Federal Direct Loans

The William D. Ford Federal Direct Loan (Direct Loan) Program is a federal student loan program under which eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans, are types of Direct Loans which Angeles College is currently participating in.

Direct Subsidized and Unsubsidized Loan

Direct Subsidized Loan

This loan is available on the basis of financial need. Interest does not accrue while in-school or during does not accrue while in-school or during deferment periods. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while enrolled in school at least half-time, during the grace period of 6 months after the student ceases to attend at least half-time enrollment, and during periods of deferment. Repayment begins six months after graduation or after the last date of attendance, whichever comes first. 

Direct Unsubsidized Loan

This loan is now awarded on the basis of need. Interest accrues from the time the loan is disbursed until it is paid in full.

For more information about annual loan amounts, aggregate loan amounts, current interest rates, and etc, please visit: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized 

Direct Parent Loan for Undergraduate Students (Parent PLUS)

This is a credit-based loan program that enables parents to borrow funds to pay for educational expenses if the student is a dependent undergraduate enrolled at least half time. However, if the parent is denied, the student may qualify for an additional $4,000 in Direct Unsubsidized Loans for the academic year. 

For more information about this loan, please visit: 

https://studentaid.gov/understand-aid/types/loans/plus/parent 

Annual/Aggregate Loan Limits for Sub/Unsub Loans:

Annual loan amounts may be limited based on other financial aid received and your cost of attendance while enrolled. Your total student aid, including loans, may not exceed your Cost of Attendance, even if you have not reached the annual loan limit.

The following table outlines maximum annual and aggregate loan limits for Direct Subsidized and Unsubsidized Loans.

Year/Dependency Status Dependent Undergraduate Student (excluding dependent students whose parents can’t get PLUS*) Independent Undergraduate Student (including dependent students whose parents can’t get PLUS*)
Frist Year $5,500 – no more than $3,500 of this amount may be in subsidized loans $9,500 – no more than $3,500 of this amount may be in subsidized loans
Second Year $6,500 – no more than $4,500 of this amount may be in subsidized loans $10,500 – no more than $4,500 of this amount may be in subsidized loans
Third and Beyond (each year) $7,500 – no more than $5,500 of this amount may be in subsidized loans $12,500 – no more than $5,500 of this amount may be in subsidized loans
Maximum Total Loan Limits

(Aggregate Loan Limits)

$31,000 – no more than $23,000 of this amount may be in subsidized loans $57,000 – no more than $23,000 of this amount may be in subsidized loans

*If the parent borrower is denied a Direct Parent PLUS loan, the dependent student may be eligible for an additional Direct Unsubsidized Loan. However, if the parent borrower is later approved for the Direct PLUS loan, or another parent borrower is later approved, the dependent student will no longer be eligible for the additional Direct Unsubsidized Loan.

Direct Subsidized/Unsubsidized Loan Proration:

All undergraduate annual loan amounts are subject to prorate. The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. 

Time Limits for Direct Subsidized Loan:

Students borrowing a Direct Subsidized Loan are subject to a time limitation not to exceed 150 percent of the length of the borrower’s educational program. Upon reaching the maximum eligibility period, you can still receive Direct Unsubsidized Loans as long as you have not reached your aggregate loan limits.

Your maximum eligibility period can change if you change to a program that has a different length. Direct Subsidized Loans borrowed for a previous program will count toward your current program limit.

To complete the Direct Loan Entrance Counseling session (Subsidized/Unsubsidized):

https://studentaid.gov/entrance-counseling/ 

Log in as a “I am an Undergraduate Student”.

To apply for the Parent PLUS Direct loan:

https://studentaid.gov/plus-app/parent/landing

To complete the Master Promissory Note (MPN):

https://studentaid.gov/mpn/

Log in as an “I’m a Undergraduate Student” for MPN for Subsidized/Unsubsidized Loans.

Log in as an “I’m a Parent for Parents of Dependent Undergraduate Students” for PLUS MPN for Parents of Dependent Undergraduate Students.