Alice Lloyd College

Applying for a Federal Direct Loan

Applying for a Federal Direct/Stafford Loan

  1. The FAFSA results must be received (and must be correct) in our office. You may complete the FAFSA at www.fafsa.ed.gov. You will need a PIN # to sign the FAFSA and to sign your Master Promissory Note. You may get or view your PIN here
  2. Look over your current award letter for the loan amount you qualify for. You may request this amount or any amount less than this.  
  3. If you are a first-time borrower at ALC, you must complete an Entrance Interview
  4. You must sign a Direct Loan Master Promissory Note one time, even if you have already signed a promissory note with a bank or other lender, because the federal government will be your lender.

Applying for Federal Direct Parent PLUS Loans

ALC began administering a Federal Direct Loan Program in the fall of 2010. Subsequently, all parents who have had previous Parent Plus Loans with banks and other lenders will have to complete the steps below to receive a Parent Plus Loan.

Parent Plus Loan applications are now available from studentloans.gov.

  1. The FAFSA results must be received and complete in our office. If you have not completed the FAFSA, you may complete it at www.fafsa.gov.
  2. Complete a Federal Direct Parent Loan request sheet (available in the Financial Aid Office) and return it to our office (fax, mail, or drop it off). This will allow us to start the credit approval process with the federal government and certify the loan. If you are not the parent listed on the FAFSA, you must include the student’s birth certificate with the request.
  3. You must also complete a Federal Direct Master Promissory Note with the federal government one time. This must be completed with the federal government even if you have signed a Master Promissory Note with a bank or lender earlier.

Federal Direct Stafford Loans

The Federal Direct Student Loan Program offers students a streamlined process with a known lender, the federal government. For more information about the Stafford Direct Student Loan, click here (pdf). The loans are guaranteed by the federal government and disbursed by the federal government. Federal Stafford Loans are either subsidized or unsubsidized.

General Direct Loan Information

There is a grace period of 6 months after graduation or dropping below half-time attendance before repayment of the principal of the loan begins. Loan amounts are awarded based on grade level and cannot exceed the established cost of attendance for the school, including other aid received. Your awards may include both subsidized and unsubsidized loans.

Direct Subsidized Loan

The Direct Subsidized Loan is awarded on the basis of financial need as determined by the FAFSA. The federal government pays the interest on the loan until the student begins repayment and during authorized periods of deferment.

Direct Unsubsidized Loan

The Direct Unsubsidized loan is not always based on financial need. For unsubsidized loans, the student is responsible for accrued interest from the time the loan is disbursed until it is paid in full. You may choose to pay the interest as it accrues while you are enrolled, or you may defer the interest payments and allow them to accumulate (capitalize). If you choose to pay the interest as it accumulates, you will repay less in the long run. If you defer the interest, you will increase the amount you have to repay.

Direct Stafford Loan Limits

Undergraduate Dependent Student Total School Year Loan Limits:

 

FRESHMAN 

SOPHOMORE

JUNIOR

SENIOR

LIFETIME

Maximum Subsidized $3,500 $4,500 $5,500 $5,500 $23,000
Total Subsidized and Unsubsidized $5,500 $6,500 $7,500 $7,500 $31,00

*Independent students can contact the Financial Aid Office to determine your loan amount.

Direct Stafford Loan Disbursements

If you apply for a loan that covers two semesters, loan funds will be disbursed by the lender in equal amounts at the first of each semester.

To be eligible to receive a loan disbursement, all students must be officially enrolled in a degree-seeking program and be attending at least half-time (6 hours for undergraduate).

Direct Loan Entrance Counseling

All first-time Direct Loan borrowers at ALC must complete an Entrance Interview before receiving any loan funds.

Direct Loan Exit Counseling

The federal government requires all students who stop attending school to complete an Exit Interview. This exit counseling session will give you important information about repaying your loan. This counseling session must be completed by students who drop below half-time, withdraw or graduate from ALC.  

