SNHU participates in the Federal Direct Loan Program. Direct loans are fixed-rate student loans for undergraduate and graduate students attending college at least half-time. Federal Direct Loans are the most common type of financial aid to assist with paying for school.
Direct Loans are available to eligible students who file a valid FAFSA. Please review your SNHU Financial Aid award letter for the amounts you qualify for. For more information on terms and interest rates, please visit the Federal Student Aid website.
Subsidized Direct Loans are awarded based on financial need. With a Direct Subsidized Loan, the government pays the interest on the loan while the student is in school and during the six-month grace period. First-time borrowers taking out federal Direct Subsidized Loans on or after July 1, 2013 are subject to the 150% Direct Subsidized Loan Limit, which limits the amount of time a student is eligible to borrow subsidized loans to 150% of their published program length.
Unsubsidized Direct Loans are loans with interest that is not paid by the government. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may defer paying the interest while they are in school by capitalizing the interest, which increases the overall payoff amount of the loan.
First-time Direct Loan borrowers must complete the following requirements before a loan disbursement will be applied to his/her student account:
As a Federal Direct Loan borrower, you have the right to:
As a Federal Direct Loan borrower, you are responsibility for:
Annual borrowing amounts are defined by an academic year and based on cumulative credits earned toward a specific degree program.
Direct Loan limits are defined by the government and dictate how much direct loans a student may borrow.
You should always borrow what you need to assist with the cost of education and not just the amount that is awarded. After you receive your award letter, if you find that you do not need all of the loans you qualify for to cover the current years tuition and expenses, then make sure to reduce or cancel loan amount(s) not needed. This will reduce your overall student debt when you enter repayment. To revise a loan award, please follow the procedure outlined in your award letter notification.
Students are required to sign a Master Promissory Note (MPN) and complete online Entrance Loan Counseling (ELC) before receiving a Direct loan.
If you are a first-time Direct Loan Subsidized and/or Unsubsidized borrower:
Step 1: Complete Entrance Counseling session
Step 2: Complete a Master Promissory Note (MPN)
*If you do not remember your FSA ID, you can access it online at fsaid.ed.gov
After you graduate, drop to a less than half time status, or are no longer enrolled, you are required to complete exit counseling. Exit counseling prepares a borrower for repayment by reviewing borrowing history, identifying loan servicers, forecasting monthly payment schedules, identifying repayment plans, and provides strategies for successful repayment. You can complete this counseling requirement online by:
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's online database for federal student loan borrowers. NSLDS receives data from schools, loan guarantee agencies, the Direct Loan program and other Department of Education programs. This online resource allows you to be an educated borrower by providing loan types, loan amounts, loan servicers, and disbursement dates. These details are the first steps in determining the repayment plans that is right for you to successfully manage your debt.
Repayment for Federal Direct Loans begins six months after you graduate, withdraw, stop attending, or your enrollment status is less than half-time. The standard repayment term is ten years and the interest rate may vary depending on the type of Direct Loan and the disbursement date.
Please review this sample repayment schedule to provide insight into loan repayment under the standard repayment plan. This chart is for estimating purposes only.
Visit the Federal Student Aid Site to learn more about the following repayment plans and deferment/forbearance options depending on the type of Federal student loan borrowed:
A loan servicer is a company that handles the billing and other services on your federal student loan. Your loan is assigned to a loan servicer by the U.S. Department of Education. The loan servicer will provide regular updates on the status of your Direct Loan, work with you on repayment plans, loan consolidation, and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help. For more information about loan servicers, visit the Federal Student Aid Site.