The Federal Direct Loan Program provides low-interest loans to help pay for the cost of a student’s education after high school.  The lender is the U.S. Department of Education, rather than a bank or other financial institution. Please note that College of The Albemarle will no longer participate in the William D. Ford Direct Loan Program after the 2012 Spring semester.

Important Deadline Information for 2011-2012 Academic Year:

• February 23, 2012 – Final day to go to the Department of Education’s website to complete the Spring 2012 Federal Direct Loan Master Promissory Note and online Entrance Counseling
• February 24 - Final day to request adjustments to previously approved Direct Loans
• February 27, 2012 – Final day to register for COA Group Loan Workshop
• February 28, 2012 – Final COA Group Loan Workshop

With Direct Loans, you:

• Can borrow directly from the federal government and have a single contact – the Direct Loan Servicing Center – for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
• Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans.
• Can choose from several repayment plans that are designed to meet the needs of almost any borrowers, and you can switch repayment plans if your needs change.

It is important for students to understand that Direct Loans must be repaid whether or not the student completes the program or finds suitable employment.  Students are encouraged to borrow conservatively.  Loan funds must be used for school related expenses only.

Minimal Requirements for Borrowing for the Federal Loan Program:

• Be a U.S. Citizen or eligible non-citizen
• Be enrolled at least half-time (6 credits) in an eligible degree program
• Be in good academic standing
• Not be in default on a student loan
• Not owe a refund to the Pell Grant or SEOG grant program

Direct Loan Program – The Direct Loan Program has low-interest loans that undergraduates, graduates, and parents of dependent students may obtain from the U.S. Department of Education.  The program includes the Federal Subsidized Loan, the Federal Unsubsidized Loan, and the Federal PLUS Loan.  These loan programs were created by Congress to help all eligible students and parents, with or without financial need, pay for the student’s educational expenses.

Subsidized and Unsubsidized Loans – Students with financial need determined by the FAFSA, may qualify for a Subsidized loan, which means the federal government will pay the interest while you are in school.  Students who do not have financial need may borrow an Unsubsidized loan.  For these loans, the student is responsible for the interest while in school.

Federal Loan Limits - Annual – The government sets the maximum amount a student can borrow annually - this depends on dependency status and grade level.  Your year in school is based on whether or not you have completed 32 credits towards your program of study.  College of The Albemarle can tell you your dependency status and year in college.

Current Annual Loan Limits:

The actual loan amounts and types of loans that you are eligible to receive each year are determined by your school, based on such factors as your cost of attendance, Expected Family Contribution, other financial aid, and the length of your program.  Therefore, the actual amounts you are eligible to borrow may be less than the maximum annual amounts determined by the Department of Education.

Federal Loan Limits – Aggregate - The government sets the maximum amount students can borrow throughout their lifetimes, depending on their dependency statuses.

College of The Albemarle Federal Loan Check List – This Check List will identify the steps you need to take to apply for a Federal Direct Loan at College of The Albemarle for the 2011-2012 Academic Year.

Entrance Counseling – Online Entrance Counseling, In Person Group Entrance Counseling, and Individual Entrance Counseling will be required for all students who are receiving a federal loan.  Even if you had federal loans at other schools, this Entrance Counseling is required.  The College is not allowed to disburse loan funds to you until the Entrance Counseling requirement has been completed.

Online Entrance Counseling can be completed at the Department of Education website.

Students attending Group Entrance Counseling will receive several Department of Education publications relating to the Federal Direct Loan program.  Group and In Person Entrance Counseling will cover topics such as terms and conditions of Title IV loans, the use of the Master Promissory Note, eligibility requirements and criteria for awarding Direct Loans, disbursement of aid, rights and responsibilities of students receiving Direct Loans, accrual/capitalization/repayment of interest, sample loan repayment plans, contact information for the National Student Loan Data System (NSLDS), the requirement to report certain changes in enrollment as well as changes in contact information, the importance of loan repayment, and consequences of default.

Students attending In Person Entrance Counseling will submit loan requests, discuss options for accrual/capitalization/repayment of interest, view sample monthly repayment plans based on their loan request, explore future career goals, and will receive a copy of their signed Borrower’s Rights and Responsibilities statement.

Exit Counseling – Students who have received Federal Direct Loans are required to complete Exit Counseling before they graduate, drop below half-time enrollment or leave school.   Opportunities for both Online and/or In Person Group Exit Counseling will be offered.

Online Exit Counseling can be completed at the National Student Loan Data System website.

Group Exit Counseling will be offered on campus and students will be provided Department of Education Exit Counseling materials.  Discussions will include general information such as qualifications for deferment or forbearance, repayments plans, the seriousness of the repayment obligation, consequences of default, contact information for NSLDS and the Student Loan Ombudsman’s Office.  Students will also be provided with specific information about their outstanding Direct Loans and contact information for their assigned servicer.

Updated January 2012 - Subject to change without notice.