Borrowing Direct Loans

 

Information on this page about Federal Direct Loans


How to Apply for Federal Direct Loans

After you submit the FAFSA and have been offered a loan, you may accept or decline the full amount of your loan eligibilty through your my.evergreen account.  If you are offered a Federal Direct Subsidized (undergraduate students only) and/or Unsubsidized Loan, and want to accept less than the full amount offered, please let us know by completing and submitting the Direct Loan Request Form to our office.

If you are accepting a Federal Direct Subsidized or Unsubsidized loan for the first time, you will need to complete Direct Loan Entrance Counseling and electronically sign a Master Promissory Note (MPN):

You may complete your Direct Loan Entrance Counseling and electronically sign your MPN with your 4 digit FAFSA pin by visiting www.studentloans.gov. If you have already taken out a Federal Direct Loan within the last 10 years, but this is your first loan with The Evergreen State College you only need to complete the Direct Loan Entrance Counseling. 

To complete an E-mpn, you will be required to use your Department of Education-issued PIN. If you do not have a PIN, you may request one from the official PIN site. A parent borrower must also request a PIN number from the PIN site to use when completing a PLUS E-mpn.

Master Promissory Note (MPN) Information

The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s).

To sign your MPN electronically, you will use your four digit FAFSA PIN. If you do not have your PIN, you may request a duplicate from the official PIN site.

In most cases, once you've signed your MPN and it's been accepted, you do not need to sign a new MPN for future loans. Unless your school does not allow more than one loan to be made under the same MPN, you can borrow additional Direct Loans on a single MPN for up to 10 years.

You will receive a disclosure statement from the Department of Education that gives you specific information about the loan you are taking out under your MPN, including the loan amount, fees, and the expected disbursement dates to your school.

Note: If you have already recieved Direct Loans at The Evergreen State College you do not need to complete Loan Entrance Counseling or sign a MPN each time.

General Information about Federal Direct Loans

  • You need to fill out the FAFSA for every academic year beginning in January to apply for Federal Direct loans.
  • You must be a regularly enrolled (degree-seeking) student attending at least half time (not a special student).
  • There are two major student loan programs:
    The Direct Subsidized Loan - is for undergraduate students with demonstrated financial need, as determined by federal regulations.  Interest is deferred on subsidized loans while you are in school at least half-time, during your grace period, and during deferment periods.
    The Direct Unsubsidized Loan - is for undergraduate and graduate students and is not based on financial need.  Interest will be charged during all periods of this loan.

    Federal Direct Subsidized Loan Changes

    The interest subsidy on Federal Direct Subsidized Loans will no longer be provided during the grace period for first disbursements made on or after July 1, 2012, and before July 1, 2014.
    -Consolidated Appropriations Act, 2012

    A new borrower on or after July 1, 2013 will not be eligible for a new Federal Direct Subsidized Loans if the period during which the borrower has received such loans exceeds 150 percent of the published length of the borrower's educational program. The law also provides that a borrower reaching 150 percent limit becomes ineligible for interest subsidy benefit on all Federal Direct Subsidized Loans first disbursed to that borrower on or after July 1, 2013.
    -Public Law 112-141

more informationMore about applying for Federal Direct Loans

Consolidation

For borrowers who want to combine different eligible Federal student loans into one loan, Direct Consolidation Loans will be available.

more informationMore information about Direct Consolidation or call 1-800-557-7392.

Information about part-time Enrollment.

You can receive loans at part-time enrollment you are in at least 6 credits as an undergraduate, and 4 credits if you are in the Master of Public Administration or Master of Environmental Studies program. Master in Teaching students have no part-time enrollment option. Students enrolled less than part-time are not eligable and the grace period starts.

Enrollment Status

The difference between a Subsidized and an Unsubsidized Loan

Subsidized and unsubsidized loans both accrue interest while the student is enrolled, but in the case of the subsidized loan the interest is paid by the federal government while you are in school and during the deferment period. Undergraduate students with sufficient financial need will be offered a subsidized loan.

If you borrow unsubsidized loan, you will be responsible for the interest on your loan. The interest may be paid during school or added to the principal (capitalized) when repayment begins. Students with limited financial need may be offered funds from both the subsidized and unsubsidized loan programs in amounts that total the student's annual eligibility.

Note: If your interest is capitalized, it will increase the amount you have to repay. If you choose to pay the interest as it accumulates, you'll repay less in the long run.

Annual and Aggregate Direct Student Loan Limits

The table below shows maximum allowable annual and aggregate amounts based on grade level and student status.

The amount you can actually borrow is determined by several factors including your budget for the cost of attending and other aid you are being offered. Based on your award offers, you may not always qualify for the maximum Stafford Loan amount. Please refer to your financial aid offers at my.evergreen.

Annual Loan Limits for Undergraduate and Graduate/Professional Students

Dependent Students
(excluding students whose parents cannot borrow PLUS)
Base Amount Subsidized and Unsubsidized Additional Unsubsidized Loan Amount
Loans first disbursed before 7/1/2008 Loans first disbursed after 7/1/2008
First-Year Undergraduate $3,500 0 $2,000
Second-Year Undergraduate $4,500 0 $2,000
Third-Year and Beyond Undergraduate $5,500 0 $2,000
Independent Students
(and students whose parents cannot borrow PLUS)
Base Amount Subsidized and Unsubsidized Additional Unsubsidized Loan Amount
Loans first disbursed before 7/1/2008 Loans first disbursed after 7/1/2008
First-Year Undergraduate $3,500 $4,000 $6,000
Second-Year Undergraduate $4,500 $4,000 $6,000
Third-Year and Beyond Undergraduate $5,500 $5,000 $7,000
Graduate and Professional Students Base Amount Subsidized and Unsubsidized Additional Unsubsidized Loan Amount
Loans first disbursed before 7/1/2011 Loans first disbursed after 7/1/2011
  $8,500 (before 7/1/2011) $12,000  $20,500

Aggregate Loan Limits

(the total amount you may borrow during your academic career)

Subsidized/Unsubsidized Aggregate Limits
Dependent Students
(excluding students whose parents cannot borrow PLUS)
$31,000
(maximum $23,000 subsidized)
Independent Students
(and students whose parents cannot borrow PLUS)
$57,500
(maximum $23,000 subsidized)
Graduate and Professional Students $138,500

Independent students are eligible to borrow more because they are paying for college without eligibility for their families to apply for the PLUS Loan.

You can get your cumulative loan history at NSLDS. You need your FAFSA pin for accessing this information. If you do not have your PIN, you may request a duplicate at www.pin.ed.gov.