William D. Ford Federal Direct Loan Program
The financial aid process begins by completing the FAFSA form found at www.fafsa.ed.gov The FAFSA application determines the types of financial aid you are eligible to receive. Use the WMCL FAFSA school code, G02391, and we will receive your application results. We will send you a Financial Aid Eligibility Letter along with instructions for processing Direct Loans.
Federal Direct Loan Questions and Answers
What are the current 2011-2012 school year Direct Loan fees and interest rates?
The fee for subsidized and unsubsidized loans is 1% discounted to .5%. The interest rate is 6.8%.
The fee for the Grad PLUS Loan program is 4% discounted to 2.5%. and the interest rate is 7.9%
Are interest rates and origination fees for student loans changing?
Yes. Starting in the 2012-2013 school year, the subsidized loan will no longer be subsidized, and the fee for the now entirely unsubsidized loan will be the full 1%. A $20,500 loan (the program annual maximum) will accrue interest at 6.8%, and the fee to receive the full $20,500 loan will be $204. The 1% fee is deducted at the time of disbursement.
Grad-PLUS Loan interest rate remains at a fixed 7.9%. The fee will be the full 4%. The loan fee for a $33,960 loan will cost $1,358
How do I complete processing for a Federal Direct Loan?
Visit the website www.studentloans.gov. Use your four digit Federal Student Aid PIN to sign in and you will be offered the option of completing the loan program entrance counseling session, Master Promissory notes for the subsidized and unsubsidized loans and Direct PLUS Loan Requests.
Is my credit reviewed for loan eligibility?
Only the Grad PLUS loan requires credit approval. Your debt to income ratio, credit score or employment status are not taken in to account when your application for credit is being reviewed. A lack of of credit is not considered detrimental. The specific conditions for a Grad PLUS loan credit denial can be reviewed in the Frequently Asked Question (FAQ) section of the studentloans.gov website.
What are my options if my Grad PLUS loan application is denied?
You can either obtain an endorser/co-signer for the loan or you may choose to appeal the reason you were declined. To start the appeal process, contact Direct Loan Applicant Services at 1-800-557-7394.
A co-signer must have his/her own Federal Student Aid PIN and sign an Endorser Addendum available on the studentloans.gov website. You will be required to resign the promissory note after the endorser completes the addendum process.
How do I apply for additional Grad PLUS loan funds?
Contact the financial aid office to make this request. The total amounts of a Graduate PLUS loan(s) may not exceed the cost of attendance minus all other financial aid. Please note that your credit history may be reviewed again to determine your eligibility.
I borrowed federal loans through a private lender and have been notified that the U.S.Dept. of Education has purchased these loans. Are they part of the Direct Loan Program now?
No. Even though both your old and new loans may now be owned by the U. S. Dept of Education, the original funding source was different which requires the loans to remain separate. They will not be combined for one monthly payment, even if held by the same servicer. Consolidate these loans in the Direct Loan Program to take advantage of the Public Service Loan Repayment option.
If I borrowed loans through the FFELP program and the Direct Loan Program, or the U.S. Dept of Education purchased some of my loans, how will I know who is servicing my loans?
The National Student Loan Data System (NSLDS) will be your resource for tracking and locating all of your federal student loans. The website is www.nslds.ed.gov. You should refer to this website often and throughout the existence of each loan, from disbursement to payment in full. Private loans are not included on this website.
Loan Servicing Centers for Students Direct Loan Servicing Center (ACS)
Phone: 800/848-0979
Fax: 800/848-0984
TDD/TTY: 800/848-0983
Overseas: 315/738-6634
Web site: www.dl.ed.gov
Department of Education Student Loan Servicing Center (ACS)
Phone: 800/508-1378
Fax: 315/738-2232
TDD/TTY: 800/662-1220 within New York State
TDD/TTY: 800/855-2880 outside New York State
Web site: www.ed-servicing.com
FedLoan Servicing (PHEAA)
Phone: 800/699-2908
Fax: 717/720-1628 TDD/TTY: 800/722-8189
Overseas borrowers: 717-720-1985
Web site: www.myfedloan.orgGreat Lakes Educational Loan Services, Inc.
Phone: 800/236-4300
TDD/TTY: 800/236-4300
Overseas: 608/246-1700
Web site: www.mygreatlakes.org
Nelnet
Phone: 888/486-4722
Fax: 877/402-5816 TDD/TTY: 888/486-4722
Overseas: 303/696-3625
Web site: www.nelnet.com
Sallie Mae
Phone: 800/722-1300
Fax: 866/266-0178 (within United States)
Fax: 570/706-8563 (outside United States)
TDD/TTY: 877/713-3833
Overseas: If toll free (no cost per call) number cannot be accessed, use 317/806-0580 (cost per call)
Web site: www.salliemae.com
Can I combine my federal loans if I have multiple lenders?
Yes, you can consolidate all of your federal loans through the Federal Direct Loan Consolidation Program. Please be sure to use the data provided in NSLDS (referenced above) to ensure all federal loans are included. Visit the consolidation website at www.loanconsolidation.ed.gov to apply or to obtain answers to questions you may have.
Additional information about the Direct Student Loan Program may be found at: www.direct.ed.gov/student.html