Southwestern College participates in the William D. Ford Federal Direct Loan Program, formerly the Federal Family Education Loan (FFEL) Program. The Direct Loan Program offers the same types of loans as the FFEL Program. Direct Loans have the same terms and conditions as FFEL Program, but instead of a bank lending the money, the U.S. Department of Education (the Department) lends the money directly to students through the student’s school.
- Direct loans are simple. You borrow directly from the federal government and have a single contact for everything related to the repayment of your loans.
- You will have online access to your account information 24 hours a day, 7 days a week at www.dl.ed.gov.
- You can choose from several repayment plans that are designed to meet your needs.
Types of Loans:
Federal Direct Subsidized Loan: provides low interest rates and are available to students who demonstrate financial need determine by the information provided on the FAFSA. The Federal government pays the accruing interest on the loan while attending school at least half time or during deferment status. Please note: Direct Subsidized loans will not be eligible for an interest subsidy during the six-month grace period after the student is no longer enrolled at least half time, or if the loan is in a deferment status. This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. If a student received a subsidized loan during this timeframe, they will be responsible for the interest that accrues while their loan is in the grace period. They do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of their loan when the grace period ends. This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.
Federal Direct Unsubsidized Loan: provides low interest rates and are available to all students regardless of financial need. Interest begins to accrue from the date the loan is disbursed, though you can choose to pay it later if you are in an in-school, grace, or deferment status. If the student does not pay the accruing interest, it will be added to the principal amount of their loan and increase the amount they have to repay. If the student pays the interest as it accumulates, they will repay less in the long run.
For more information on the Direct Loan program, please click on the navigation bars to the left
or on the links below:
Applying for a Loan
Information on how to submit a loan application, important dates, the confirmation process, direct loan packaging and direct loan requirements.
Awarding and Disbursement of Loans
Information on loan award letters, disbursement procedures, the right to cancel or reduce your direct loan and post withdrawal disbursements.
Cancel or Reduce your Loan
Link to the form you will need to submit if you wish to cancel and reduce the amount of your direct loan
Entrance and Exit Counseling
Information on required entrance and exit counseling and links to pdfs of Department of Education guides
Experimental Sites Initiative
Information on Southwestern College’s participation in the Department of Education’s Experimental Sites Initiative.
Loan Default and Default Prevention
Information on the impact of defaulting on your direct loan and tools to help prevent that from occurring
Loan Limits, Interest Rates & Fees
150% Lifetime Eligibility
Information on what happens when you go into repayment status on your direct loan, grace period and the Master Promissory Note (MPN).
Information on new regulations form the Department of Education limiting new borrowers length of direct loan eligibility to 150% of their declared program length.
If you have any questions on Direct Loans or the SWC Student Loan Program, please contact our Student Loan Specialist, Katherine Abara, at firstname.lastname@example.org. She is available to meet with students during specialist walk-in hours on Tuesdays from 1:30pm-3pm and Wednesdays from 10am-11:30am or by appointment.