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Federal Direct Loan Program

Applying for a Federal Director Loan

Federal Direct Student Loans are available for you to borrow funds to pay for your college expenses. You must repay these loans to the federal government, including principal and interest. Borrow only what you need.

At Palm Beach State College we promote learning, as we want our students to be highly educated and informed.  If you are considering the possibility of borrowing a Federal Direct Student loan, watch carefully each of the videos below, before initiating a loan application.  Remember you must first complete a Free Application for Federal Student Aid (FAFSA) to be considered for a Federal Direct Student Loan.


Helpful Videos

View the following videos which provide great information about Federal Direct Loans:

What types of Federal Direct Student Loans are available?

What is a Federal Direct Subsidized Loan?

What is the difference between a subsidized and an unsubsidized loan?

What is the interest rate on a Federal Direct Student Loan?


How much can I borrow?

First-Year Undergraduate Annual Loan Limit

Dependent Students (except students whose parents are unable to obtain PLUS Loans)

  • $5,500—No more than $3,500 of this amount may be in subsidized loans.

Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

  • $9,500—No more than $3,500 of this amount may be in subsidized loans.

Second-Year Undergraduate Annual Loan Limit

Dependent Students (except students whose parents are unable to obtain PLUS Loans)

  • $6,500—No more than $4,500 of this amount may be in subsidized loans.

Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

  • $10,500—No more than $4,500 of this amount may be in subsidized loans.

Third-Year and Beyond  Undergraduate Annual Loan Limit

Dependent Students (except students whose parents are unable to obtain PLUS Loans)

  • $7,500—No more than $5,500 of this amount may be in subsidized loans.

Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

  • $12,500—No more than $5,500 of this may be in subsidized loans.

 

What are my Federal Direct Student Loan limits?

If you know how much you need to borrow go to www.studentloans.gov to complete the following:

  • Master Promissory Loan (MPN)
  • Entrance Counseling
  • You will need your FSA ID to begin the process
  • Remember you must complete a FAFSA

After completing the MPN and the Entrance Counseling follow the directions below to apply for a Federal Direct Student Loan at Palm Beach State College.


Directions on Applying for a Subsidized Loan through PantherWeb

  1. Log into Pantherweb with your secure ID and password
  2. Click on “Financial Aid”
  3. Select “Sub Loan Request” from drop down box
  4. Select the "Financial Aid Year" using the drop down menu
  5. Click on “Continue”
  6. Follow on-screen directions and questions on next page

All students are eligible for a Federal Direct Student loan, however in the event you need additional Federal Direct Loans you may receive an unsubsidized loan which will incur interest while in school. You will need to meet with a Financial Ai d Advisor from the campus you attend to complete a financial aid literacy counseling interview and at that point, you can submit your unsubsidized loan request application.  If you need additional information about creating a budget before borrowing an unsubsidized loan, please view the following responsible borrowing video.


Federal Direct Parent Loans Are Available?

For parents who wish to borrow to help pay for their dependent student's educational expenses can apply for Federal Direct Parent PLUS loan. We encourage families to exhaust all federal and state financial aid options before taking out a Direct PLUS Loan.

Get additional information regarding the Federal Direct PLUS Loan

For a student to continue receiving a Federal Direct PLUS Loan funds he or she must:


Additional Federal Direct PLUS Information:

  • PLUS Loans are not based on financial need.
  • The borrower is the parent.
  • The borrower is subject to a credit check.
  • A first disbursement date on or after July 1, 2017 and by June 30, 2018 has a fixed interest rate for the life of the loan of 7.00%.
  • The Federal Direct PLUS is assessed a federal loan origination fee of 4.276% for PLUS Loans first disbursed on or after October 1, 2016 and before October 1, 2017. The origination fee is deducted at the time of disbursement.
  • The PLUS is not subsidized by the federal government.
  • The total amount cannot exceed the Cost of Attendance, less other financial aid received. (Student login to your PantherWeb account to view the financial aid amount awarded and subtract total from the cost of attendance to determine amount that can be borrowed as a Federal Direct PLUS loan.
  • Repayment begins in approximately 60 days after the loan is disbursed and
  • The borrower can have payments deferred while the student is enrolled at Palm Beach State College at least six (6) credit hours, and an additional six (6) months thereafter.

The parent must meet the General Eligibility Requirements and Federal Direct PLUS Loan eligibility; and for the initial loan, complete a Direct PLUS Loan Application that includes a credit check, and a Direct PLUS Loan Master Promissory Note (MPN) online at www.studentloans.gov.


Disbursement of Federal Direct Loans

  • All disbursements will occur around 30 days from the start of classes for the term.
  • You must be attending classes which must be confirmed by your professor.
  • We recommend you set up a direct deposit to receive any overage financial aid refund.
    Get information on setting up the direct deposit.


Loan Websites

Please utilize the listed websites to obtain the information you need in order to keep your loans in satisfactory repayment status.

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