The Federal Direct Loan is a low-interest loan for students. The lender is the U.S. Department of Education. Eligibility for the subsidized Direct Loan is based on financial need as determined by the FAFSA. The loan's interest rate is fixed at 3.4 percent (for loans first disbursed after July 1, 2011 and before June 30, 2011). Students who do not show need as determined by the FAFSA or are not eligible for the entire amount of their loan to be subsidized are eligible for the unsubsidized Direct Loan. The interest rate for the unsubsidized Direct Loan is fixed at 6.8 percent. Students must be enrolled in an eligible program at least half-time (at least 6 credit hours) to receive the Direct Loan.
First-year students may be eligible to borrow up to an annual maximum of $3,500. Students who have successfully completed their first year (30 credits) may borrow up to an annual maximum of $4,500.
The maximum loan amount will be reduced utilizing a proportional pro-ration for those academic programs less than 24 college credits or 30 vocational credits (900 clock hours) and/or 30 weeks per academic year (Fall and Spring Semesters), and for those students completing their degree programs in less than an academic year.
The U.S. Department of Education will charge a 1 percent origination fee with an up-front interest rebate of .5 percent. [Note: The up-front interest rebate will be eliminated as of July 1, 2012.]
Loan repayments generally begin six months after the student graduates, leaves school or drops below half-time enrollment.
Bachelor students, admitted at the junior or senior status to the program may borrow up to the annual maximum of $5,500.
Disbursement Policies:
The Office of Financial Aid Services has invested in software that will allow the staff to take advantage of enhanced electronic processing of your Free Application for Federal Student Aid (FAFSA).
Disbursement of all loans and grants will not occur until after the end of the tuition refund period and after enrollment has been verified by the faculty. Book vouchers will be available prior to the start of classes for those students with an approved award.
All student loan funds will be received electronically. Loan funds will not be disbursed until after the end of the tuition refund period and enrollment has been verified. For the 2012 spring semester semester, the first loan disbursements are scheduled for February 10, 2012 for those who have received a financial aid award and submitted all loan paperwork by January 6, 2012 and meet all eligibility requirements (see below).
First-year students who are also first-time borrowers may not receive their loan funds until at least 30 days after classes begin in their program, and their enrollment has been verified. (All first-time borrowers at Daytona State must also complete Direct Loan entrance counseling before their loan can be processed.)
Please note that your eligibility for the Federal Direct Loan (as well as other financial aid) is partially based on your enrollment status as well as the start date of classes. Certain courses have staggered or irregular start dates (such as Term B classes) that are not the same as the beginning of the standard semester. If you are enrolled in these courses, you will not be eligible to receive the loan funds (or other financial aid) until the classes are in progress and enrollment can be verified.
Refunds (including refunds from Federal Direct Loan funds) will be processed through the method you selected when you activated your DaytonaStateOne card.
Student Loan Processing Cycle
The processing of a Student Loan has multiple steps that do not start until the Direct Loan Acceptance Form, Direct Loan entrance counseling, and the Direct Loan Master Promissory Note (Direct MPN) have been completed.
The College makes every attempt possible to make a schedule and workflow that has a goal of disbursing loan balances at the earliest possible time. Coordinating the electronic information among the college, the U.S. Department of Education, Higher One, and faculty attendance submission is a complex process to navigate, administer and coordinate.
Caution: Please remember, at the start of the semester the agencies described above are processing loans for every college in the country resulting in a possible slow down in the system due to the high volume. Also, think of all the computers involved and all of the events that could happen to cause a disruption or slow down of the disbursement. This is why you should never write checks or make payment promises when waiting for a loan disbursement.
The college will always use the first funds received to pay for tuition, fees, and other college obligations, including book vouchers and book loans. For the Fall 2011 semester, due to the large volume during the peak processing cycle, students who return the Direct Loan Acceptance Form after August 19, 2011 may have later estimated disbursement dates than those listed below.
Step 1. The college will review your Direct Loan Acceptance Form to make sure it is completed correctly, or return it to you for correction.
Step 2. The college completes an online data process to electronically send your loan information to the U.S. Department of Education..
Step 3. If you have not already done so, you (the student) should complete the Direct Loan Master Promissory Note (Direct MPN) on the web at www.studentloans.gov. (You can also complete Direct Loan entrance counseling on this web site.)
Step 4. The U.S. Department of Education will review the electronic file received from Daytona State, and verify if a Direct Loan MPN has been completed. While the Direct Loan can be approved by the U.S. Department of Education without a completed Direct Loan MPN, the loan funds will not be approved by the federal government until it verifies that a Direct Loan MPN has been completed.
Step 5. The initial disbursement date each semester is scheduled for approximately 3-4 weeks after classes start to allow for the enrollment verification process to be completed. Loan funds are received once per week from the U.S. Department of Education. First time borrowers cannot have loans disbursed until 30 days after the start of classes.
Step 6. When the loan funds are received from the U.S. Department of Education, they go into a general college clearing account and then the funds are disbursed to the individual student accounts. The college then needs to confirm that enrollment has been verified by instructors for at least 6 credits, and there have been no withdrawals reducing current enrollment to below 6 credits. At the same time, completion of the loan entrance counseling will be verified once again.
The loan funds are used to pay the tuition and fees, books, and Bridge Loan, if any, and if there is a balance, the excess is sent electronically to your Daytona State One card. Excess loan funds received are sent to HigherOne by the end of the day Friday.
Please Note:
A student’s eligibility for the Federal Direct Loan is partially based on the credit hour enrollment as well as the start date of classes. Students should be aware that certain courses have staggered or irregular start dates (A and B terms) that are not the same as the beginning of the standard semester. Students enrolled in these courses are not eligible to receive the loan funds until the classes are in progress and enrollment can be verified. Students enrolled in a course with staggered start dates are encouraged to check with Financial Aid Services for information concerning aid disbursement dates. [For example: Since a student must be enrolled for at least 6 credits in order to receive the loan funds, if you are enrolled for 3 credits in Term A and 3 credits for Term B, your loans will not be disbursed until after Term B begins and your enrollment is verified. If you are enrolled for 6 credits for Term B only, your loan funds will not be disbursed until after Term B begins and your enrollment is verified.]
|
Estimated Disbursement Dates – Spring 2012 |
Spring A |
Spring B |
|
Direct Loan (returning borrowers)* |
February 10* |
April 6 |
|
Direct Loan (first time borrowers) |
February 24 |
April 27 |
|
2nd Disbursement for a one-semester loan period |
March 30 |
April 27 |
|
Pell Grant |
February 10 |
April 6 |
*For students who have received a financial aid award and submitted all loan paperwork by January 6, 2012, and meet all eligibility requirements (see above).