Stafford Loan Application Procedure

  • The results of your Free Application for Federal Student Aid (FAFSA) MUST be on file in the Financial Aid Office and all verification must be complete.
  • Loan eligibility will be listed on your current award letter.  You must accept your awards for the loan to be processed. DO NOT BORROW MORE THAN YOU NEED!
  • All first-time borrowers at Alice Lloyd College for Direct Stafford Loans must complete the Entrance Loan Counseling session by going to and selecting Entrance & Exit Counseling at the top of the page.
  • All borrowers at Alice Lloyd College must complete the Master Promissory Note with Direct Lending.
  • You will be required to use your U.S. Department of Education issued PIN number (the one used to complete the FAFSA) to complete the MPN.

Loan Servicer Information

To find out who services your student loan and how to contact them, you can access the National Student Loan Data System (NSLDS) for students.

Federal Parent PLUS Loans

With the cost of education increasing each year, many parents need help in paying for their student’s post-secondary education. The federal government created the PLUS Loan Program for this purpose.

PLUS (Parent Loan for Undergraduate Students) is a low-interest, federally-funded loan for parents of dependent students. The current interest rate on the Direct Parent PLUS loan is 6.41%. These loans enable parents with good credit histories to borrow funds to pay educational expenses. The amount of the loan may not exceed the cost of attendance minus other financial aid the student will receive. The loan amount cannot exceed the cost of attendance. Repayment for a PLUS Loan begins 60 days after the loan is fully disbursed. A parent borrower is classified as:

  1. The natural parent, adoptive parent or spouse of a remarried parent of an eligible dependent, undergraduate student
  2. A U.S. citizen, U.S. national, or eligible non-citizen
  3. Not in default on any Title IV loan program
  4. Must have a good credit history. Any adverse credit may cause the application to be denied.
  5. Student must be enrolled at least half-time.
  6. Student must be maintaining Satisfactory Academic Progress.

For more information on the Federal Parent PLUS Loan, click here (pdf). To apply for the Direct Parent PLUS Loan, please complete the Parent PLUS Loan application. You must also complete the Master Promissory Note. If the parent is denied by Direct Lending for the Parent PLUS Loan, the student might be eligible for additional funds.

Parent Plus Loan Applications are now available from studentloans.gov.

Private Loans

Private alternative education loans may assist students with the gap between the actual cost of education and the federal loan amount limits you are able to borrow. We encourage students to look first into the federal loan programs. These loans may assist students who have reached their aggregate Stafford Loan limits to complete their education. Eligibility for private student loans often depends on the student’s credit score. These loans are offered by private lenders. The actual amount you may borrow varies and depends on each individual student’s circumstances.

NOTE: Borrowing should be done conservatively to avoid heavy loan debt and the potential for default.

Upcoming Events

Calendar

February 2014
S M T W T F S
26 27 28

Blood Drive

CloseJanuary 28, 2014 @ 9:00 am

Event Details >>

Sponsored by the SGA and the Kentucky Blood Center, this drive is being promoted as the Big Blue Slam (January 27-31st). Every donor will get a free T-shirt and be entered to win an SEC package: 2 tickets for the Thursday through Sunday sessions at the Georgia Dome & 3 nights at the Westin Peachtree Plaza in Atlanta.

Women's Basketball @ Brescia University

CloseJanuary 28, 2014 @ 5:00 pm

Men's Basketball @ Brescia University

CloseJanuary 28, 2014 @ 7:00 pm
29 30 31

JBS 3rd Quarter Mid-Term Ends

CloseJanuary 31, 2014 @ N/A
1

Eagle Day Saturday

CloseFebruary 1, 2014 @ N/A

Women's Basketball versus Indiana University Southeast

CloseFebruary 1, 2014 @ 2:00 pm

Men's Basketball versus Indiana University Southeast

CloseFebruary 1, 2014 @ 4:00 pm
2 3 4

Missions and Beyond

CloseFebruary 4, 2014 @ 1:00 pm

Event Details >>

This convocation will give you some insight as to how to start the process of being a short-term missionary. Sponsored by ALC’s Baptist Collegiate Ministries.
5 6

Women's Basketball @ Cincinnati Christian University

CloseFebruary 6, 2014 @ 6:00 pm

Men's Basketball @ Cincinnati Christian University

CloseFebruary 6, 2014 @ 8:00 pm
7 8

Eagle Day Saturday

CloseFebruary 8, 2014 @ N/A
9

Men's Basketball @ Indiana University East

CloseFebruary 9, 2014 @ 2:00 pm
10 11

General Cassius M. Clay

CloseFebruary 11, 2014 @ 1:00 pm

Event Details >>

Guest Paul David Taulbee will be portraying the soldier, politician, diplomat and crusading editor and abolitionist at this Caney Convocation Series event.

