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

On March 20, 2020, the Secretary of Education directed the office of Federal Student Aid to provide the following relief on ED-held federal student loans:

suspend loan payments
stop collections on defaulted loans
set interest rates to 0% for a period of 60 days

On March 27, 2020, Congress passed, and the president signed into law, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which provides for the above relief measures through Sept. 30, 2020.

On Aug. 8, 2020, President Trump directed the Secretary to continue to suspend loan payments, stop collections, and waive interest on ED-held student loans until Dec. 31, 2020.
Below, we have answered questions about these COVID-19 emergency relief measures and the resulting flexibilities for federal student loans.

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. Please visit FSA at https://studentaid.gov/announcements-events/coronavirus.

Applying for a Federal Direct Student Loan at Palm Beach State College

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

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

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.

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.

Federal Student Aid
NSLDS - National Student Loan Data System
U.S. Department of Education
Financial Aid Literacy

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, and Great Lakes will no longer process federal loans. (Published June 29, 2020)

Federal Direct Loan Questions? Please email federaldirectloans@palmbeachstate.edu with your SID and questions.