Federal Direct Loan Essay

777 Words4 Pages
p2011-2012 William D. Ford Federal Direct Loan Please complete ONLY ONE BOX and all shaded areas below that apply Students must be enrolled a minimum of 6 credits hours to apply and receive loan at time of disbursement. PLEASE CHOOSE OPTION 1 OR OPTION 2. Request a Loan for Fall 2011/Spring 2012: _____ Fall 2011/Spring 2012 Are you currently in default (in collections) on a federal student loan? Please check the semester you will begin attendance at Fayetteville Technical Community College: _____ Spring 2012 _____ YES _______ NO State ______________________ Driver’s License or State ID Number # ___________________________________ Option 1: DO YOU WANT A SUBSIDIZED LOAN ONLY? Amount Requested $_________________ ______ YES ______…show more content…
Financial need is determined based on the information the student submits on their FAFSA application. Students may borrow up to $3,500 per academic year as a freshman (less than 31 credit hours earned) and $4,500 per academic year as a sophomore (31 or more credit hours earned). The federal government pays the interest while the student is in school at least halt time, during the six-month grace period and during all deferment periods for the Federal Direct Subsidized Loan. If a student requests a Federal Direct Subsidized Loan, based on financial need and academic eligibility, FTCC Financial Aid will award the maximum amount authorized. Students may decline either part or the entire award amount if so desired. A Federal Direct Unsubsidized Loan is a low interest loan made by the Department of Education which allows students to borrow who are not eligible or have reduced eligibility for a Federal Direct Subsidized Loan. The maximum amount a student may borrow is the same as the Federal Direct Subsidized Loan. Independent students may borrow up to an additional $6,000 per academic year, depending on eligibility. Dependent students may borrow up to an additional $2,000 per academic year, depending on eligibility. The interest rate for both loans is the same; however, the federal government DOES NOT pay the interest for the student receiving an Unsubsidized Loan. This means the student is responsible for paying the interest during all school semesters, during the six-month grace period and during all deferment periods for the Federal Direct Unsubsidized Loan. Students who fall below the half time level in any semester, for which they are receiving either loan, will have those loans cancelled and may be responsible for repayment of some or all of the funds disbursed to them. Student should speak with

More about Federal Direct Loan Essay

Open Document