Direct Loans can be need-based (subsidized) or non-need based (unsubsidized). The federal government will pay the interest on a subsidized loan while the borrower is enrolled in school at least half-time. For unsubsidized loans, interest begins to accumulate at the point of disbursement. Repayment for both types does not begin until six months after graduating, withdrawing from school or dropping below half-time.
NOTE: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012 and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
- Step 1: Log in to studentloans.gov using FAFSA log-in
- Step 2: Complete Direct Loan entrance counseling
- Step 3: Complete a Master Promissory Note
- Loan repayment and calculation
- New eligibility information for Direct Subsidized Loans - July 1, 2013
The PLUS Loan program enables parents of undergraduate students and graduate students with a good credit history to borrow funds. Parents and graduate students may borrow up to the cost of tuition, books and fees less any other financial aid received by the student.
Private Educational Loans
While we encourage students to pursue federal student loans prior to applying for private educational loans, these loans may be helpful and beneficial to some borrowers. Visit the Private Educational Loans page for more information.
Loan Entrance Counseling and Master Promissory Note
The federal government requires you to complete loan counseling to ensure that you understand the responsibilities and obligations you are assuming. Entrance counseling will walk you through the Direct Loan process and explain your rights and responsibilities as a borrower. You are also required you to complete a Master Promissory Note. The Master Promissory Note is a legal document in which you agree to pay your loan(s) back along with any interest that accumulates. The document will also include the terms and conditions of your loan. Please note that Federal student loans cannot be disbursed to a students’ account until both of these documents are completed.
Loan Exit Counseling
The federal government requires that any and all federal loan borrowers complete the Direct Loan Exit Counseling and the time of departure from the University. Fresno Pacific if required to ensure that any and every Direct Loan borrower (Subsidized, Unsubsidized, and Grad PLUS) who falls below half-time completes the exit counseling. The exit counseling is required if the student stays enrolled at less than half-time, graduates or withdraws from the institution. Parents who have borrowed a Direct Parent PLUS Loan are not required to complete the exit counseling. Please note that if you plan to graduate you will be required to complete the exit counseling before being allowed to participate in Commencement. If you need to complete a loan exit counseling, please visit studentloans.gov (If this was a link straight to the website that would be very helpful) and sign in with your FSA ID.
Educational loans are an investment in your future, but it is important to understand your financial obligation. Please take time to read through the following information:
The U.S. Department of Education has authorized Fresno Pacific University to administer federal loan programs under Title IV funding.