Federal Direct Student Loans

Federal Direct Student Loans

Since Fall 2014, Louisiana Delta Community College (LDCC) participates in the William D. Ford Federal Direct Loan Program. Student borrowers obtain loan funds directly from the federal government (U.S. Department of education). The official website is www.studentloans.gov. This site is your source for information from the U.S. Dept. of Education on how to apply and manage your student loans. When you complete the Free Application for Federal student Aid (FAFSA), you are applying for all federal aid programs for which you may be eligible, including direct student loans.

If a Federal Direct Student Loan (subsidized and/or unsubsidized) has been offered to you as part of your aid package it will appear on your Student Aid Report (SAR). You can accept or decline these loans just as you would any other aid program assistance offered to you.

Federal Direct Student Loans are available for student meeting certain qualifications. If you are considered a student must be enrolled in a degree seeking program at least six credit hours, are not in default on a federal loan or owe a repayment on a federal grant, and you must meet all other eligibility requirements; such as Satisfactory Academic Progress (SAP), you may qualify for a Federal Direct Student Loan.

Loans, unlike grants or work study, are borrowed money that must be repaid. Some direct loans must be repaid with interest. These are real loans - just like car loans and mortgages. You cannot have these loans canceled just because you didn't like the education you received or because you're having financial difficulty. These loans are a serious obligation, so think about the amount you'll have to repay over the years before you take out a loan. The Direct Loan Program is available to assist student and their parents with the costs associated with attending college by offering low-cost education loans.

Information contained on this page includes:

  • Types of Federal Direct Student Loans and Direct Parent Plus Loans
  • Loan Limits and Interest Rates
  • How to Apply for a Federal Direct Student Loan
  • How to apply for a Direct Parent Plus Loan
  • Entrance and Exit Counseling Sessions
  • Federal Direct Loan Master Promissory Note (MPN)
  • Federal Direct Parent Plus Loan Master Promissory Note (MPN) and Credit Check
  • Loan Disbursements
  • Repaying Direct Loan Debt

 

Types of Federal Direct Student Loans

Subsidized Direct Loan is based on "financial need" as determined by the FAFSA. The government pays the interest for you as long as you remain enrolled at least six credit hours in a degree seeking program and meet all other eligibility requirements. The amount you can borrow during each academic year is based on your grade level.

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you may receive these loans. Generally, a first-time borrower is one who did not have an outstanding balance or principle or interest on a Direct Loan on July 1, 2013. If this limit applies to you, you may not receive Subsidized Direct Loans for more that 150 percent of the published length of your program. This is called your "maximum eligibility period." You can find the published length of your program of study in our college academic catalog on-line at www.ladelta.edu. For example, is you are enrolled in a two-year academic program, the maximum eligibility period for which you can receive a Subsidized Direct Loan is three years (150 percent of two years = 3 years).

Because your maximum eligibility period is based on the length of your current program of study your maximum eligibility period can change, if you change to a program that has a different length. Also, if you receive Subsidized Direct Loans for one program and then change to another program the loans you received for the earlier program will generally count towards your new maximum eligibility period.

Unsubsidized Direct Loan is available to students regardless of demonstrated need (determined by your FAFSA). For independent students, this loan may supplement the funds obtained through subsidized loans. You are responsible for all interest payments, including the time that a student is in deferment. It is advisable, if possible, the student should make the interest payments while in school. The student does, however, have the options of capitalizing the interest. This means that the unpaid interest will be added to the principal amount of the loan at regular intervals, and the student will ultimately owe more money.

 

Federal Direct Loan Counseling

Direct Loan Entrance Counseling - If you have not previously received a loan, you must complete the entrance counseling session before the college can make the first disbursement of your loan. This applies to all borrowers, except Parent Plus borrowers. The session will help you understand your responsibilities regarding your loan.

Direct Loan Exit Counseling - Any student who borrowers a Direct Student Loan at LDCC is required by law to complete an exit counseling session before you grduate or withdraw or drop below six credit hours.

 

Federal Direct Student Loan Master Promissory Note (MPN)

MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). In most cases, once you have submitted the MPN and it's been accepted you will not have to fill out a new MPN for future loans. You can borrow additional loans on a single MPN for up to ten years. It is very important that you completely read and understand all of the information on the MPN before you sign it. It takes approximately 30 minutes to complete.

  • You are not required to accept the full amount that LDCC may award to you.
  • You may notify the Office of Financial Aid if you want to borrow a lower amount.
  • You can decline the entire loan amount.

To complete the entrance and/or exit counseling session and the MPN go to www.studentloans.gov/mydirection and sign in. You will be required to use your Department of Education-issued FSA ID. If you do not have a FSA ID, you may request one from the official pin webiste at www.pin.ed.gov.

 

Federal Direct Parent Plus Loan Master Promissiry Note (MPN and Credit Check

To request a Direct Parent PLUS Loan the parent must complete a PLUS