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Federal Direct Loans

There are two types of Federal Direct Loans: Subsidized and Unsubsidized.

To be eligible for a loan you must:

• Be a United States citizen or national, permanent resident, or an eligible non-citizen.
• Be enrolled at least half time (6 credits) in an eligible program
• Be making Satisfactory Academic Progress
• Not be in default on a Stafford, PLUS, SLS, Consolidation, or Federal Direct Loans
• Not owe a Title IV refund
• Not have been convicted of any offense under state or federal law involving the sale or possession of a controlled substance

Subsidized Federal direct Loan

A Subsidized loan is awarded based on the student's financial need as computed by the Student Financial Service office and the Federal Processor. The U.S. Department of Education pays the interest on the loan while the student is enrolled for at least 6 credits and during the 6 month grace period once the student ceases enrollment.

If a student is not enrolled for a period of six months or longer, the student will go into repayment. Interest on these loans will not begin to accrue until you are in repayment.

Unsubsidized Federal Direct Loan

An Unsubsidized loan is not awarded on the basis of need. If a student is not eligible for a full Subsidized Stafford Student Loan, the student may be awarded BOTH a Subsidized and an Unsubsidized loan.

The U.S. Department of Education DOES NOT pay the interest while the student is in school. Payments can be made while the student is in school. Interest starts to accrue when it is disbursed to the school.

Annual Loan Limits

The figures listed below are maximum yearly (Fall, Spring and Summer semesters) amounts a student may borrow. The amount you are awarded may be less than the Annual Limit based on other aid received. For current interest and fee rates can be located at: studentaid.gov

Dependent Student (per FAFSA guidelines)

Grade Level	Subsidized/Unsubsidized Loan	Cumulative Credits
Freshman	$3,500 + $2,000	0-30
Sophomore	$4,500 + $2,000	31-60
*Junior/Senior	$5,500 + $2,000	61-120

Independent Student (per FAFSA guidelines)

Grade Level	Subsidized/Unsubsidized Loan	Cumulative Credits
Freshman	$3,500 + $6,000	0-30
Sophomore	$4,500 + $6,000	31-60
*Junior/Senior	$5,500 + $7,000	61-120

_{*NMC Bachelor's Degree Only}