Federal Direct Student loans are funds borrowed from the federal government for educational costs. They must be repaid starting six (6) months from the date in which the student completes a degree, ceases to be enrolled, or drops below half-time status. The loan is made to the student, and the student is directly responsible for the repayment of this debt. Eligibility is contingent upon completion of a FAFSA and submission of all required supporting documentation.
Manhattanville College requires that all U.S citizens, nationals, or lawful permanent residents complete the Free Application for Federal Student Aid (FAFSA) in order to determine eligibility for funding. The FAFSA is available online at studentaid.gov. Manhattanville College’s federal code is 002760.
Federal Direct Subsidized/Unsubsidized Loans
If a student demonstrates need – as defined by the federal government based on the information provided on the FAFSA – a portion of the Federal Direct Student Loan may be subsidized. In this case, the federal government pays the interest as it accrues, until the end of the student’s six (6) month grace period. All applicants who complete the FAFSA are automatically eligible for an unsubsidized Federal Direct Student Loan, on which interest accrues while the student is in school. Federal loan limits are determined by the year in school.
Repayment of the subsidized and unsubsidized loans can be made over 10 or more years. The federal government charges an origination fee for each student loan. These fees are deducted from each semester’s check to the school. The fixed interest rate, set each year on July 1st, is based on the 91-day Treasury bill, plus a 3.1% allowance, not to exceed 8.25%
Federal Direct Parent PLUS Loan
The Federal Parent Loan for Undergraduate Students (PLUS) is a program whereby credit-worthy parents may borrow up to their child’s cost of attendance, minus any financial aid already awarded. The Bipartisan Student Loan Certainty Act of 2013 sets the annual fixed interest rate on Direct PLUS Loans at the rate on high-yield 10-year Treasury notes plus 4.6%, but caps that rate at 10.5%.
To apply for a PLUS Loan, eligible parents and caregivers must-visit studentaid.gov and complete the application, as well as the PLUS MPN for Parents of a Dependent Undergraduate Student.
If an applicant is denied, they may appeal the credit decision or seek out an endorser. Otherwise, the student is then entitled to additional unsubsidized loan funds up to the independent limit determined by their year in school.
After considering all the resources available through the Office of Financial Aid, some families need further assistance and choose a private loan product. We strongly encourage students to discuss their financial situation with a financial aid professional prior to taking out any private education loan. We also recommend comparing the rates and payment