Federal Direct Student Loans

There are two different loans offered to students who complete a FAFSA application. Below you will find information regarding the two different federal direct loans offered and additional quick facts pertaining to both. Please keep in mind that not all students will qualify for both loan types. The type of a student is offered will be based on financial need and the yearly amount the student can receive will be based on their grade level, enrollment, and aggregate loan limits. Please refer to sections titled: Dependent / Independent Student Yearly Loan Limits, and Aggregate Lifetime Loan Limits.

Subsidized Loan:

• Awarded based on financial need
• Interest-free while enrolled in at least 6 credits per semester
• 4.99% fixed interest rate for loans disbursed between July 1, 2022 - June 30, 2023.
  • Note: interest rates are subject to change July 1 each year for new loans borrowed.
• Only available to Undergraduate Students with financial need

Unsubsidized Loan:

• Non-need-based
• Accrues interest while in school
  • Undergraduate Students:
    • 4.99% fixed interest rate for loans disbursed July 1, 2022 - June 30, 2023 
  • Graduate Students:
    • 6.54% fixed interest rate for loans disbursed July 1, 2022 - June 30, 2023
• Note: interest rates are subject to change July 1 each year for new loans borrowed.

Additional Quick Facts:

• Both loan types charge an Origination Fee
• 1.057% for loans disbursed from October 1, 2021 - September 30, 2022. Origination fees are subject to change October 1 each year.
• Repayment is deferred while the student is enrolled and taking at least 6 credits per semester and six month grace period after you have graduated or dropped below six credits.
  • If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
  • Students can choose to pay interest on the Unsubsidized Loan while in school
    • If you choose not to pay the interest while you are in school and during grace periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
  • Repayment begins 6 months after graduation or from the date the student ceases to be enrolled in at least 6 credits

 

Federal Direct Student Loan Fact Sheet

1.  Complete the FAFSA for the applicable academic year that you plan to attend.

2.  Comply with any requests from the Office of Financial Aid for additional documentation. If you are a confirmed MU student, any outstanding requirements you may have will be listed under the Financial Aid Requirements widget found in the Finances tab of your myVILLE Portal. 

3.  Once all requirements are completed, a financial aid award package will be completed for you and will be available to view in your MAX account under the My Awards tab. All eligible students will be "Offered" a Federal Direct Loan.  

• The student will need to log into their MAX account to accept (or decline/reduce) the offered loan. For instructions on navigating your MAX Account, please click here.
• Once the loan(s) have been accepted (or declined), if you wish to make any further changes you must complete a Loan Request Change Form or contact the Office of Financial Aid at 717-871-5100. Please note that only the student may make changes to their Federal Direct Loans.

First-time borrowers must also complete Federal Direct Loan Entrance Counseling and a Master Promissory Note (MPN) online through studentaid.gov. These requirements must be completed by the student, NOT the parent(s).  

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ENTRANCE COUNSELING:

The Federal Government requires that all first-time Federal Direct Loan borrowers complete an entrance counseling session before they receive any loan proceeds. Entrance Counseling educates the student about Direct Loans and their terms, as well as the student’s rights and responsibilities of borrowing them. The Entrance Counseling must be completed by the student, NOT the parent(s). For more information on how to complete Entrance Counseling, please click here.

LOAN AGREEMENT:

The Federal Direct Student Loan is a guaranteed student loan (in the student's name).  In order to obtain the Federal Direct Loan, all first-time borrowers must complete the Federal Direct Loan Agreement (Master Promissory Note/MPN).  This note is valid for a period of 10 years and must be completed by the student. For more information on how to complete Entrance Counseling, please click here.

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To log into your account, you will need your (the student):

FSA User ID and Password:

NOTE: This is the same user ID and password used to complete the FAFSA application

• To create an FSA User ID click here.
• If you have forgotten your username or password, click here.

It is Federal Regulation that these steps must be done so that the student understands the terms of their loan and repayment. Until both the Entrance Counseling and Loan Agreement are completed, Direct Loan funds will not be credited towards the student's bill and will not disburse (pay) to the account.

