Overview of direct loans (student loans) and how to apply for 2020–2021, which goes from fall 2020–summer 2021
For information about federal direct loans, go to abtech.edu/financial-aid. Select "Direct Loans" on the left.
Direct loans are available for students who are actively attending or have already completed a minimum of six in-program credit hours, who are in good academic standing in a qualifying program, and who are not in default on any other student loans. Direct loans may be either subsidized or unsubsidized and must be repaid. The interest rate for direct loans is variable. The amount a student can borrow per academic year will depend upon enrollment, dependency status, and other aid received. The maximum amounts you can borrow per year are listed on our website under "Direct Loans."
To apply for a loan, you must complete the following steps:
Your financial aid can take a minimum of two–four weeks to process and can be longer during peak times of the year. If the Financial Aid Office needs additional documentation to process your financial aid, the process could take longer. Loan applications can take an additional two–four weeks to process. The entire loan application process can take around four–eight weeks to process.
The deadline to complete all loan requirements can be be found by visiting the Financial Aid Dates & Deadlines page and selecting the link for the correct semester.
All Federal Direct Student Loans will be awarded in multiple disbursements per semester. Direct Loans are disbursed after your attendance is recorded in at least six credit hours. If you're actively taking at least six credit hours, you'll be eligible to receive the full amount of your loans for that semester; however, the loan will still be disbursed in multiple separate disbursements per semester. As with other types of financial aid, Direct Loans are disbursed through the preference you set up with BankMobile.
Subsidized loan funds are awarded based on financial need. The federal government pays your interest while you're enrolled in school at least half-time in a qualifying program. You begin paying interest when repayment of the loan begins.
Unsubsidized loan funds are not need-based. You will be charged interest from the time funds are disbursed until the loan is paid in full. You can choose to make monthly interest payments while you're in school, or you can choose to defer interest payments. If you choose to defer interest, it will accrue and will be added to the principal amount of the loan.
A Parent Loan for Undergraduate Students (PLUS) is a federal direct loan which the parent may apply for.
Key Words: direct loan, loan, loans, borrow, financial aid, apply, subsidized loan, unsubsidized loan, MPN, Master Promissory Note, Entrance Counseling, Financial Aid Matters
Article ID: 122
Created On: Tue, Oct 30, 2012 at 9:04 AM
Last Updated On: Thu, Jul 16, 2020 at 1:05 PM
Online URL: https://info.abtech.edu/article.php?id=122