All Federal Direct Loans are guaranteed by the federal government and are provided through the U.S. Department of Education. Undergraduate students who are degree seeking and enrolled at least half-time are eligible to qualify for Federal student loans. All first year, first time student borrowers at Williamson College, must complete Student Loan Entrance Counseling and complete a Master Promissory note at www.studentloans.gov.
Print the above chart which details loan information including a repayment breakdown for the Direct Loans.
Federal Direct Subsidized Loan
- Loans are need-based and interest is paid by the federal government during student’s enrollment, grace and deferment periods.
- Loans are “variable fixed”, meaning borrowers might receive a new rate with each new loan, but then that rate would be fixed for the life of the loan.
- Interest rate is fixed at 3.76% for academic year 2016-17, with 10 years to repay.
- Maximum amounts: $3500 for freshmen, $4500 for sophomores, and $5500 for juniors and seniors.
- An origination fee of 1.069 for loans first disbursed on or after October 1, 2016 and is deducted in the disbursed amount.
- Repayment begins six months after the student graduates or drops below half-time enrollment.
- Direct Loan statutory requirements now limit first-time borrower’s eligibility for Direct Subsidized Loans to be period not to exceed 150% of the length of the borrower’s educational program (the “150% limit”).
Federal Direct Unsubsidized Loan
- Loans are made to eligible students, but the student does not have to demonstrate financial need to be eligible for the loan.
- Dependent students eligible for a subsidized Direct Loan can receive up to an additional $2,000 unsubsidized.
- Loans are “variable fixed”, meaning borrowers would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan.
- Interest rate is fixed at 3.76% for 2016-17, with 10 years to repay.
- Loans are non-need based with interest accruing at a time of disbursement; principal is deferred and interest can be paid quarterly or capitalized and added to the principal amount with repayment begins.
- All other terms are the same as for the subsidized loan above.
Recipients of the Federal Direct Loans are required to complete an Loan Exit Counseling session upon graduation, dropping below half-time status, with enrollment breaks of greater than 45 days, or official or unofficial withdrawal from the College.
Federal Direct PLUS Loan
Williamson College encourages students and parents to apply for grants and student loans before any parent plus loan is processed, using the FAFSA.
The Federal Direct PLUS Loan program offers loans to parents of undergraduate dependent students enrolled at least half-time, to help subsidize their child’s education. Direct PLUS Loan borrowers must be biological or an adoptive parent or student’s step parent, if biological or adoptive parent has remarried at the time of application. Loan credit approval is required by the Department of Education. Interest on the PLUS loans begins to accrue upon disbursement of the loan. Parents will apply and qualify for PLUS loans annually.
- Parents must complete the Williamson College PLUS application.
- Parent can specify amount of their loan, however, it cannot exceed the Cost of Attendance less all other assistance the student has been awarded.
- Interest rate is fixed at 6.31% for 2016-17, with 10 years to repay.
- Repayment typically begins within 60 days of disbursement, however, deferments are offered.
- Parent PLUS loans will have a 4.276% origination fee for loans first disbursed on or after October 1, 2016. Origination fees are charged when funds are disbursed to the school.
- If you have an adverse credit history, you may still obtain a Direct PLUS loan by 1)obtaining an endorser who does not have an adverse credit history, 2)Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history. (With either option, PLUS counseling must be completed by the PLUS loan borrower).
PLUS loan approvals received will be evenly divided and disbursed between two terms which cover the award year. If the loan is be be for one term, the parent must indicate the information on the Williamson College PLUS application. Once the PLUS loan is approved, a PLUS Loan Master Promissory Note must be completed for funds to be released to the school.