A federal Direct Loan is a government-issued loan, with beneficial terms, offered to eligible students in accredited American institutions of higher education. Direct Loans are available to undergraduate students as Direct Subsidized Loans and Direct Unsubsidized Loans.
If you qualify for a Direct Subsidized Loan, the federal government (U.S. taxpayers) will pay the interest while you remain in school at least half-time pursuing a degree. Subsidized loan eligibility is based on financial need as determined by the federal need analysis. (Thomas Aquinas College uses a different need analysis to determine your eligibility for institutional aid.) If you are not eligible for a Direct Subsidized Loan, you may always apply for a Direct Unsubsidized Loan. With an unsubsidized loan, interest begins to accrue while you are in school. Interest on an unsubsidized loan may be paid quarterly, or accrued until the borrower enters repayment. It is possible to receive both a Direct Subsidized Loan and a Direct Unsubsidized Loan for the same period. The total of your combined Direct Loans may not exceed the annual loan limits for your grade level.
|Maximum Annual Direct Loan Limits and
Thomas Aquinas College’s Loan Expectations
2015-2016 Academic Year
|Total Subsidized and Unsubsidized
|freshmen||$5,500 total, with up to $3,500 subsidized||$3,250|
|sophomores||$6,500 total, with up to $4,500 subsidized||$4,250|
|juniors||$7,500 total, with up to $5,500 subsidized||$5,250|
|seniors||$7,500 total, with up to $5,500 subsidized||$5,250|
Advantages of the federal Direct Loan Program
Direct Subsidized and Unsubsidized Loans have an origination fee of 1.073 percent that is retained by the lender to offset the cost of insuring the loan.
Disbursements are usually made in two installments, one each semester. The College will notify you when funds are received and deposited into your college account.
Repaying Your Loan
Students are required to begin repaying their Direct Loan six months after they graduate, leave school, or drop below half-time attendance. Borrowers generally have 10 years to repay these loans. Under a level repayment plan, the monthly payment on $18,000 in Direct Loans with an interest rate of 4.66 percent would be $188. (See additional information  about the Direct Loan Program.)
All first-time Direct Loan borrowers will need to complete the following three steps to apply for a Direct Subsidized or Unsubsidized Loan.
Important: To complete the first two steps, you will need your Social Security number, your date of birth, and your Department of Education PIN (the same PIN used to complete your FAFSA ). If you don't know whether you have a PIN, you can easily check the status of your PIN or request a duplicate PIN at www.pin.ed.gov .
Step One: Complete Online the Direct Loan Entrance Counseling
Step Two: Complete a Federal Direct Loan Master Promissory Note (MPN) Online
Additional information you will need to complete your Federal Direct Loan MPN includes:
Go to the Direct Loan website , sign in using your Social Security number, date of birth, and PIN, then click on “Complete Master Promissory Note,” then click on “Subsidized/Unsubsidized.” Fill in and submit the necessary information. (If you had a Direct Loan in the prior year at Thomas Aquinas College you have already completed the MPN. You do not have to complete another.)
Steps One and Two should take approximately 30 minutes each. Allow time to complete each step in a single session. If you decide to exit the website before completing a step, you will be required to begin that step again.
After each step is completed, the Financial Aid Office at Thomas Aquinas College will receive an electronic notification.
Step Three: Accept your Direct Loan
After all three steps are completed, the Financial Aid Office will be able to process your federal Direct Loan(s).