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Federal Direct Subsidized Loan

What is it?

The Federal Direct Subsidized Loan is a long-term loan with a fixed interest rate available to eligible undergraduate students based on information you provide on the Free Application for Federal Student Aid (FAFSA).  The Department of Education is the lender.  This loan does not accrue interest as long as you are enrolled at least half time; while students are enrolled the Department of Education pays the interest.  There is an origination fee assessed.  Federal student loan interest rates are tied to the ten year Treasury note; this means that loan rates may vary from year to year.  Once the loan has been disbursed, the loan rate will be fixed for the life of the given loan.  For information regarding interest rates and origination fees click here.

First time borrowers of a Federal Direct Loan after July 1st, 2013 are subject to a new regulation that limits a first-time borrower's eligibility for the Federal Direct Subsidized Loan to not exceed 150 percent of the length of the borrower's educational program.  For more specific information regarding this regulation click here.

Who is eligible?

Federal Direct Subsidized Loans are available for undergraduate students who are enrolled at least half-time in degree seeking coursework and maintain Satisfactory Academic Progress (SAP).  Six credits are considered half-time for undergraduate students.  Non-degree seeking coursework will be considered if it is pre-requisite or preparatory coursework for a graduate program.  Non-degree coursework will also be considered if it is a requirement for elementary or secondary teacher certification or recertification in the state where the student plans to teach. If you are enrolled in non-degree seeking coursework, please contact Sandy Prudhomme at 701-231-7095 to discuss your eligibility.

Students who are in their final term of study should be aware that Federal Direct Subsidized Loans with a single semester loan period will be pro-rated based on their total number of enrolled credits for that semester.

For more specific information regarding eligibility click here.

Will I have to pay it back?

Yes.  Repayment of both principal and interest will begin six months after graduation or if the student drops below half-time.  Understanding the repayment process for your federal student loans can go a long way toward building a solid financial foundation.  Remember, federal student loans are real loans, just like car loans or mortgages.  You must repay a student loan even if your financial circumstances become difficult.  Your student loan repayment cannot be canceled because you didn’t get the education or job you expected, or because you didn’t complete your education.

For more detailed information on federal student loan repayment click here.

If I am eligible, what is my next step?

You will need to accept, decline or change your Federal Direct Subsidized Loan award on Campus Connection; for instructions on how to do this click here.  If you are a new borrower of a Federal Direct Loan, you will need to sign a Master Promissory Note and complete Entrance Loan Counseling here.  You must sign the Master Promissory Note and complete the Entrance Loan Counseling before your loan will be disbursed to your student account.

For more detailed information about the Federal Direct Subsidized Loan program click here.

Federal Direct Unsubsidized Loan

What is it?

The Federal Direct Unsubsidized Loan is a long-term loan with a fixed interest rate available to eligible undergraduate and graduate students based on information you provide on the Free Application for Federal Student Aid (FAFSA).  The Department of Education is the lender.  This loan does accrue interest while you are a student and you are responsible for paying interest during all periods.  If you choose not to pay the interest while you are a student or during grace, deferment or forbearance periods, your interest will accrue and be added to the principle amount of your loan.  There is an origination fee assessed.  Federal student loan interest rates are tied to the ten year Treasury note; this means that loan rates may vary from year to year.  Once the loan has been disbursed, the loan rate will be fixed for the life of the given loan.  For information regarding interest rates and origination fee click here.

Who is eligible?

Federal Direct Unsubsidized Loans are available for undergraduate and graduate students who are enrolled at least half-time in degree seeking coursework and maintain Satisfactory Academic Progress (SAP).  Six credits are considered half-time for undergraduate student and five credits are considered half-time for graduate students.  Non-degree seeking coursework will be considered if it is pre-requisite or preparatory coursework for a graduate program.  Non-degree coursework will also be considered if it is a requirement for elementary or secondary teacher certification or recertification in the state where the student plans to teach. If you are enrolled in non-degree seeking coursework for graduate school, please contact Sandy Prudhomme at 701-231-7095 to discuss your eligibility. 

Students who are in their final term of study should be aware that Federal Direct Subsidized Loans with a single semester loan period will be pro-rated based on their total number of enrolled credits for that semester. 

Note: If a graduate student is enrolled in thesis, dissertation, or practicum/internship credits which are less than half-time they will need to have a graduate form completed by their advisor, department or program chair, and the dean of the graduate school indicating their coursework along with their research/practicum work is equivalent to at least half-time.  This form can be found by clicking here.

For more specific information regarding eligibility click here.

Will I have to pay it back?

Yes.  Repayment of both principle and interest will begin six months after graduation or if the student drops below half-time.  Understanding the repayment process for your federal student loans can go a long way toward building a solid financial foundation.  Remember, federal student loans are real loans, just like car loans or mortgages.  You must repay a student loan even if your financial circumstances become difficult.  Your student loan repayment cannot be canceled because you didn't get the education or job you expected, or because you didn't complete your education.

