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Moravian College

Federal Direct Loans

Federal Direct Loans are available to all eligible students who complete a Free Application for Federal Student Aid (FAFSA).
 

Subsidized

Eligibility for Direct Subsidized Loans is based on a student’s financial need. A subsidized loan will not accrue interest while the student is enrolled in school at least half-time and through the grace period.

Unsubsidized

All students are eligible for Unsubsidized Direct Loans, regardless of financial need. An unsubsidized loan will accrue interest beginning at disbursement. Interest may be paid or deferred until the loan goes into repayment.

**Interest rate for both the Subsidized and Unsubsidized is a fixed rate at 4.45% for 2017-2018.

How to Apply

New Students & First Time Loan Borrowers

First time borrowers at Moravian must complete Loan Entrance Counseling and the Federal Direct Stafford Loan Master Promissory Note at www.studentloans.gov. Sign in under "Manage My Direct Loan". You will need to know your FSA ID number. Once signed in, click on “Complete Entrance Counseling” and then “Complete Master Promissory Note / Loan Agreement”.

Transfer students who have borrowed through the Direct Loan program at their previous institution do not need to complete the Master Promissory Note but they must complete Entrance Counseling.

For students who are new borrowers on or after July 1, 2013, the period during which students may borrow Direct Subsidized Loans and the period during which the in-school interest subsidy may be provided, will be limited to 150% of the published length of their educational program.

Any student is able to view their loan history by logging on to www.nslds.ed.gov.

Loan Limits for Dependent Students

Class Level Base Amount 
(May be Subsidized
and/or Unsubsidized)
Additional 
Unsubsidized 
Amount
Annual 
Loan Limit
Freshman $3,500 $2,000 $5,500
Sophomore $4,500 $2,000 $6,500
Junior or Senior $5,500 $2,000 $7,500
Post-Baccalaureate 
Teacher Certification
$5,500   $5,500

No more than $23,000 may be subsidized over the course of your undergraduate education. Dependent students cannot exceed a total of $31,000 in Direct Loan borrowing. No more than $23,00 may be subsidized. 

If your parent applies for a PLUS Loan and is denied, the student is eligible for an additional $4,000 of Direct Unsubsidized Loan at the freshman and sophomore level or $5,000 of Direct Unsubsidized Loan at the junior and senior level. These additional loans do not count against the $31,000 maximum allowed to borrow.

Loan Limits for Independent Students 

Class Level Base Amount 
(May be Subsidized
and/or Unsubsidized)
Additional 
Unsubsidized 
Amount
Annual 
Loan Limit
Freshman $3,500 $6,000 $9,500
Sophomore $4,500 $6,000 $10,500
Junior or Senior $5,500 $7,000 $12,500
Post-Baccalaureate 
Teacher Certification
$5,500 $7,000 $12,500

Independent Students may borrow a maximum of $57,500 in Direct Loans for their undergraduate education with no more than $23,000 being subsidized. 

* For more information, visit studentaid.ed.gov

Terms and Conditions

  1. Federal Direct Subsidized Loans have a fixed interest rate of 4.45% for loans disbursed after July 1, 2017 and prior to June 30, 2018.
  2. Federal Direct Unsubsidized Loans have a fixed interest rate of 4.45% for loans disbursed after July 1, 2017 and prior to June 30, 2018.
  3. The standard 10-year repayment period begins 6 months after graduation or the student ceases to be enrolled at least half-time.
  4. There is a net Origination Fee of 1.066%.