Federal Loans

What are Federal Loans?

Federal student loans provide the opportunity to postpone paying for college expenses until the student's education is complete. Federal loans are borrowed funds that must be repaid with interest.  A federal student loan allows students and parents to borrow money to help pay for college.  These loans are supported by the federal government.  They have low interest rates and flexible repayment terms and options.  Students borrowing from these programs must complete loan counseling prior to the loan being disbursed and again upon graduation, withdrawing from the institution, or dropping below half time.

All federal loans are disbursed directly to the student's account.  Generally, they are applied equally over each period of enrollment (half per semester in Crete, or equally over the number of terms enrolled at the Lincoln campus).  If funds remain after all direct costs have been paid, the credit may be used to pay other education-related expenses.  Credit refunds will be issued to students by check or through direct deposit.  A student can sign up for direct deposit, by logging into WebAdvisor, selecting "Financial Information" from the menu and then "View your account/Make Payments".

What Kind of Federal Student Loans are Available?

Federal Direct Subsidized Stafford Loans:

Student borrowers are not charge interest while attending school at least half-time, during deferments, and sometimes during grace period. Repayment begins six months after graduation, withdrawal from college, or dropping below half-time status.

NEW!  Federal Direct Subsidized loans disbursed on or after July 1, 2012 through June 30,2014 are no longer eligible to receive the interest subsidy during grace period.

Eligibility:  The student must demonstrate financial need and be enrolled at least half-time.  The financial aid office makes the determination of eligibility using the results of the Free Application for Federal Student Aid (FAFSA).

Interest Rate:  Loans disbursed on or after July 1, 2012 through June 30, 2013: 6.8% fixed for undergraduate students

NEW! Graduate students are no longer eligible to receive subsidized loans beginning July 1, 2012 through June 30, 2014.

Fees:  Beginning July, 1, 2012 through June 30, 2014, a fee equal to 1.0 percent will be withheld from Stafford loan proceeds and retained by the U.S Department of Education.

Repayment:  Begins 6 months after graduating, dropping below half-time or withdrawing from school.  Several repayment options are available. Contact your loan servicer to determine what payment option is best for your situation.

Limit:  (see chart)

Federal Direct Unsubsidized Stafford Loans:

Financial need is not a requirement to qualify for this type of loan. The borrower is responsible for the interest that accrues beginning the day the first disbursement occurs.  Borrowers can choose to pay interest or have it deferred until repayment begins.  If deferred, the outstanding accrued interest will be capitalized or added to the principle of the loan.  If you wish to make interest-only payments, contact the servicer of your loan.

Eligibility: Students do not have to demonstrate need to be eligible for this loan, however, a FAFSA must be on file in order to qualify. The student must be enrolled at least half time.  The financial aid office determines eligibility.

NEW! Beginning July 1, 2012 through June 30, 2014 graduate students will only be eligible to receive Unsubsidized Stafford loans.

Interest Rate: 6.8 percent fixed.

Fees:   Beginning July, 1, 2012 through June 30, 2014, a fee equal to 1.0 percent will be withheld from Stafford loan proceeds and retained by the U.S Department of Education.

Repayment:  Begins 6 months after graduating, dropping below half-time or withdrawing from school.  Several repayment options are available. Contact your loan servicer to determine what payment option is best for your situation.

Limit:  (see chart)

NOTE:  Depending on the financial need demonstrated by the undergraduate student, the student may qualify for a combination of both subsidized and unsubsidized loans. The federal government sets annual and aggregate loan limits based on the student's year in school and whether they are dependent or independent students.

How to complete a Federal Stafford Loan Master Promissory (MPN):

You can complete both Loan counseling and the MPN by going to www.studentloans.gov. 

NOTE:  If you are a first time borrower, you must complete online loan Entrance Counseling along with the MPN.

Students who are not new borrowers should contact the financial aid office to determine if a new MPN is required for them to receive loans.

You will need your Federal Student Aid Personal Identification Number (FAFSA PIN) to complete the Master Promissory Note (MPN).  If you do not know your PIN, you can request a duplicate PIN by going to www.pin.ed.gov website.

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Federal Perkins Loan (limited funding):

Federal Perkins Loans are borrowed through Doane College.  Amounts vary depending on the student's eligibility and the amount of Perkins loan money available. 

Eligibility:  Student must demonstrate exceptional financial need.  The financial aid office makes the determination of eligibility using the results of the Free Application for Federal Student Aid (FAFSA). Loans are awarded on a first come, first served basis.

Interest Rate: 5.0 percent fixed.

Fees:   None

Repayment:  Begins 9 months after graduating, dropping below half-time or withdrawing from school. 

