Federal Direct Student Loan
At Palm Beach State College, we want our students to be highly educated and informed. If you are considering the possibility of borrowing a Federal Direct Student loan to help pay for your education, please ensure that you understand your rights and responsibilities.
Borrow only what you need.
You must repay loans, including principal and interest.
Applying for a Federal Direct Student Loan
Borrowers must complete all steps before Loans will show in PantherWeb.
- Free Application for Federal Student Aid (FAFSA)
- Master Promissory Note (MPN)
- Complete Entrance Loan Counseling
- PBSC Loan Request Form or PBSC PLUS Loan Request form
Eligibility Requirements
Department of Education's basic eligibility requirements :
- Demonstrate financial need (for most programs);
- Enrolled and attending at least half-time (6+ compliant hours) for each term for which the loan is intended.
- Maintain satisfactory academic progress in college or career school;
- Complete the Free Application for Federal Student Aid (FAFSA®) annually
- NOT in default on a federal student loan,
- Does NOT owe money on a federal student grant
- Federal student aid should only be used for educational purposes
Disbursement of Federal Direct Loans
- Student Loans are disbursed after the term begins AND enrollment is verified.
- First time borrowers will receive the first disbursement 30 days after the first day of class.
- Federal Direct Student Loan eligibility may change if you receive additional aid (such as scholarships), if you have a change in enrollment (withdraw/drop below half-time status, and/or change in academic program of study).
If your eligibility for a Federal Direct Student Loans changes, we may be required to:
- Cancel your loan
- Reduce current and/or future disbursements for your loan
- Return Funds already disbursed
- We recommend you set up a direct deposit to receive any excess financial aid funding.
Federal Student Loan Videos
What is a Federal Direct Student Loan?
Types of Federal Student Loans
Types of Federal Direct Student Loan Program
| Federal Loan Program Type | Program Details |
|---|---|
| Direct Subsidized Loans |
For undergraduate students with financial need
|
| Direct Unsubsidized Loans |
For undergraduate, graduate, and professional degree students; financial need isn’t required
o 4.53% for loans made to undergraduate students, and o 6.08% for loans made to graduate and professional degree students
|
| Direct PLUS Loans |
For parents who are borrowing money to pay for their dependent undergraduate child’s education, and for graduate or professional degree students; * financial need isn’t required
|
*Learn about dependency status at StudentAid.gov/dependency.
**Learn about PLUS loans and adverse credit at StudentAid.gov/plus.
Source: https://studentaid.gov/sites/default/files/federal-loan-programs.pdf
Annual Loan Limits
| Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| First-Year Undergraduate Annual Loan Limit | $5,500—No more than $3,500 of this amount may be in subsidized loans. | $9,500—No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit | $6,500—No more than $4,500 of this amount may be in subsidized loans. | $10,500—No more than $4,500 of this amount may be in subsidized loans. |
| Third Year and Beyond Undergraduate Annual Loan Limit | $7,500—No more than $5,500 of this amount may be in subsidized loans. | $12,500—No more than $5,500 of this amount may be in subsidized loans. |
| Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000—No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. |
Notes:
- The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect July 1, 2010, no further loans are being made under the FFEL Program.
- Effective for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study.
- Find interest rates on loans disbursed before July 1, 2019, at StudentAid.gov/interest.
Source: Federal Student Aid https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
Additional Federal Direct Student Loan Resources
Please utilize the additional resources to obtain the information you need in order to keep your loans in satisfactory repayment status.
- Federal Student Aid
- NSLDS - National Student Loan Data System
- U.S. Department of Education
- Financial Aid Literacy
COVID-19
Visit studentaid.gov for more information on Coronavirus and Forbearance Info for Students, Borrowers, and Parents.
