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Federal Direct Loan Program & Information

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Two Female Students in Kayaks in Campus Pool

Applying for Federal Direct Loans

To apply for any Federal Direct Loans at UNC Asheville, you must first complete the Free Application for Federal Student Aid (FAFSA). Based on the information provided by the FAFSA, the Office of Financial Aid will award you the loans for which you qualify. 

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 

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.

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

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.

For additional information on Alternative Loan options please visit: www.finaid.org

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.