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Student Loan Information
Federal Direct Loans
Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of college. The federal direct loan lender is the United States Department of Education (DOE). The U.S. Department of Education uses a third party servicer to service all federal loans. Examples of federal loan servicers are: Great Lakes, Navient, Nelent, and FedLoan. Students and parents make payments directly to the federal loan servicers. There are three types of Direct Stafford Loans: Direct Subsidized, Direct Unsubsidized and Direct Parent PLUS.
To find out who your federal loan servicer is go to NSLDS.
Loan Process (to be completed each academic year):
- Complete FAFSA
- Turn in any requested documents (check Campus Connect)
- Complete a Loan Request and meet with a Financial Aid Advisor
- Complete Entrance Counseling
- Electronically sign the Master Promissory Note (MPN)
Direct Subsidized Loans
Direct Subsidized loans are a need based loan program for undergraduate students that are enrolled at least half time (>6 credits) and have remaining unmet need in their student budget. There is a limit to the amount of loans a student can be awarded each year and semester. First year students (freshman) can borrow a maximum annual amount of $3,500 and second year students (sophomores) can borrow a maximum annual amount of $4,500. Students can only borrow subsidized loans up to 150% of their published program length. An example of 150%, a student that is enrolled in a two year Associate degree program can only receive subsidized loans up to three years. Students must complete a Free Application for Federal Student Aid (FAFSA) and a Federal Direct Loan Application at GC financial aid office to be considered for a Direct Subsidized Loan.
Subsidized loans do not accrue interest while a student is in school. Students are always encouraged to make payments while attending school but are not required to. Students are given a six month grace period to make payment arrangements anytime they drop below half time (<6 credits), withdrawal, or graduate from school. After the six month grace period ends students are required to make payments with their loan servicer on each due date. Subsidized loans have a lifetime borrow limit of $23,000.
Direct Unsubsidized Loans
Direct Unsubsidized Subsidized loans are a non-need based loan program for students that are enrolled at least half time (>6 credits). There is a limit to the amount of loans a student can be awarded each year and semester. Dependent students can borrow a maximum annual amount of $2,000 and independent students can borrow a maximum annual amount of $6,000. Students must complete a Free Application for Federal Student Aid (FAFSA) and a Federal Direct Loan Application at GC financial aid office to be considered for a Direct Unsubsidized Loans.
Unsubsidized loans start accruing interest right away and then the interest capitalizes. Students are always encouraged to make payments while attending school but are not required to. If the student pays at least the interest that is accruing while in school the interest may not capitalize. Students are given a six month grace period to make payment arrangements anytime they drop below half time (<6 credits), withdrawal, or graduate from school. After the six month grace period ends students are required to make payments with their loan servicer on each due date. Unsubsidized loans have a lifetime borrow limit of $34,500 or $57,500.
** Entrance & Exit counseling must be completed each year and will satisfy the requirement for both the subsidized & unsubsidized loan awards. You may have to sign an additional Master Promissory Note**
You Need to Know
Loans will come in two disbursements each semester. If you are awarded a fall/spring loan you will have a total of four disbursements.
Entrance Counseling must be completed every year at least 2 weeks prior to the published first disbursement date. You can complete this process on-line through the Direct Loan website.
Exit Counseling is required and must be completed in person when available or online through the Direct Loan website for the following situations:
- Within 30 days after graduation
- Within 30 days of completely withdrawing during any semester; or
- Within 30 days of dropping below half time enrollment (6hrs) within any semester
For questions or issues concerning your Direct Loan
Direct Loan Customer Service number: 800/848-0979
You’re not alone when it comes to student loans. Grayson College has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you during your grace period to answer questions you have about your loan obligation and/or repayment options. They may also contact you if your loan(s) become delinquent. Inceptia is not a collection agency. We’ve partnered with them to help you explore a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you find answers to your questions and solutions to your issues. For additional resources including information on repayment options, please visit Inceptia’s Federal Student Loan Overview website at Inceptia.org/FAQ.
Who is eligible?
A loan recipient must be enrolled at least half-time and be making satisfactory academic progress.
NOTE - if you are in default on a student loan or owe a repayment to another school you will not be eligible for loans or any other federal aid until it has been repaid or the Department of Education can provide a letter stating you are eligible for Title IV federal aid.
Grayson College reserves the right to review, reduce or cancel awards at any time because of changes in aid availability and/or changes in the student's eligibility. Students receiving financial aid are responsible for notifying the financial aid office of any additional aid received such as an additional scholarship and/or additional funding.
*Please note, if you are receiving veteran's education benefits please be aware that your loan(s) may be reduced or canceled. For more information please talk with your VA representative or contact the Office of Financial Aid.*
Loan Awards & Disbursements
- Federal regulations require multiple disbursements on Direct Stafford and Parent PLUS loans. All loans will be disbursed in two disbursements each semester for a total of four disbursements if the loan is a fall & spring loan.
- The particular dates of disbursement will be determined each academic year and posted to our website each academic year.
- Students will receive a Disbursement Notification Letter from Grayson College within 14 days after funds have been electronically received by the college.
- Students and/or parents have the right to cancel all or a portion of the loan and have proceeds returned to the lender. Students that wish to cancel all or a portion of their loan must provide a written statement to the Office of Financial Aid no later than 14 days after the date listed on your disbursement letter. The statement should include the student's name, social security number and the amount of the loan they wish to cancel. The student may also send this information via email to email@example.com.
When are loans paid back?
Repayment for Direct Loans begins six (6) months after the student graduates, ceases at least half-time enrollment (enrolled in 5 credit hours or less) or completely withdraws. Note, only one grace period is given per loan - once it has been used you do not receive another.
Do I have to borrow the maximum amount?
No: It is important for you to determine the exact amount of money that you need to borrow. You should only borrow as much as you need. Remember, you will have to pay these loans back beginning six (6) months after you graduate, cease at least half-time enrollment or completely withdraw.
What is the difference between subsidized and unsubsidized loans?
The Federal Subsidized loan is need based and the government pays the interest during in-school status, grace periods and authorized deferment periods. The Federal Unsubsidized loan is not need based and the borrower is responsible for paying the interest that accrues during these loan periods.
What is a Federal Parent PLUS Loan?
The Federal Parent PLUS Loan is a credit based fixed interest loan created by the federal government to help creditworthy parents pay for their dependent student's education beyond high school. The amount a parent can borrow for a student cannot exceed the student's total cost of attendance. Repayment begins 60 days after the loan is fully disbursed. Interested students must complete their financial aid file, choose a lender and complete the Parent PLUS portion of the loan application.
- National Student Loan Data System (NSLDS): Click here to view your loan information.
- Student Aid website
- Teacher Loan Forgiveness
- View estimated repayment calculators at the following: www.youcandealwithit.com
- Helpful links for money management (Inceptia)