For more detailed information on federal student loan repayment click here.

If I am eligible, what is my next step?

You will need to accept, decline or change your Federal Direct Subsidized Loan award on Campus Connection; for instructions on how to do this click here.  If you are a new borrower of a Federal Direct Loan, you will need to sign a Master Promissory Note and complete Entrance Loan Counseling here.  You must sign the Master Promissory Note and complete the Entrance Loan Counseling before your loan will be disbursed to your student account.

For more detailed information about the Federal Direct Unsubsidized Loan program click here.

Federal Perkins Loan

What is it?

The Federal Perkins Loan is a long-term loan with a fixed interest rate of 5% available to eligible undergraduate, graduate and professional students based on information you provide on the Free Application for Federal Student Aid (FAFSA). NDSU is the lender and the borrower makes payments to the Student Loan Service Center. This loan does not accrue interest as long as you are enrolled at least half time. There is no origination fee assessed.

Who is eligible?

Federal Perkins Loans are available for undergraduate, graduate and professional students who are enrolled at least half-time in degree seeking coursework, demonstrate financial need, maintain Satisfactory Academic Progress (SAP), and meet the April 15th FAFSA application deadline.  Six credits are considered half-time for undergraduate students and five credits are considered half-time for graduate students.

For more specific information regarding eligibility click here.

Will I have to pay it back?

Yes.  Repayment of both principal and interest will begin nine months after graduation or if the student drops below half-time.  Understanding the repayment process for your federal student loans can go a long way toward building a solid financial foundation.  Remember, federal student loans are real loans, just like car loans or mortgages.  You must repay a student loan even if your financial circumstances become difficult.  Your student loan repayment cannot be canceled because you didn’t get the education or job you expected, or because you didn’t complete your education.

For more detailed information on Federal Perkins Loan repayment click here.

If I am eligible, what is my next step?

You will need to accept, decline or change your Federal Perkins Loan award on Campus Connection; for instructions on how to do this click here. If you are a new borrower of a Federal Perkins Loan, you will need to sign a Master Promissory Note and complete Entrance Loan Counseling after you are admitted to NDSU by clicking here. You must sign the Master Promissory Note and complete the Entrance Loan Counseling before your loan will be disbursed to your student account.

Federal Perkins Loan Rights and Responsibilities can be found by clicking here.

For more detailed information about the Federal Perkins Loan program click here.

Note: Due to limited funds, some eligible students may not be awarded this loan.

Nursing Student Loan

What is it?

The Nursing Student Loan is a long-term loan with a fixed interest rate of 5% available to eligible undergraduate and graduate students who have been accepted into the nursing program.  Eligibility is based on the information you provide on the Free Application for Federal Student Aid (FAFSA). NDSU is the lender and the borrower makes payments to the Student Loan Service Center. This loan does not accrue interest as long as you are enrolled at least half time. There is no origination fee assessed.

Who is eligible?

Nursing Student Loans are available for undergraduate and graduate students who have been accepted into the nursing program, are enrolled at least half-time in degree seeking coursework, demonstrate financial need, and maintain Satisfactory Academic Progress (SAP). Six credits are considered half-time for undergraduate students and five credits are considered half-time for graduate students.

If you are interested in receiving the Nursing Student Loan or for more information, please contact Andy Berntson at 701-231-6221 to discuss your eligibility.

Will I have to pay it back?

Yes.  Repayment of both principal and interest will begin nine months after graduation or if the student drops below half-time.  Understanding the repayment process for your federal student loans can go a long way toward building a solid financial foundation.  Remember, federal student loans are real loans, just like car loans or mortgages.  You must repay a student loan even if your financial circumstances become difficult.  Your student loan repayment cannot be canceled because you didn’t get the education or job you expected, or because you didn’t complete your education.

For more detailed information on federal student loan repayment click here.

If I am eligible, what is my next step?

You will need to accept, decline or change your Nursing Student Loan award on Campus Connection; for instructions on how to do this click here.

Nursing Student Loan borrowers are required to complete a Master Promissory Note and other Truth in Lending documents including Application and Approval Disclosures, Self-Certification and Entrance Loan Counseling. These are required each year a student borrows a Nursing Student Loan.  Once a borrower has accepted a Nursing Student Loan, they will receive an email from Educational Computer Systems (ECSI) with instructions on how to e-sign their Master Promissory Note and other required documents.  ECSI contracts with the Student Loan Service Center to provide services for the Nursing Student Loan borrowers in the North Dakota University System such as billing, payments and deferments.

Regulation Z (Truth in Lending) requires a three-day waiting period after the required documents are signed before the loan can be disbursed.

