How to Apply for the Federal Direct Subsidized and Unsubsidized Loans

In order to be eligible for a Federal Direct Student loan (Subsidized and Unsubsidized) while attending the MIAD you must be attending at least half-time (6 credits) in the Fall and Spring semesters and have completed the 2012-13 FAFSA, and you must meet the eligibility requirements for a Federal Student Loan as defined by the Department of Education.

If you are a first-time borrower in the Federal Direct Student Loan program you are required to complete a Master Promissory Note (MPN) and an Entrance Counseling Session. Both these requirements are satisfied on line. You will need your 4 digit PIN#, the same one you use to electronically sign your FAFSA. Click on the link below to begin:

www.studentloans.gov

In succeeding years of attendance at MIAD, your Federal Direct Student Loan eligibility will be communicated to you on your award letter. You will have the opportunity to accept or decline your student loans at that time. You are not required to redo the MPN or the Entrance Counseling; however you must apply for financial aid each year by completing the FAFSA.

Federal Direct Subsidized Loans
Federal Direct Subsidized Loan is a need based student loan.  Eligibility is determined by the Federal needs analysis process. ”Subsidized “means the federal government pays the interest on the loan while the student is enrolled at least half time. Annual loan amounts are $3500 for foundation students, $4500 for sophomores and $5500 for juniors and seniors. One-half of the loan amount will be disbursed each semester. Funds are automatically credited to the student's account in the MIAD Business Office.

The interest rate is determined by the Department of Education annually by July 1st. The interest rate for the 2012-13 year is 6.8% fixed. There is also a 1% origination fee charged on the loan.  Deferments, loan consolidation, and refinancing options are available when you enter repayment 6 months after graduation or six months after you are no longer attending school at least half-time.

Federal Direct Unsubsidized Loans
The Federal Direct Unsubsidized Loan is not based on financial need or family income. "Unsubsidized" means that the federal government does not pay the interest on the loan. Dependent students are eligible for $2,000 in addition to the Subsidized Direct Loan amount. Independent students are eligible for $6000 0r $7000 depending on their year in school.

The interest rate is determined by the Department of Education annually by July 1st. The interest rate for the 2011-12 years was 6.8% fixed. There is also a 1% origination fee charged on the loan.  Deferments, loan consolidation, and refinancing options are available when you enter repayment 6 months after graduation or six months after you are no longer attending school at least half-time.

Please contact the MIAD Financial Aid Office for any further information.

About Direct PLUS (Parent) Loans

"PLUS" stands for Parent Loan for Undergraduate Students. This is a federal loan for parents of dependent students. Eligibility for this loan is not based on financial need or family income.

Before applying for a PLUS Loan, students and families must apply for Financial Aid with the Free Application for Federal Student Aid (FAFSA).

Parents choosing a PLUS Loan must apply each year and undergo a credit check. The cost of attendance (COA) minus your financial aid is the total amount you can apply for.  Your 2012-13 financial aid award letter list this amount as “Additional Loan Eligibility”

The interest rate is determined by the Department of Education annually. The interest rate for the 2012-13 year is 7.9%. There is also a 4% origination fee.  This is a loan in the Parent’s name therefore the Parent must apply for the loan.   The interest on the Parent Plus loan is 7.9% fixed.  The origination fee is 4%.  For example, Parent is accepted for a Plus loan for $20,000.  The origination fee is $800.  MIAD will receive $19,200 to apply to your student’s account.

Payments can be deferred while a student is in school. Deferments, loan consolidation, and refinancing options are available during repayment.

How to apply for Direct PLUS (Parent) Loans
To apply for a Federal Direct Parent Loan for Undergraduate Students (PLUS), please click the link below. Parent applying for the loan must sign-in and complete a PLUS application. To process a PLUS through the link, some additional information from your parents is needed.

www.studentloans.gov

Please contact the MIAD Financial Aid Office for any further information.

About Private Alternative Student Loans

MIAD partners with lenders in providing students a non-federal loan program. Private Alternative loans are loans through a lending institution that is not part of the federal government programs.  Research all possibilities for scholarships, grants, and work before borrowing from a Private Alternative loan program.

You can apply to borrow what it costs to attend MIAD (tuition, housing, food, and supplies) minus any other financial aid you are receiving. The amount borrowed must be approved by MIAD staff. If needed MIAD financial aid staff will help you determine the amount of your alternative loan.

Alternative loans can be a choice for students that have a credit worthy cosigner.  In some cases the private alternative loans can be a better option than a Parent Plus loan.  Some lenders do not have origination fees and offer both a fixed and a variable interest rate.   Students are the borrowers with the cosigner taking responsibility if the student does not pay the loan. Cosigners are usually parents or other close relatives.

How to apply for Private Alternative Student Loans

MIAD encourages you to research and apply for an alternative loan that best fits your needs. Please click the following link to begin this process. MIAD has selected its lending partners based on positive past student and institutional experiences.

FASTALT

To complete the alternative loan application you will need to know the following information: the MIAD period of attendance for 2012-13 is August 27, 2012 to May 3, 2013. The total cost of attendance (COA) for MIAD students is estimated at $42,810 if you are living in MIAD housing, $41,800 if you are living off campus and $38,300 if you are living with your parents. The COA minus your financial aid is the total amount you can apply for.  Your 2012-13 financial aid award letter list this amount as “Additional Loan Eligibility”

Please contact the MIAD Financial Aid Office for any further information.