Federal Direct Student Loan
With the Federal Direct Loan Program you borrow loan funds directly from the Federal Government, and like any loan, must be repaid. After your loan is disbursed, your loan will be assigned to a Department of Education Federal Loan Servicer. Keep all communication that you receive as you will need to remember and know which servicer has your loan(s). Subsidized Direct Loans for undergraduate borrowers currently has a fixed interest rate of 3.4%. Unsubsidized Direct Loans for all borrowers have a fixed interest rate of 6.8%. (Check with your loan servicer for the interest rate in effect for your previous borrowing for Direct Student Loans.) While you are in school, the Federal Government pays interest on the Subsidized Direct Loan for you; however, you are responsible to pay the interest on the Unsubsidized Direct Loan. Effective with loans first disbursed on or after July 1, 2012, Subsidized Direct Loans are no longer available to graduate borrowers.
Students who borrowed a Direct or Stafford loans while attending and graduating from the School of Mines during the 2011-2012 academic year, had an average indebtedness for these types of loans of approximately $24,626. Using the current maximum interest rate on a Direct Loan of 6.8%, this would result in an approximate monthly payment of $284. Students are under no obligation to accept a student loan and should do so only after considering the long-term implications of borrowing more than what is really needed to attend college.
Your award notification on WebAdvisor shows the eligible loan program and the maximum amount you are eligible to receive based on your grade level, Estimated Cost of Attendance, Expected Family Contribution and other financial aid you are receiving. You are under no obligation to accept a student loan and should do so only after considering the long-term implications of borrowing more than you really need to attend college.
Repayment will be according to the provisions of your Direct Loan Master Promissory Note. You are expected to contact your Direct Loan servicer when you graduate or cease to be enrolled on at least a half time basis.
First-time Direct Loan borrowers must complete a Master Promissory Note (MPN) and Loan Entrance Counseling.