Apply for a Federal Direct Loan
Welcome to the William D. Ford Federal Direct Loan Application Process
UIS participates in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education.
Federal Student Loan Program Changes for 2012-2013
Loss of Subsidized Loan Eligibility for Graduate/Professional Students
The Budget Control Act of 2011 was signed into law on August 2, 2011. Effective July 1, 2012, graduate and professional students will no longer receive the Federal Direct Subsidized Loan. As a result, graduate and professional students will only be awarded the Federal Direct Unsubsidized Loan. The annual limit, however, does not change.
Termination of Direct Loan Borrower Repayment Incentives
The Budget Control Act of 2011 was signed into law on August 2, 2011. Effective, July 1, 2012, the up-front rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered. As a result, the 0.5% origination fee for the Direct Stafford Loans will be 1.0% and the 2.5 origination fee for the Direct PLUS Loans will be 4.0%.
Increase in interest rate for the Federal Direct Subsidized Loan
A provision in a law (The College Cost Reduction and Access Act of 2007) that has kept rates down for the subsidized loans is set to expire on June 30, 2012. After that, rates will jump to 6.8% -- double the current rate -- for the 2012-2013 academic year.
Federal Direct Subsidized Stafford Loan
A Federal Direct Subsidized Loan is awarded to meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program. For undergraduate students, Federal Direct Subsidized Loans disbursed between July 1, 2011 and June 30, 2012 (2011-2012 academic year) will have a fixed interest rate of 3.4%.
A provision in a law (The College Cost Reduction and Access Act of 2007) that has kept rates down for the subsidized loans is set to expire on June 30, 2012. After that, rates will jump to 6.8% -- double the current rate -- for the 2012-2013 academic year.
For graduate students, Federal Direct Subsidized loans will no longer will be available beginning with the 2012-2013 academic year.
Apply for a Federal Direct Subsidized Loan
To apply for a Federal Direct Subsidized Loan, you must complete the FAFSA. To be eligible, you must be enrolled for at least six hours per semester. If you are eligible for a Federal Direct Subsidized Loan, it will be included on your Financial Aid Award Letter.
Accept/Reduce/Decline a Federal Direct Subsidized Loan
You can accept or decline a Federal Direct Subsidized Loan on your electronic Award Letter by selecting “Accept” or “Decline” in the dropdown box on the Award Letter Accept/Decline Awards page. You can reduce your loan by selecting “Accept” in the dropdown box and entering a lower award amount in the “Partial Accept” field. If you wish to request loan changes, you should use the “Request Changes” on the Award Letter Information Request page of your electronic Award Letter.
A Master Promissory Note (MPN) and Entrance Counseling are required for Federal Direct Loans before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN and complete one entrance counseling session during your college career.
Federal Direct Unsubsidized Stafford Loans
A Federal Direct Unsubsidized Loan is not based on your financial need. It is available to you through the William D. Ford Federal Direct Loan Program, if your Estimated Cost of Attendance (COA) is greater than your financial aid and you have not reached your annual maximum loan limit through the Federal Direct Subsidized Loan. The interest rate for Federal Direct Unsubsidized loans disbursed on or after July 1, 2006 is fixed at 6.8%. You are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid.
Apply for a Federal Direct Unsubsidized Loan
To apply for a Federal Direct Unsubsidized Loan, you must complete the FAFSA. To be eligible, you must be enrolled for at least six hours per semester. If you are eligible for a Federal Direct Unsubsidized Loan, it will be included on your Financial Aid Award Letter.
Accept/Reduce/Decline a Federal Direct Unsubsidized Loan
You can accept or decline a Federal Direct Unsubsidized Loan on your electronic Award Letter by selecting “Accept” or “Decline” in the dropdown box on the Award Letter Accept/Decline Awards page. You can reduce your loan by selecting “Accept” in the dropdown box and entering a lower award amount in the “Partial Accept” field. If you wish to request loan changes, you should use the “Request Changes” on the Award Letter Information Request page of your electronic Award Letter.
