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William Ford Direct Student Loans

General Requirements for Loans

• Students must have filed the Free Application for Federal Student Aid (FAFSA) or contact the IU Northwest Office of Student Financial Aid Services to complete a paper FAFSA.
  • IU Northwest’s school code is 001815.
• Students must be U.S. citizens or eligible non-citizens.
• Students must be admitted to a degree or certain certificate programs.
• Half-time enrollment required
  • Undergraduate students must be enrolled at least half time (at least 6 credit hours for fall or spring semester, and 6 credit hours for summer I or summer II, or a combined total of 6 credit hours for both summer I and II) to qualify for a Federal Stafford loan.
  • Graduate students must be enrolled at least 4 credit hours for fall or spring semester, and 4 credit hours for summer I or summer II, or a combined total of 4 credit hours for both summer I and summer II.
• Students must maintain satisfactory academic progress to continue to be eligible for their loan(s). Review the Satisfactory Academic Progress Policy.
• Students may be required to repay all or some of their student loan(s) immediately if they withdraw from or stop attending all of their classes.

William Ford Direct Student Loans

There are two types of Direct loans: subsidized and unsubsidized.

• Direct Subsidized Loan - If students meet certain financial need criteria based upon FASFA information, the federal government will pay the interest on their loan while they attend school at least half time or during times when they qualify for an authorized deferment.
• Direct Unsubsidized - If students do not meet the financial need criteria to qualify for a subsidized loan, they still can apply for an unsubsidized loan. Students are responsible for paying the interest while they are in school.

Federal Direct Loan Limits

Undergraduate Federal Direct loan limits are determined by student class standing and dependency status. The following chart represents the maximum available per academic year. However, the individual student’s loans may be less, depending on the cost of the student’s program, estimated family contribution, and other financial aid awarded.

Annual Loan Limits

Interest rates

The interest rates for Federal Direct Student Loans are:

Lifetime Loan Limits

• Dependent undergraduates — $23,000
• Independent undergraduates — $46,000 (no more than $23,000 may be in subsidized loans)
• Graduate students — $138,500 (no more than $65,000 may be in subsidized loans)

William Ford Direct Loan Master Promissory Note

First time Stafford borrowers at IU Northwest must complete entrance counseling (link to DL entrance counseling) and sign a Master Promissory Note (MPN) on-line. The MPN must be signed only one time as long as the student stays with the same lender and attends the same school. Contact the Financial Aid Office if assistance is needed in completing the MPN.

• IU Northwest applies the loan funds to the student's bursar account. Remember that you must be enrolled at least half time at the time of disbursement in order to receive your loan. Loans cannot be released more than 10 days prior to the beginning of the academic term.
• The Bursar Office mails any remaining funds to the current address you have filed with the Registrar Office. If you would like the remaining funds directly deposited into your checking account, then visit the Bursar web site to determine methods of payment.

Any of the following conditions could delay the processing of your loan request:

• Not being admitted to a degree-seeking program.
• Not having a FAFSA on file for the appropriate year.
• Not meeting Satisfactory Academic Progress.
• Having loan debt that exceeds yearly or cumulative federal maximum limits.
• Not completing the verification process if you were asked to submit additional information.
• Not responding to requests for additional information/documentation by the Office of Financial Aid.