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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.

COVID-19 Student Loan Information

 Automatic Temporary 0% Interest and Administrative Forbearance as a Result of the COVID-19 National Emergency

To provide relief to student loan borrowers during the COVID-19 national emergency, interest is being temporarily set at 0% on federal student loans. In addition, federal student loan borrowers are automatically being placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payments. This 0% interest and suspension of payments will last from March 13, 2020, through Sept. 30, 2020, but you can still make payments if you choose.

Have questions? Find out what loans qualify, and get additional information about the 0% interest period, administrative forbearance, and other student loan flexibilities due to the COVID-19 national emergency.

 

 

Applying for a Federal Direct Student Loan

   Borrowers must complete all steps before Loans will show in PantherWeb.

  1. Free Application for Federal Student Aid (FAFSA)
  2. Master Promissory Note (MPN)
  3. Complete Entrance Loan Counseling
  4. 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:

  1.  Cancel your loan
  2.  Reduce current and/or future disbursements for your loan
  3.  Return Funds already disbursed
  • We recommend you set up a direct deposit to receive any excess financial aid funding.

Federal Student Loan Videos

Types of Federal Student Aid

Responsible Borrowing

 

How to Manage Your Student Loans

Student Loan Repayment Options

  

 

Types of Federal Direct Student Loan Program 

The following chart shows the different types of Federal Direct Loan Program:
Federal Loan Program Type Program Details
Direct Subsidized Loans

For undergraduate students with financial need

  • For loans first disbursed on or after July 1, 2020, and before July 1, 2021, the interest rate is 2.75%
  • You’re not usually charged interest on the loan during certain periods, such as when you’re in school at leasthalf-time
The U.S. Department of Education (ED) is the lender; payment is owed to ED
Direct Unsubsidized Loans

For undergraduate, graduate, and professional degree students; financial need isn’t required

  • For loans first disbursed on or after July 1, 2020, and before July 1, 2021, the interest rate is

                o   2.75% for loans made to undergraduate students, and

                o   4.30% for loans made to graduate and professional degree students

  • You’re responsible for paying the interest during all periods
The U.S. Department of Education (ED) is the lender; payment is owed to ED
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

  • For loans first disbursed on or after July 1, 2020, and before July 1, 2021, the interest rate is 5.30%
  • You must not have an adverse credit history (unless you meet certain additional eligibility requirements) **
The U.S. Department of Education (ED) is the lender; payment is owed to ED


*Learn about dependency status at StudentAid.gov/dependency.

**Learn about PLUS loans and adverse credit at StudentAid.gov/plus.

 Source: https://studentaid.gov/understand-aid/types/loans/interest-rates

Annual Loan Limits

The following chart shows the annual and aggregate limits for subsidized and unsubsidized 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)
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.

 

Aggregate Loan Limits

Caption goes here
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, 2020, 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.

Loan Articles:

U.S. Department of Education’s Office of Federal Student Aid Announces New Contracts with Five Companies to Improve Customer Service, Increase Accountability (Published June 24, 2020)

US Department of Education restructures federal student loan servicing, Nelnet and Great Lakes will no longer process federal loans. (Published June 29, 2020)

 

COVID-19

Visit studentaid.gov for more information on Coronavirus and Forbearance Info for Students, Borrowers, and Parents.

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