The amount a student can borrow in federal loans each academic year is based on their grade level at the time the loan is processed. A student's grade level is based on the total number of credits earned. Please note that the number of credits a student is enrolled, their housing plans and other financial aid received may cause the loan amounts listed below to be less.

The following chart refers to yearly limits for dependent undergraduate or dependent post-baccalaureate certification students. Students may be eligible for an additional unsubsidized loan if the parent is denied a Parent PLUS Loan.

Students may cancel all or a portion of the loan within 14 days after the date the school has sent notification that the loan funds have been credited to the student's account. Contact the Office of Financial Aid (717-871-5100) to cancel or reduce the loan.

• The loan MUST BE REPAID to the U.S. Department of Education (USDE) through one of the Direct Loan Servicers. 
• The student is the borrower and has up to 10 years to repay the loan depending on the size of the student's debt.
• During the repayment period, under certain circumstances, the lender may grant deferments, forbearances, or cancellations. A list of deferments and cancellations is provided at the time the student signs their Promissory Note.
• The school can refuse to certify a student's loan application OR certify the loan for an amount less than the student would otherwise be eligible. The school must document the reason for its action and explain the reason to the student in writing. The decision of the school is final and cannot be appealed to the U.S. Department of Education.
• A student can receive a subsidized and unsubsidized loan for the same period.
• Loan funds are disbursed in at least 2 installments (fall/spring).

The amount a student can borrow in federal loans each academic year is based on their grade level at the time the loan is processed. A student's grade level is based on the total number of credits earned. Please note that the number of credits a student is enrolled, their housing plans and other financial aid received may cause the loan amounts listed below to be less.

The following chart refers to yearly limits for independent undergraduate, independent post-baccalaureate certification students, graduate/doctoral students (and sometimes dependent students - only if their parents have applied for and been denied a Parent PLUS Loan; the student now qualifies to borrow an additional amount of the unsubsidized loan). 

The federal Aggregate Lifetime Loan Limit puts a cap on the total amount of subsidized and/or unsubsidized loans that you may borrow for undergraduate and graduate study. If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you're not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

Students cannot exceed the Aggregate Lifetime Loan Limits for the program for which they are enrolled. As students get close to their aggregate loan amounts, the school is notified by the National Student Loan Data System (NSLDS) and is required to complete a Loan Limit Review (LLR) of all loans borrowed. Loan Limit Reviews can take 1-4 weeks for processing depending on the time of year and when your FAFSA was received. Please allow for processing time; if additional information is needed from you, the information will be requested on your myVILLE Student Portal > Finances > Financial Aid Requirements > Financial Aid Status > Select Aid Year.

NOTE:  SULA IS NO LONGER APPLICABLE AS OF 2021.

SULA is an acronym that stands for 'Subsidized Usage Limit Applies'. This is in reference to the Department of Education's 150% rule for Subsidized loans that went into effect for new borrowers beginning July 1, 2013. There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans.

In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period". You can usually find the published length of any program of study in your school's catalog.

For example:

• If you are enrolled in a 4-year bachelor's degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years).

• If you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years).

  • Note: Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.

Are you confused about how to keep track of your federal loans?  

Due to changes in federal regulations, your loans may have been sold and sent to different lenders/servicers.  As a borrower, you may have several different federal loans serviced by different companies. 

In order to keep track of your federal loans, you can use the information from the National Student Loan Data System (NSLDS) and studentaid.gov to view detailed information about your loans and current servicers.  Please note that this is only for federal loans (Stafford, Direct, Perkins, Grad PLUS) and does not include any private/alternative loans.

manage my student loans

In accordance with U.S. Department of Education regulations (HEOA 489 amended HEA Sec.485B), Millersville University and the Office of Financial Aid acknowledges to students and parents that when the student enters into an agreement regarding a Title IV (HEA) loan, i.e.: Direct Stafford Loan and Direct Parent PLUS Loan that the loan will be submitted to NSLDS (National Student Loan Data System) and accessible by authorized agencies, lenders, and institutions.