The William D. Ford Federal Direct Loan (Direct Loan) Program allows students to borrow money to help pay their educational costs while they are in school. As long as the student is attending at least six credit hours and does not cease to attend for a period greater than six months, the student does not have to begin repaying the principle balance or the interest. Although, they may make payments if they so choose. In order to be eligible for this program students must:
- be registered and attending at least six credit hours in the term(s) for which they wish to borrow;
- complete all steps necessary to determine eligibility for student grants, including-but not limited to-completing the FAFSA and, if selected for verification, the verification process;
- complete the Edison State Direct Loan Application Process;
- meet the requirements of the Edison State Satisfactory Academic Progress Policy; and
- not be in default on any student loans or have received an overpayment of any educational grants or loans.
Subsidized Student Loans
The interest on subsidized loans is paid by the federal government as long as the student is attending at least six credit hours and attends for a period greater than six months. Once repayment begins, interest will begin to accrue that the student will have to pay back. Eligibility for these loans is based, in part, on financial need.
Unsubsidized Student Loans
Unsubsidized student loans accrue interest beginning on the day the loan is disbursed. However, the student does not have to begin repaying this interest and/or the principle balance until he or she drops below six credit hours or ceases to attend for a period greater than six months. Additionally, eligibility for these loans is not based on financial need. Even those students whose EFC is too high for them to receive grants may be eligible for unsubsidized loans.
IMPORTANT To take out a Direct Loan, you must complete a Master Promissory Note (MPN), as well as Entrance Counseling (if it is your first student loan) and Exit Counseling upon departing. You can complete these steps online by clicking below.
Federal Direct Loans