Direct Student Loans
Direct Student Loans are low-interest loans for students to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution. Direct Subsidized and Direct Unsubsidized Loans first disbursed on or after July 1, 2006, have a fixed interest rate of 6.8%. In addition to interest, you pay a loan fee of up to 3% of the principal amount of each Direct Subsidized or Direct Unsubsidized Loan that you receive.

Direct Subsidized Loans are loans for students with financial need, as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period and during deferment periods.

Direct Unsubsidized Loans are loans for students that are not based on financial need. Interest is charged during all periods.

To apply for a Direct Student Loan the student must have a Free Application for Federal Student Aid on file with the Office of Student Financial Services. Please see the information in Apply for Assistance for more details.

To recieve Direct Student Loan funding:

• Accept loan offer online
• Complete Entrance Counseling (If you are applying for loans and have not had a direct loan since 1999) and
• Complete a Master Promissory Note online. The Master Promissory Note requires a PIN number to be complete.

Your loan funds will be paid out equally over the terms of enrollment for the academic year. Funds for each term will be credited to your account. Any funds remaining after charges are paid will be paid directly to the student via check, mailed from the Business Office at the end of the second week of the term. Class attendance is required for loan disbursements.

Please note:

Student loans require a minimum of 6 hours of enrollment at Athens State University.

Loans are setup to pay over the terms remaining in the academic year.

If the student requests loans in the Fall, the loans are set up for Fall, Spring and Summer.

If the student requests loans in the Spring, the loans are set up for Spring and Summer.

If the student requests loans in the Summer, the loans are set up for Summer.

To make other arrangements for loan disbursements, send an email to finaid@athens.edu.

Exit counseling is required in the term of graduation.

Sites of Interest to the Direct Loan Borrower

	Direct Loans - publications for students
	Direct Loan Servicing Center - View your direct loan account online with the US Department of Education
	Entrance Counseling - Complete the required entrance counseling here.
	Master Promissory Note — complete the required Master Promissory Note here.
	Exit Counseling — complete the required exit counseling for graduation here.
	Teachers Incentive — Loan Cancellation and Deferment information for Teachers in Shortage Areas.
	Guide to Defaulted Student Loans — Help for that Student Loan in Default Status.
	Student Loan Locator via the National Student Loan Data System — Check out your unpaid Student Loan(s).
	Loan Consolidation Program — Group your outstanding loans into one for repayment, lock in a low interest rate.