest capitalizes (is added to the principal balance).
For complete information on deferment of your loan, contact your lender(s). If you are not eligible for a deferment you may still be eligible for a forbearance.
Forbearance
A forbearance is an arrangement to postpone or reduce your monthly payment amount for a limited and specific period during which you are charged interest. If you indicate a temporary inability, but willingness to pay the loan(s), you may ask for or be offered a forbearance. Interest that accrues during a forbearance is the responsibility of the borrower. When you re-enter repayment at the end of the forbearance period, any unpaid interest capitalizes (is added to the principal balance).
For complete information on the forbearance of your loan, contact your lender(s). If you are not eligible for a forbearance you may still be eligible for a deferment.
Who is/are my lender(s)?
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct/FFELP Loan program, and other Department of Education programs. Also login to www.myedaccount.com
NSLDS Student Access provides a centralized, integrated view of all loans and grants so that students can access and inquire about their loans and/or grant data.
More Information on Repaying Federal Student Loans
Student Aid on the Web has more information on repaying your student loans. We are also more than happy to discuss your options here in the office. Feel free to contact us.
Private Education Loans
Alternative Education Loans may be necessary for students who do not qualify for Federal Direct Loans or need additional funds to cover their cost of attendance. These loans are private loans offered by individual lenders that require the borrower to have good credit or to obtain a co-signer with good credit. Be advised that the interest rates are variable from lender to lender and are higher than those of Federal Direct Loans.
The Office of Financial Aid cannot certify any Alternative Education Loans until the student is enrolled in classes. In addition, the Office of Financial Aid will not certify any amount that takes the student over their cost of attendance.
Private Education Loan Self Certification Form
The Higher Education Opportunity Act (HEOA) added a section to the Truth In Lending Act to require that before a private educational lender may consummate a private education loan for a student in attendance at an institution of higher education, the private education lender must obtain the completed and signed Self-Certification Form from the applicant.