Women's Basketball versus Asbury University

CloseFebruary 11, 2014 @ 6:00 pm

Event Details >>

Doubleheader

Men's Basketball versus Asbury University

CloseFebruary 11, 2014 @ 8:00 pm

Event Details >>

Part of Lady Eagles/Eagles doubleheader.
12 13 14 15

Women's Basketball versus Midway College

CloseFebruary 15, 2014 @ 2:00 pm

Men's Basketball versus Indiana University-Kokomo

CloseFebruary 15, 2014 @ 5:00 pm
16 17

Global Awareness Week

CloseFebruary 17, 2014 @ N/A
18

Global Awareness Week

CloseFebruary 17, 2014 @ N/A

Entrepreneurship

CloseFebruary 18, 2014 @ 1:00 pm

Event Details >>

Our special guests will be representatives from the Forcht Group of Kentucky. This event is sponsored by the ALC Entrepreneurial Program.

Women's Basketball @ Berea College

CloseFebruary 18, 2014 @ 5:30 pm

Men's Basketball @ Berea College

CloseFebruary 18, 2014 @ 7:30 pm
19

Global Awareness Week

CloseFebruary 17, 2014 @ N/A
20

Global Awareness Week

CloseFebruary 17, 2014 @ N/A

Eagles Baseball @ Hiwassee College

CloseFebruary 20, 2014 @ 1:00 pm

Women's Basketball @ Asbury University

CloseFebruary 20, 2014 @ 6:00 pm

Men's Basketball @ Asbury University

CloseFebruary 20, 2014 @ 8:00 pm
21

Jimmy Rose in Concert!

CloseFebruary 21, 2014 @ 7:00 pm

Event Details >>

The June Buchanan PTO is proud to present Jimmy Rose in concert!
22

Eagle Day Saturday

CloseFebruary 22, 2014 @ N/A
23

Eagles Baseball versus Ohio-Chillicothe

CloseFebruary 23, 2014 @ 1:00 pm

Event Details >>

Doubleheader

Women's Basketball versus Brescia University

CloseFebruary 23, 2014 @ 2:00 pm

Event Details >>

Senior Day

Men's Basketball versus Brescia University

CloseFebruary 23, 2014 @ 4:00 pm

Event Details >>

Senior Day
24 25

James V. Mongiardo Speech Competition

CloseFebruary 25, 2014 @ 1:00 pm

Event Details >>

ALC’s twenty-first annual speech competition. Watch for postings regarding topic and application deadlines!

Eagles Baseball @ UPike

CloseFebruary 25, 2014 @ 3:00 pm

Event Details >>

9 innings

Women's Basketball versus Midway College

CloseFebruary 25, 2014 @ 7:00 pm

Event Details >>

KIAC Tournament Quarterfinals

Men's Basketball @ Brescia University

CloseFebruary 25, 2014 @ 8:00 pm

Event Details >>

KIAC Tournament Quarterfinals
26 27 28

Midterm Grades Due

CloseFebruary 28, 2014 @ N/A

Eagles Baseball versus Mt. St. Joseph

CloseFebruary 28, 2014 @ 1:00 pm

Event Details >>

Doubleheader

KIAC Tournament: Asbury versus Midway

CloseFebruary 28, 2014 @ 1:00 pm

Event Details >>

Women’s Semifinal #1

Men's Basketball versus Cincinnati Christian University

CloseFebruary 28, 2014 @ 3:00 pm

Event Details >>

KIAC Tournament Final Four

KIAC Tournament: Point Park versus Berea

CloseFebruary 28, 2014 @ 5:30 pm

Event Details >>

Women’s Semifinal #2
1

Eagle Day Saturday

CloseMarch 1, 2014 @ N/A

Eagles Baseball versus Ohio State-Lima

CloseMarch 1, 2014 @ 1:00 pm

Event Details >>

Doubleheader

KIAC Women's Championship Game

CloseMarch 1, 2014 @ 1:00 pm

KIAC Men's Championship Game

CloseMarch 1, 2014 @ 3:30 pm