Nursing Student Loan Rights and Responsibilities can be found by clicking here.

Note: Due to limited funds, some eligible students may not be awarded this loan.

Federal Direct PLUS Loan

What is it?

The Federal Direct PLUS Loan is long term, fixed rate loan that parents can use to help pay educational expenses for their dependent undergraduate student.  Parents may borrow up to the cost of the student's attendance minus other financial aid.  Students must be enrolled at least half-time.  The Department of Education is the lender.  This loan does accrue interest beginning on the date of your loans first disbursement.  There is an origination fee.  For more information regarding interest rates and origination fee click here.

To apply click here.  The parent will need their Federal Student Aid PIN used to complete the Free Application for Federal Student Aid (FAFSA) in order to complete the application.  If you do not have a PIN or have forgotten it you can request one here.

Who is eligible?

Parents of dependent undergraduate students enrolled at least half-time in degree seeking coursework and maintaining Satisfactory Academic Progress (SAP).  Students must complete the Free Application for Federal Student Aid (FAFSA) and meet general eligibility requirements for federal student aid.

For more information regarding eligibility click here.

Will I have to pay it back?

Yes. Repayment of both principle and interest will begin once your loan is fully disbursed or if the student drops below half-time.  If you are a parent borrower, you may contact your loan servicer to request a deferment while you or your student is enrolled at least half-time and for an additional six months after your student ceases to be enrolled at least half-time.  If your loan is deferred, interest will accrue on the loan during the deferment.  You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends.  Your loan servicer will notify you when your first payment is due.

For more information regarding loan repayment click here.

If I am eligible, what is my next step?

If you are a new borrower of a Federal Direct PLUS Loan, you will need to complete an online application and sign a Master Promissory Note by clicking here.  You must sign the Master Promissory Note before your loan will be disbursed.  You will be required to sign in using your name, date of birth, social security number and FAFSA PIN number.

For more detailed information about the Federal Direct PLUS Loan program click here.

Federal Direct Graduate PLUS Loan

What is it?

The Federal Direct Graduate PLUS Loan is long term, fixed rate loan that graduate or professional students can use to help cover educational expenses.  Graduate or professional students may borrow up to the cost of attendance minus other financial aid. Students must be enrolled at least half-time. The Department of Education is the lender. This loan does accrue interest beginning on the date of your loans first disbursement. There is an origination fee. For more information regarding interest rates and origination fee click here.

To apply click here.  You will need your Federal Student Aid PIN used to complete the Free Application for Federal Student Aid (FAFSA) in order to complete the application.  If you do not have a PIN or have forgotten it you can request one here.

Who is eligible?

Graduate or professional students enrolled at least half-time in degree seeking coursework and maintaining Satisfactory Academic Progress (SAP). Students must complete the Free Application for Federal Student Aid (FAFSA) and meet general eligibility requirements for federal student aid.

For more information regarding eligibility click here.

Will I have to pay it back?

Yes. Repayment of both principle and interest will begin once your loan is fully disbursed or if the student drops below half-time. Students may contact the loan servicer to request a deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time. If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.

For more information regarding loan repayment click here.

If I am eligible, what is my next step?

If you are a new borrower of a Federal Direct Graduate PLUS Loan, you will need to complete an online application, sign a Master Promissory Note and complete Entrance Loan Counseling by clicking here. You must sign the Master Promissory Note and complete Entrance Loan Counseling before your loan will be disbursed.  You will be required to sign in using your name, date of birth, social security number and your FAFSA PIN number.

For more detailed information about the Federal Direct Graduate PLUS Loan program click here.

Federal Loan Consolidation

What is it?

Federal loan consolidation allows students to combine one or more of their Federal student loans into a single new loan.  The following web-sites will help with this process.

Federal Student Loan Resources

Federal Student Aid Ombudsman Group

The Federal Student Aid Ombudsman Group, provided by of the Department of Education, helps resolve disputes and solve other problems with federal student loans.

Email: fsaombudsmanoffice@ed.gov

Telephone: 1-877-557-2575 (toll free)

Fax: 202-275-0549

Mail:
U.S. Dept. of Education
FSA Ombudsman Group
830 First Street N.E., Mail Stop 5144
Washington DC 20202-5144

Additional Information:
For additional information on the FSA Ombudsman Group click here.


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North Dakota State University
Phone: +1 (701) 231-6200 / Fax: (701) 231-8297
Campus address: Memorial Union 176
Physical/delivery address: 1401 Administrative Ave., Fargo, ND 58102
Mailing address: NDSU Dept. 5290 / PO Box 6050 / Fargo, ND 58108-6050
Page manager:Bison Connection

Last Updated: Thursday, September 11, 2014 11:06:01 AM