Student Loans

William D. Ford Direct Federal Loans

The William D. Ford Federal Direct Loan Program provides loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution.

-	Direct Subsidized Loans are for students with demonstrated financial need, as determined by the FAFSA. No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods. The interest rate for loans disbursed on or after July 1, 2011 is fixed at 3.4%. Beginning with loans disbursed on or after July 1, 2012 the interest rate will be fixed at 6.8 % and students will accrue interest during the grace period and while enrolled if less than half-time.
-	Direct Unsubsidized Loans are not based on financial need; interest is charged during all periods. The interest rate for loans disbursed on or after July 1, 2011 is fixed at 6.8%.
-	Students or parents seeking to receive a direct loan must have a valid master promissory note on record
-	New students apply on-line at www.StudentLoans.gov and you will use your PIN number from the FAFSA to sign the master promissory note electronically. New students must also complete an "Entrance Counseling" session to receive a Direct Loan. The entrance counseling may be found at www.StudentLoans.gov after you sign into the site. Students or parents with an active master promissory note (MPN) are not required to complete a new MPN.
-	Direct Plus Loans are low-interest loans for parents of dependent students. Interest is charged during all periods, beginning on the date of your loan's first disbursement. Parents cannot have an adverse credit history; a credit check will be performed. Parents may apply on-line at www.StudentLoans.gov. Parents will also use their PIN number from the FAFSA to sign the master promissory electronically. The interest rate for Plus loans is 7.9%.

Fees associated with Direct Loans that are first disbursed on or after July 1, 2010 are:

-	Subsidized and Unsubsidized Loans: 1.0 % origination fee with an up-front interest rebate of .5%.
-	Plus Loans: 4.0% origination fee with an up-front interest rebate of 1.5%.

Academic year loan limits as determined by Federal guidelines are:

-	Freshman: $5,500 - No more than $3,500 of this may be Subsidized Loans
-	Sophomore: $6,500 - No more than $4,500 of this may be Subsidized Loans
-	Junior: $7,500 - No more than $5,500 of this may be Subsidized Loans
-	Senior: $7,500 - No more than $5,500 of this may be Subsidized Loans

If you are an independent undergraduate (as defined by federal regulations) or a dependent student whose parents are unable to secure a PLUS loan, you may borrow additional unsubsidized Direct Loan funds to the limits listed above. The academic year additional loan limits are:

1st Year Undergraduates	2nd Year Undergraduates	3rd Year Undergraduates	4th Year Undergraduates
$4,000	$4,000	$5,000	$5,000

Code of Conduct for Education Loans
To learn about the code of conduct to which Cabarrus College adheres, click here.