Students who complete a FAFSA and are enrolled at least half-time in a degree program may be eligible for a need-based subsidized student Loan. If you qualify for a subsidized student loan, the government will pay the interest on your loan while you are in school.
If you do not qualify for a subsidized student loan, but still complete your FAFSA and are enrolled at least half-time, you may borrow an unsubsidized student loan. Interest on this loan will accrue throughout the life of your loan, but you are not required to make interest payments while you are in school.
The Federal Government set loan limits for undergraduate students based on how many college credit hours you have completed.
Direct Student Loans subsidized and unsubsidized that are disbursed on or after July 1, 2017 and before July 1, 2020, will have an interest rate of 4.45%.
The origination fee (loan Fee) will be 1.066% for subsidized and unsubsidized Direct Loans first disbursed on or after October 1, 2017 and before October 1, 2020.
You do not have to make payments on your Direct Student Loan while you are in school. Repayment begins six months after you cease to be enrolled at least half-time, stop attending or graduate.
If you have never borrowed a Federal Direct Student Loan before, then you must complete a Direct Loan Master Promissory Note (MPN). You also must complete Direct Loan Entrance counseling. Both of these items can be done online using your FSA ID. These documents only need to be completed one time (rather than annually, like the FAFSA). They will be good for all the Direct Loans that you borrow while attending St. Augustine College.
The Master Promissory Note (MPN) and the Entrance Counseling, must be received by the Financial Aid Office before your loan can be processed.
Learn more about The Direct Student Loan, limits, interest, origination fees and repayments at: https://studentaid.ed.gov/sa/types/loans