Federal Direct Loans

Marist College will participate in the William D. Ford Direct Lending Program.  The lender is the U.S. Department of Education.   The FAFSA must be completed before a Direct Subsidized or Unsubsidized Loan can be awarded.  

Federal Direct Subsidized Loan

The Interest rate for the Direct Subsidized Loan is always fixed for the life of that loan. However, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Please visit https://studentaid.gov/understand-aid/types/loans for the most current interest rates. Principal and interest are repayable beginning six months after graduation, or after the student ceases to be enrolled at least half-time. Interest on this loan is paid by the Federal Government while the student is enrolled at least half time in a degree program. Federal provisions eliminates the interest subsidy provided during the six-month grace period for Direct Subsidized Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. Students receiving a subsidized loan during this timeframe will be responsible for the interest that accrues on the loan during the grace period. If a student does not pay the interest accrued, the interest will be added (capitalized) to the principal amount of their loan when the grace period ends.

Direct Subsidized Loans are awarded to students with financial need determined by the FAFSA (Free Application For Federal Student Aid) form.

Federal Direct Unsubsidized Loan

For the Direct Unsubsidized Loans, the student is responsible for interest payments while in school. (You have the option to defer payments of interest and principal until after you graduate.) The Interest rate for the Direct Unsubsidized Loan is always fixed for the life of that loan. However, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Please visit https://studentaid.gov/understand-aid/types/loans for the most current interest rates. Repayment begins six months after graduation, or after you cease to be enrolled at least half-time. Students are awarded a Direct Unsubsidized Loan if their FAFSA information determines they have no financial need.

Important Direct Loan Information:

• A student must be at least half time status (6 credits) at all times to be eligible for this loan.
• If you complete a Direct Loan Master Promissory Note (MPN), as a freshman or during your first semester at Marist you may not have to complete another application for 10 years, or until you enter another College.
• The Direct Loan Master Promissory Note (MPN) is a promissory note under which you may receive multiple subsidized and unsubsidized loans over a maximum ten-year period.
• All Direct Loans are subject to fees. The fees will be deducted from the loan proceeds prior to disbursement. Disbursements are sent directly to Marist College, two per loan period.
• Direct Loan funds will be transferred electronically to your college account. These funds must be credited to your account in the Office of Student Financial Services within 3 days of disbursement to the college or your loan will be canceled and your funds returned to the Department of Education.
• First-time borrowers of a Direct Loan must complete an entrance counseling session and a master promissory note before you receive your loan. This ensures that you have received loan counseling and understand your loab repayment/borrowing responsibilities.
• All borrowers of a Direct Loan must complete an exit counseling session prior to withdrawal, transfer, leave of absence, or graduation from the college. This ensures that you have received loan counseling and understand your rights and responsibilities.
• Students changing from a Freshmen to Sophomore or from Sophomore to Junior status may be entitled to additional loan monies as per the Federal Direct Loan Limits (PDF).  Please contact the Office of Student Financial Services for further information regarding this increase.
• If you choose to withdraw or take a leave of absence from Marist College, you must notify the appropriate offices.  Please contact the Center for Advising and Academic Services to complete an official withdrawal/leave of absence form and then contact the Office of Student Financial Services to cancel your financial aid or complete a Title IV calculation, if eligible.  Please also notify the housing department if you have a housing arrangement and the Registrar for official transcripts, if necessary.  
• Please remember that a Federal Direct Loan is a loan, not a grant. You must repay the funds you borrow, plus interest and fees. If you have any questions, do not hesitate to contact the Office of Student Financial Services.
• The U.S. Department of Education's National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access your loan borrowing history, go to https://nsldsfap.ed.gov/404  All Title IV loans are reported to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. 
• Your Federal Direct loan is automatically processed for the amount shown as part of your financial aid package, unless you notify the Office of Student Financial Services otherwise.
• Please review the Federal Direct Loan Limits 
• UPDATE -Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013
  •  Maximum eligibility period to receive Direct Subsidized Loans There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period”. You can usually find the published length of any program of study in your school’s catalog. For example, if you are enrolled in a 4 -year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years).
  • Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.
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FEDERAL DIRECT LOAN APPLICATION PROCESS

First time Marist borrowers must complete the Direct Loan Entrance Counseling and Master Promissory Note. Please click on the link below to access the direct lending site.  Sign in using your FSA User ID and Password (same information that is used to compelte the FAFSA) to complete thiese requirements online.

Direct Loan Entrance Counseling/Master Promissory Note