Federal Direct Loan Program

The Federal Direct Loan Program offers several low interest loans to students. The lender is the U.S. Department of Education rather than a bank or other financial institution (which you may have if you previously borrowed under the Federal Family Educational Loan Program). Loan eligibility and amounts are based on completion of the Free Application for Federal Student Aid and may be completed online at www.fafsa.ed.gov. Students must complete the online Master Promissory Note and the Entrance Interview at www.studentloans.gov.

The Federal Direct Loan Program offers:

Federal Direct Subsidized Loans
The amount you may borrow per year is based on your level of enrollment, financial need, and cost of attendance. "Subsidized" means the government pays the interest on your loan while you are in school and during your six month grace period after you leave school.

Federal Direct Unsubsidized Loans
Independent students may borrow between $6,000 – $7,000 based on their level of enrollment and cost of attendance. Dependent students may borrow up to $2,000 per academic year. "Unsubsidized" means you are responsible for paying the interest while in school and during your six month grace period after you leave school.

Federal Direct PLUS Loans
Parent Loan for Undergraduate Students (PLUS) is available to parents of dependent students that wish to borrow up to their child's cost of education or for additional education expenses not covered by other forms of financial aid. A credit check may be required as part of the loan approval.

For more information on Direct Loan interest rates, fees, and student rights and responsibilities; and to begin the Direct Loan Entrance Interview Process and to apply for a Federal Direct Student Loan, please visit their Web site at www.studentloans.gov.

Student loan defaults are on the rise! Edward Waters College encourages you to pursue all other forms of financial assistance before deciding on if you should obtain a loan and how much you should borrow. Please visit the Office of Financial Aid regarding other aid options available and for assistance on how much student loan you may need.

Remember, the loan must be repaid to the Federal government. Failure to do so will result in your wages being garnished, your credit tarnished, and any tax refund intercepted by the government and other sanctions. Please borrow wisely!