What is a Direct Student Loan? It basically just means that it is guaranteed by the federal government. Anyone who is filing a Free Application for Federal Student Aid (FAFSA) will be eligible to receive one of these loans! These loans have fixed interest rates and are usually pretty well liked for our undergraduate and grad students. The Repayment of these loans will be deferred as long as the student is enrolled half-time. Once you finish your time with Hardin Simmons, you will have a 6 month grace period before you have to start paying on the loan. Unless you are graduating in December, all of these loans will be given to the student in two equal amounts, one for the fall and the other for the spring.
Students with financial needs, which is determined by your FAFSA, might qualify for a Subsidized Direct Loan. While you are in school, interest is paid by the federal government on these loans! Unsubsidized Direct Loans are available to all students regardless of financial need, but interest accrues during enrollment for students without financial needs. Accrued interest may be paid quarterly, or capitalized when repayment begins.
To receive Direct loan funds, every student needs to complete Entrance Counseling and a Master Promissory Note with the Department of Education. You only have to do this once, and then the years following, FAFSA will be awarded Direct Loans automatically and that’s it! Because of this, if you wish to cancel a loan, you have to let the Financial Aid Office know ahead of time.
Direct loan awards are subject to annual and aggregate limits. Additional information is available in the Financial Aid Guide.
Click to complete Direct Loans Entrance Counseling or Direct Loan Promissory Note