Annual Loan Limits: 

                        Undergraduates:  up to $5500 annual limit

                        Graduates: up to $8000 annual limit

Total Aggregate limits for students:

                        Undergraduates:  $27,500

                        Graduates: $60,000 (including undergraduate loans) 

The Perkins loan is subsidized while the student is in school and through their nine month grace period.  Once in repayment the student becomes responsible for the interest.  The interest rate on a Perkins loan is currently a fixed rate of 5.0 percent. 

If you have been awarded and accepted a Perkins loan, a student will receive notification from the Doane College Business Office on how to complete Perkins loan requirements. All loans not signed by November 1 are subject to cancellation.

Perkins loans may be all or partially forgiven or cancelled for working In a number of public service areas including teaching.  (Defaulted loans do not qualify).  Contact the Perkins Loan Office in the business office for more information.

Deferments are available for student status, economic hardship, military service, select volunteer services, etc. Contact the Perkins Loan Officer in Doane's business office for more information

Federal Direct PLUS (Parent) Loan:

Parents of dependent students may apply for a Direct Plus loan to help pay for their dependent child's(as determined by the FAFSA) educational expenses. Loan funds are borrowed from and repaid to the U.S. Department of Education. 

Eligibility:  Parents who do not have adverse credit history may borrow for their dependent student.  Applications are approved by the Federal Direct Loan Origination center based on a credit check. The parent does not need to demonstrate financial need to qualify. The dependent student must be enrolled at least half-time and a current FAFSA must be on file.  The parent and student must be U.S. citizens or eligible non-citizens and meet other general eligibility requirements as determined by the U.S. Department of Education.

Interest Rate: Interest rate is 7.9 percent fixed.

Fees:  A fee equal to 4 percent will be withheld from PLUS loan proceeds by the U.S. Department of Education. 

Repayment:  Begins after the loan is fully disbursed.  Several repayment options are available through the loan servicer assigned to the loan. 

NOTE:  Deferment options (postponing repayment) are available while the student is enrolled at least half time and during the 6 month grace period. 

Annual/Aggregate Limits:  Parents can borrow up to the full annual cost of attendance minus any financial aid the student receives.  There is no overall aggregate limit for PLUS loans.

How to Apply: 

1)    The parent should log into www.studentloans.gov with his/her FSA personal identification number.

2)    Complete Request Direct PLUS Loan (this is the credit check conducted by the U.S. Department of Education.

3)    Complete the Direct PLUS Master Promissory Note (MPN) if you are borrowing for the FIRST time on behalf of the Doane college student.

You will need your Federal Student Aid Personal Identification Number (PIN).  If you do not have this, you may request a duplicate PIN by going to:  www.pin.ed.gov.

Each year the parent wishes to borrow the PLUS loan for his/her dependent student, a credit check is required to determine if the parent is credit worthy by the U.S. Department of Education. 

NOTE:  Students whose parents are denied a Parent PLUS loan are eligible to borrow additional loans. The student should contact the Financial Aid Office to determine how much additional loan the student is eligible to receive and request the additional funds.

What Is the National Student Loan Data System (NSLDS)?

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. A student and/or parent is able to track all of his/her federal financial aid received through this database.  NSLDS Student Access provides a single place for a student to access all of their loan data and grand data.  It provides loan servicer contact information as well as information on the amount borrowed, interest accumulated, etc. By clicking on the link below, a student can review their loan history and grant history. The student will need his/her FSA Personal Identification Number to log in. Students can also complete loan Exit Counseling through this website.

http://www.nslds.ed.gov/nslds_SA/

Annual Aggregate Loan Limits based on the number of hours the student has successfully completed:

NOTE:  Undergraduate Dependent Students whose parents are denied a Parent PLUS loan are able to borrow the same amount of loans as an Independent undergraduate student .

Total Aggregate Limits:

Dependent Undergraduate Students:  $31,000 (subsidized and unsubsidized combined of which $23,000 can be subsidized).

Independent Undergraduate Students:  $57,500 (subsidized and unsubsidized combined of which $23,000 can be subsidized).

*Graduate/Professional Students:   $138,500 (subsidized and unsubsidized combined of which $65,500 can be subsidized).Starting July 1, 2012, graduate students are only eligible to receive Unsubsidized loans.

NOTE:  Undergraduate loans for both dependent and independent students are subject to proration.

Accelerated Certification (Fast Track) students an borrow as a 5^th year independent undergraduate student.  Maximum eligibility is $12,500. 

For more information, call, write, or e-mail:

Financial Aid Office
Doane College
1014 Boswell Avenue
Crete, Nebraska 68333-6263

402.826.8260
Toll-Free: 1.800.333.6263
E-mail: faoffice@doane.edu