Federal Direct Loans
Federal Direct Loans are low-interest loans for students and parents to help finance the cost of education at a post-secondary institution. Under the Federal Direct Loan Student Program, students work with the Office of Financial Aid in conjunction with the U.S. Department of Education to obtain these loans.
Benedictine University is a Title IV funded institution and a participant in the Federal Direct Student Loan Program. Federal financial aid is available to those who apply and qualify via the Free Application for Federal Student Aid (FAFSA).
The Federal Direct Loan Program is a program that makes low-interest loans to students while they are enrolled at least half-time in a degree-seeking program. Borrowers of Federal Direct loans benefit from a stable source of funding as loans are disbursed directly from the U.S. Department of Education and later managed by a loan servicer.
As part of your offer notification, Benedictine University will notify you of your student loan eligibility according to the results of your FAFSA.
- Federal Direct Subsidized Loans are based on financial need. The federal government “subsidizes” the loan by paying any accrued interest while the student is enrolled at least half-time.
- Federal Direct Unsubsidized Loans are low interest loans that are not based on financial need. The student is responsible for paying the interest from the date the loan is disbursed; however, they may choose to defer these payments while they are in school.
Both subsidized and unsubsidized loans are eligible for payment deferment while the student is enrolled at least half-time. For further information on Federal Direct Loans, including origination fees and interest rates, visit Federal Student Aid.
STEPS TO BORROW
If you are a first-time Federal Direct Loan borrower, you must complete the following, after you complete the FAFSA, in order for federal funding to be disbursed:
- Complete Loan Entrance Counseling
The federal government requires you to complete Entrance Counseling to ensure that you understand the financial responsibilities and obligations you are accepting.
- Complete Master Promissory Note (MPN)
The subsidized/unsubsidized MPN is a legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan servicer.
For further information on federal student loans, visit Federal Student Aid.
Federal Student Aid