A Master Promissory Note (MPN) and Entrance Counseling are required for Federal Direct Loans before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN and complete one entrance counseling session during your college career.
Federal Direct Parent PLUS Loans
Parent Loans for Undergraduate Students (Federal Direct Parent PLUS) are federal loans that parents with good credit histories may borrow to help pay the educational expenses of an undergraduate student enrolled in at least 6 credit hours per semester.
A parent may borrow up to the total of the Estimated Cost of Attendance less resources and all other financial aid received by the student. The interest rate is a fixed interest rate of 7.9% and is charged on the loan from the time the loan funds are disbursed until it is paid in full.
Apply - Complete a Federal Direct Parent PLUS Loan Request Form
If a Federal Direct Parent PLUS loan is the only financial aid you desire, you must still complete the FAFSA. Then, complete the Federal Direct Parent PLUS Loan Request Form and return it to OFA by the deadline dates listed on the form. If the parent borrower does not have an active Master Promissory Note (MPN) on file, he/she must complete one online.
Parent Eligibility
Parents must submit to a credit check by the United States Department of Education to be eligible for a Federal Direct Parent PLUS Loan. You authorize the credit check when you sign the Federal Direct Parent PLUS Loan Request Form.
Federal Direct Parent PLUS Loan Processing / Receipt of Funds
The Direct Loan Processor will notify the parent borrower and the UIS Office of Financial Assistance of the result of the credit check. The borrower cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years. If credit is approved, loan funds will be disbursed. The funds will be applied to tuition, fees, and other university charges.
Refunds
If the Federal Direct Parent PLUS disbursement generates a refund after University charges are paid, the refunded amount will go to the parent.
Federal Direct Grad PLUS Loans
Grad PLUS Loans are federal loans that graduate and professional students with good credit history may borrow to help pay educational expenses if you are enrolled in at least 6 credit hours per semester.
A student may borrow up to the total of the Estimated Cost of Attendance less resources and other financial aid. The interest rate is a fixed interest rate of 7.9% and is charged on the loan from the time the loan funds are disbursed until it is paid in full.
Apply for a Grad PLUS Loan
To apply for a Grad PLUS loan you must complete the FAFSA. Additionally you will be required to sign a Grad PLUS Master Promissory Note (MPN) and complete Entrance Counseling. The Entrance Counseling requirement for a Grad PLUS Loan is different from that of a Direct Stafford Loan (subsidized/unsubsidized) but may be completed at the same time by completing the Combination - Stafford and PLUS loan option. In addition, to be eligible for a Grad PLUS Loan, you must be enrolled at least 5 hours during the fall and spring semesters; at least 3 hours during the summer semester.
Eligibility
To be eligible for a Grad PLUS Loan, you must submit to a credit check by the U.S. Department of Education. You authorize the credit check when you agree to the Award Letter Financial Aid Terms and Conditions.
Grad PLUS Loan Processing / Receipt of Funds
The Direct Loan Processor will notify you and UIS Office of Financial Assistance of the result of the credit check. You cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the last five years. If credit is approved, loan funds will be disbursed. The funds will be applied to tuition, fees, and other university charges.
Refunds
If a Grad PLUS disbursement generates a refund, the refunded amount will be deposited into your bank account. Authorizing direct deposit of refunds gives you the quickest access to your funds.
How do I contact the Direct Loan Program?
- Direct Loan Program: 1-800-848-0979
- PIN Website: A Federal PIN is required in order to eSign your Direct Loan MPN.
- Master Promissory Note: A Federal Direct Loan MPN is required of all new and current borrowers effective summer 2009.
- Entrance Counseling: Federal Direct Loan Entrance Counseling is required for all new and returning borrowers.
- Direct Loan Account Information: Online account and billing information.
- Loan Consolidation: Consolidate your FFELP loans with your Direct Loans when you graduate if desired.
