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Home » Financial Aid » Student Loan Information
 

STUDENT LOAN PROCEDURES FOR FEDERAL DIRECT LOANS

Before You Get the Loan, Get the Facts

An education loan is a legally binding contract that must be repaid with interest even if you do not graduate or are unable to find a job. You are not obligated to accept loan funds if you don't need them, but don't be afraid to borrow if you really need the money.

Normally, funds are released in two installments to coincide with the academic terms. Loan funds will be issued directly to the school and distributed according to established procedures. Up to a 3 percent origination fee may be deducted from your loan proceeds prior to disbursement. Funds can only be used for education related expenses.

Please allow several weeks for your loan to be approved and processed. To avoid unnecessary delays, be sure your application is accurate and complete. If you require more information or assistance, feel free to call or stop by the Financial Aid Office at any campus.

Features and Benefits of Federal Direct Loans

Subsidized and unsubsidized Federal Direct Loans allow you to borrow up to the maximum Direct Loan amount available for your grade level. The federal government pays interest on subsidized Direct Loans while you are actively enrolled in school and for a six-month grace period afterward. If you aren't fully eligible for need-based, subsidized Direct Loan funding, you may get an unsubsidized Direct Loan for any remaining Direct Loan eligibility. However, on the unsubsidized portion, you will be responsible for all interest that accrues from the date of disbursement.

Please Note: To be eligible for Federal Direct loans, borrowers must be U.S. citizens or permanent legal residents enrolled in school at least half-time. In addition, male students must satisfy requirements under the Selective Service Act. If you are in default on a prior loan or owe a refund on grant money, you will not be able to borrow further. Loan awards cannot exceed the cost of education as determined by the school.

The Loan Process

To Receive Your Subsidized or Unsubsidized Loan You Need to Complete the Following Steps:

  1. Accept your loan award on the Edison State portal. You may also cancel or reduce the amount of your loan.
  2. Complete Entrance Counseling at www.studentloans.gov.
  3. Complete a Master Promissory Note (MPN) at www.studentloans.gov.

The loan will be processed by the Financial Aid Office once you have completed these steps. You will be notified of the loan disbursement dates. Any refund to your Edison Higher One Card will be available 5-7 days after the scheduled disbursement date. An email will be sent to your Edison email address once the funds are available on your card.


Federal PLUS (Parent) Loan Application

Note: Beginning May 1, 2010, applications for 2010-11 Parent PLUS Loans will be available through the Department of Education's Website at https://studentloans.gov/myDirectLoan/index.action

Parent PLUS Loans are loans for parents of dependent undergraduate students that allow them to borrow up to the student's cost of attendance, minus other financial aid. Interest is charged during in-school deferment and grace periods. The borrower is responsible for the interest from the time the PLUS Loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.

To Apply for a Parent PLUS Loan:

  1. Complete a FAFSA (Free Application for Federal Student Aid).
  2. For 2010-11, complete an online Parent PLUS Application.

How Much Can I Borrow?
The maximum amount you can borrow each academic year is calculated by subtracting other financial aid from the student's cost of attendance.

To be Eligible You Must:

  1. be a parent of or eligible step-parent of a dependent undergraduate student;
  2. the student must be enrolled at least half-time;
  3. the borrower and student must not have defaulted or owe a refund to any previous aid program;
  4. the student must maintain satisfactory academic progress;
  5. the parent borrower and student must be U.S. citizens, nationals, or permanent residents; and
  6. the parent borrower must have no adverse credit history.

To Receive Your Parent PLUS Loan:

  1. Complete a Master Promissory Note (MPN) for Parent PLUS Loans at https://studentloans.gov/myDirectLoan/index.action
The loan will be processed by the Financial Aid Office once you have completed the steps and your application record is sent to the office. You will be notified of the loan disbursement dates. Any refund will be available 5-7 days after the scheduled disbursement date.

Exit Loan Counseling

http://www.nslds.ed.gov/nslds_SA/SaEcWelcome.do Exit Loan

Student borrowers who have graduated, withdrawn or dropped to less than 6 credits for a semester are required to complete a loan exit interview within 30 days after they leave the college or drop to less than half time enrollment.
The Exit Counseling link (above) will guide you through the required process. 
 

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