What You Need to Know Before You Get a Loan
- Pursue all other alternatives first.
- Get the facts about each loan program.
- Know the players in the student loan process and their language.
- Estimate the anticipated level of debt for your entire program of study.
- Budget before you borrow.
- Know manageable levels of debt. Never borrow more than absolutely necessary.
- Know the effects of having multiple loans.
- Take the time now to make the right decision. You can save time, money, and frustration.
William D. Ford Federal Direct Loan Program
Students and parents who previously received loans through the Federal Family Education Loan (FFEL) Program will now borrow through the Direct Loan Program. The Direct Loan Program (DLP) offers the same types of loans as the FFEL Program and generally this program will have the same terms and conditions as FFEL Program. The difference is instead of a bank lending the money; the U.S. Department of Education (DOE) lends the money directly to students and parents through the student’s school. The FFEL Loans were either Stafford Subsidized or Stafford Unsubsidized loans. However, in the Direct Loan Program these loans are called Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS Loans.
Benefits of the Direct Loan Program
Direct Loans and FFEL Program loans have the same annual and aggregate loan limits, the same deferment and cancellation provisions, and most of the same repayment plans (Standard, Graduated, and Extended, Income-Based). The interest rates for FFEL Program Stafford Loans and Direct Subsidized and Unsubsidized Loans are also the same. Direct Loans also have some benefits that are available only in the Direct Loan Program:
- Lower interest rate on Direct PLUS Loans
- Up-Front Interest Rebate
- Income Contingent Repayment Plan (in addition to the Income-Based Repayment Plan)
- Public Service Loan Forgiveness Program
- No interest charged (for up to 60 months) during qualifying periods of active duty military service (for loans first disbursed on or after October 1, 2008)
Types of Student Loans
- Federal Direct Subsidized/Unsubsidized Loans
- Federal Direct Parent Loan for Undergraduate Students (PLUS) Loan
- Private Educational Student Loan
- Direct Loan Service Center
- Direct Loan Master Promissory Note (MPN)
- Direct Loan Entrance and Exit Counseling
- Direct Loan Deferment Forms
- Direct Loan Consolidation Home
- Loan Repayment Information
- Loan Repayment and Budget Calculators
- Repaying your Student Loans and Help with Defaulted Student Loans
- Interest Rates and Fees
- Locate your Loans on the National Student Loan Data System (NSLDS)
Are you enrolled at least half-time and have received Notice of Loan Repayment?
Students who have Federal Direct or FFEL Loans and are enrolled at least half-time here at SFSC are eligible for an In-School Deferment. During a deferment, students do not need to make payments. Please contact the financial aid office at 863-784-7134 immediately to resolve your repayment status.
It is the student’s responsibility to notify the financial aid office or their loan servicer if they believe they are eligible for an In-School Deferment.