Federal Direct Loan Program
Federal Direct Loan Borrower Instructions
- You are required to accept the Federal Direct Loan via YOUR CONNECTION. Click here for instructions on accepting / declining your aid.
- All first-time borrowers at Fredonia must complete Entrance Counseling.
- All first-time borrowers at Fredonia must complete a Loan Agreement (Master Promissory Note).
Please allow 2-3 weeks processing time from the point of accepting your Stafford loans.
Per federal regulation Federal Direct Loans must be accepted prior to the end of each academic year otherwise they can't be processed.
All steps listed above must be completed in order for your Stafford Loan to be applied to your account.
Federal Direct Subsidized Loan
You are eligible for a subsidized Direct Loan if you are in school at least half-time and have financial need. With a subsidized Direct Loan, the federal government will pay the interest while you're enrolled at least half-time. Loans disbursed on or after July 1, 2012 will not be eligible for the interest subsidy for subsidized Direct Loans during the grace period.
150% Subsidized Usage Limit
Please note, there is a limit on the maximum period of time (measured in academic years) that a First-Time Borrower on or after July 1, 2013 can borrow in a subsidized Direct Loan. In general, a First-Time Borrower on or after July 1, 2013 may not receive Direct Subsidized Loans for more than 150% of the published length of the academic program.
Federal Direct Unsubsidized Loan
Unsubsidized Direct Loans are for students who do not have financial need. With an unsubsidized Direct Loan, you are responsible for paying the interest during all periods, starting from the date the loan is first disbursed.
|Loans with 1st disbursement after 10/1/2019||1.059%|
|Loans with 1st disbursement after 10/1/2020||1.057%|
*The Up-front Interest Rebate percentage is the amount given to borrowers after the Origination Fee has been deducted from each loan disbursed. Students must make all of the first 12 required monthly payments on time or the rebate amount will be added back to the principal balance of the loan.
|And Before||Interest Rate|
|July 1, 2019||June 30, 2020||4.529% Subsidized / 4.529% Unsubsidized|
|July 1, 2020||June 30, 2021||
2.75% Subsidized and Unsubsidized
* All Graduate Direct Unsubsidized Loans have a 4.30% interest rate for the 2020 - 2021 academic year.
Annual Loan Limits
|Year/Classification||Base Amount||Additional Unsubsidized Loan||Total|
|Junior or Senior||$5,500||$2,000||$7,500|
|Junior or Senior||$5,500||$7,000||$12,500|
Aggregate Loan Limits
- Undergraduate Dependent Students: $31,000 (no more than $23,000 Subsidized Direct Loan)
- Undergraduate Independent Students: $57,500 (no more than $23,000 Subsidized Direct Loan)
- Graduate Students: $138,500 (no more than $65,500 Subsidized Direct Loan)
Direct Loan Applicant Services
Phone No: 800.557.7394
Direct Loan Borrower Services
Direct Loan Consolidation