Hours & Staff Information
Federal Direct Unsubsidized and Subsidized Student Loans
How to apply for a Federal Direct Student Loan
Note: Students must complete the FAFSA every year to continue to apply for a Federal Direct Student Loan.
The Subsidized Federal Direct Student Loan
Eligibility for subsidized loans is based on financial need as determined by federal guidelines. A loan is called "subsidized" because the government pays interest for the student while the student is at least half-time enrolled in school (6 or more hours at ASUMH).
The Unsubsidized Federal Direct Student Loan
This type of loan is available to students regardless of income or need. With an unsubsidized loan, you are responsible for all interest that accrues during the time in school, grace and deferment periods. You may choose to pay the interest portion only while in school, which would keep your loan balance at principal. If you choose to defer such payments, the interest will be capitalized (added back to the principal at time of repayment).
What is a Master Promissory Note?
A Master Promissory Note is a signed agreement promising payment of a sum of money, i.e. by signing a Master Promissory Note for a Federal Direct Loan the student is agreeing to repay their loan proceeds to their designated servicer. Complete your Master Promissory Note (MPN) at www.studentloans.gov.
Why must a student complete an entrance interview?
The Entrance Interview provides the student detailed information on the Federal Direct Student Loan Program. It is very important for the student to understand their rights and responsibilities when borrowing money for school. Complete your Entrance Interview at www.studentloans.gov.
How much can I borrow?
When do I begin to repay my Federal Direct Loans?
Each student is given a period of time before loan repayment begins; this is called a “grace period." The Federal Direct Loan grace period is six months after the student graduates, leaves school, or drops below half time status. Once a student exceeds their grace period, they must begin loan repayment. Federal Direct Loans are repaid to the holder of the loan, with 10-25 years to repay, depending on the total amount the student has borrowed.
Go to www.studentaid.ed.gov for additional information.