William D. Ford Federal Direct Loan Program
The William D. Ford Federal Direct Loan Program (DL) provides Federal Stafford Loans to help cover the costs of educational expenses. Federal Stafford Loans have a fixed interest rate of 6.8% and repayment of principal is not required until six months after you cease enrollment on at least a half-time basis. You may qualify to borrow up to a maximum of $20,500 each year. You must file the Free Application for Federal Student Aid (FAFSA) to be considered for these loans. The loans you receive will be either subsidized or unsubsidized.
A subsidized loan is awarded on the basis of financial need. You won't be charged any interest before you begin repayment or during deferment periods. The federal government pays the interest during these periods. You may qualify to borrow up to a maximum of $8,500 subsidized loan each year.
IMPORTANT PROGRAM UPDATE
Congress has passed legislation that makes graduate students ineligible to receive Federal Direct Subsidized Stafford Loans for loan periods beginning on or after July 1, 2012. Graduate students may still qualify to borrow an annual maximum amount of $20,500. However, all funds must be borrowed from the Direct Unsubsidized Stafford Loan Program.
An unsubsidized loan is not awarded on the basis of financial need although you must still file the FAFSA to be considered for unsubsidized loans. You'll be charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue while you're in school or during other periods of nonpayment, it will be capitalized. This means the interest will be added to the principal amount of your loan, and additional interest will be based on the higher amount.
The following links provide detailed information concerning all aspects of the William D. Ford Federal Direct Loan Program:
Direct Loan Overview
While You Are In School
When You Graduate or Leave School
Know What You Owe
Deferments and Forbearances
Loan Consolidation and Cancellation
Sign a Direct Loan Promissory Note
Complete Direct Loan Entrance Counseling
Complete Direct Loan Exit Counseling
Federal Loan Servicers
The CTS Federal Direct Stafford Loan Process
- A Stafford Loan is listed on the Financial Aid Award Notification which you receive from the Financial Aid Office.
- You return the Loan Information Form to the Financial Aid Office.
- The Financial Aid Office originates your loan and transmits that information to the Department of Education.
- You complete the on-line Master Promissory Note (MPN) and submit to the Department of Education via the web. Be sure to print a copy of the MPN for your file.
- The Department of Education sends your loan funds to the Christian Theological Seminary Business Office.
- The Financial Aid Office checks your enrollment status to confirm that you are still enrolled on at least a half-time basis.
- The Business Office credits the loan funds to your account.
- The Business Office mails any remaining funds to you.