The US Government provides families access to federal student loans. ALL students borrowing from the Federal Direct Loan Program are required to sign a Master Promissory Note (MPN) and complete online Entrance Counseling to accept their Direct Loan. Federal loan funds will not be credited to the PSU bill until these items are completed.
Once a student is no longer enrolled they are also required to complete Exit Counseling, which reviews their loan usage and responsibilities regarding repayment of their loans.
The Federal Direct loan(s) awarded to you may be subsidized and/or unsubsidized, as described below:
A SUBSIDIZED Federal Direct loan is awarded on the basis of financial need. Interest will begin accruing at the end of your grace period. Your grace period is 6 months after you graduate, withdraw from school, or are no longer enrolled at least half-time.
An UNSUBSIDIZED Federal Direct loan is a non-need based loan. You will be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accrue (accumulate) while you’re in school, or during other periods of non-payment, it will be capitalized. This means the interest will be added to the principal amount of your loan at the time of repayment.
All Federal Direct Subsidized or Unsubsidized loans disbursed have a fee charged. For information on current interest rates and fees, please visit studentaid.gov.
Please note the following eligibility requirements must be met in order to be awarded Federal Direct Loans:
(1) Students must be matriculated (enrolled in a degree-seeking program) and enrolled at least half-time (6 credits or more per semester).
(2) Students cannot be in default on any Federal Loans.
(3) Federal Direct annual and aggregate loan limits apply.
- Dependent undergraduate students are eligible for up to $31,000 (no more than $23,000 of which may be subsidized).
- Independent undergraduate students and dependent students whose parents are ineligible for a Federal PLUS Loan are eligible for up to $57,500 (no more than $23,000 of which may be subsidized).
- Graduate Students are eligible for a maximum aggregate loan limit of $138,500. The graduate debt limit ALSO includes federal student loans received for undergraduate study.
(4) Students are awarded yearly federal loan limits based upon number of credits earned as outlined below:
Number of Credits
Annual Eligibility Subsidized/Unsubsidized
0 – 29
30 – 59
- The PLUS loan is solely in the name of a Parent(s), not the student, and is not transferable.
- Approval or denial for the PLUS loan is based on the parents’ credit history.
- There is an origination fee applied to the amount requested for a PLUS loan, this impacts the actual amount paid on the student’s bill. Fees and rates are fixed for an individual loan, however, they can change each academic year based on federal mandate. For the most current origination fee and interest rate on the PLUS loan please visit studentaid.gov.
- Only a parent can apply for a PLUS loan.
- A parent is defined as the student’s biological or adoptive mother or father, regardless of whether they are the “custodial” parent on the FAFSA.
- A step-parent is eligible to borrow a PLUS loan IF he or she is reported on the FAFSA along with the custodial parent.
- A legal guardian is not considered a parent for federal student aid purposes.
- More than one parent can apply for a PLUS loan for a dependent student as long as the total financial aid package does not exceed the Cost of Attendance.
- The maximum amount that a parent can borrow in the PLUS loan is the Cost of Attendance minus any financial aid received by the student.
- If your student intends to either reduce or decline the Federal Work Study award to increase the parent’s eligibility for the Federal Direct PLUS Loan, please submit a request at least a day prior to applying for the loan.
For non-degree graduate students (any term), Continuing Education undergraduate students, and matriculated undergraduate students attending Early Spring or Summer terms, payment for classes is due at the time of registration. We strongly recommend that you apply early for your loan to ensure that it’s in place by the billing or registration due dates.
Please note: PSU does not enter into Consortium Agreements with other institutions for purposes of accessing federal financial aid programs
Although the lending institution of choice is completely up to you, we strongly recommend that you consider the following when making your decision:
- Continuing Education loans are private loans through a lending institution and not part of federally funded programs.
- Continuing Education loans are more expensive than federal student loans and should only be used when all other options have been exhausted.
- Be sure you have applied for all available assistance before pursuing a Continuing Education Loan.
- Continuing Education loans are in the student’s name, and a cosigner may be required. Once a complete application has been received, the lender will perform a credit check and will let you know if your application has been approved.
Please contact the following for more information on Continuing Education Loans:
Sallie Mae Smart Option Loan
http://www.salliemae.com or 877-279-7172
http://edvestinu.com/private.asp or 1-603-227-5423
Studentaid.gov and Loan Repayment
Studentaid.gov regularly receives data from schools, guaranty agencies, the Direct Loan program, and other Department of Education programs to provide a centralized, integrated view of all Title IV loans and grants you may have received as a student. You may access all of your current and prior Federal grant and loan information via this website. Parents may access Studentaid.gov for information on the Federal Direct PLUS loans.
Please note: Information on a pending loan will not be available until approximately 2 weeks after the loan has disbursed to the school.
There are currently several different servicing agencies that your Federal loans may be serviced through. To verify who is currently servicing your loans, log on to studentaid.gov with the same FSA ID that was used on your FAFSA. Once logged in you should have several options to the right of your Dashboard:
- Upcoming Payments: When you have entered repayment (at the time you have graduated, withdrawn, taken a leave of absence, or enrolled less than half-time), you may review the amount and date due for your next payment.
- My Loan Servicer: This link will provide contact information for the company that services your Federal Loan(s) so that you may reach out to them with any questions you have about your loan(s) or repayment.
- Quick Links: This provides you with easy access to frequently needed federal aid information. Exit Counseling is required for all students who utilized Federal student loans but are no longer enrolled in school. The Loan Simulator can assist with information regarding repayment options.
- My Info: By choosing the “My Aid” option, you can view all federal aid received while attending school as well as additional information about your aggregate loan limits, etc.