What types of Direct Loans are available?
Belmont students and their parents will have access to Subsidized, Unsubsidized, Parent and Grad PLUS loans under the Direct Loan Program
How do I apply for Federal Direct Loans?
As with all federal student aid, students must first complete the Free Application for Federal Student Aid (FAFSA). The information on your FAFSA is transmitted to Belmont and the office of Student Financial Services will use this information to determine your need for federal student aid, including Direct Loans. After you have been awarded you will need to complete a Master Promissory Note (MPN) and Entrance Counseling. Parents or Graduate Students who are seeking Direct PLUS loans will also need to complete a credit check.
Federal Stafford Direct Loans
Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.
Types of Federal Direct Stafford Loans
Subsidized: for undergraduate students with demonstrated financial need, as determined by federal regulations. No interest will accrue while a student is in school at least half-time, during the grace period, and during deferment periods. Repayment begins following a six-month grace period after you graduate, leave school, or cease being enrolled as at least a half-time student.
Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. Repayment begins following a six-month grace period after you graduate, leave school, or cease being enrolled as at least a half-time student.
Federal Direct Parent PLUS Loan
Parent PLUS Loans: credit-based loans for the parents of dependent students. Parents may apply for these loans and, if approved, may use the funds to help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
Note: PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).
Note: Students must complete a FAFSA to receive a Direct Parent PLUS loan and must be enrolled at least half-time (6 hours for undergraduate students)
Federal Direct PLUS Loans for Graduates
Graduate PLUS Loan: credit-based loans for graduate students. Graduate students may apply for these loans and, if approved, may use the funds to help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
Note: PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).
Note: Students must complete a FAFSA to receive a Graduate Direct PLUS loan and must be enrolled at least half-time (3 hours for graduate students)
OTHER LOAN OPTIONS
Alternative loans: private, credit-based loans. Students may apply for these loans and, if approved, may use the funds to offset educational expenses. They are designed to help supplement Federal loans for educational costs. For more information, please see our Alternative Loan Information webpage.