NEW CHANGES IN FEDERAL LEGISLATION

- ADDITIONAL LOAN ELIGIBILITY

Due to recent changes in Federal Legislation (Ensuring Continued Access to Student Loans Act of 2008), you may have additional loan eligibility available to you under the Direct Loan Program.  Unsubsidized loans accrue interest at a 6.8% fixed interest rate upon disbursement into your account.

- Dependent students may request up to an additional $2,000 in unsubsidized loans.

- Independent Freshman and Sophomores may request up to an additional $6,000 in unsubsidized loans.

- Independent Juniors and Seniors may request up to an additional $7,000 in unsubsidized loans.

These amounts will be limited by cost of attendance limits and aggregate loan maximums.

Please borrow responsibly by only borrowing what you need.

To request an increase in your loan amounts, e-mail us at fao@nmu.edu or stop into the Financial Aid Office.  Please include your student I.N. and the amount you are requesting.

Direct Loan Award

WILLIAM D. FORD FEDERAL DIRECT LOAN INFORMATION

As a part of your financial aid, you may have been offered a William D. Ford Federal Direct Loan. If you accept this loan offer, you will be borrowing money from the U.S. Department of Education and agreeing to repay it under the terms and conditions of the loan.  Beginning with the 2006 Fall Semester, the interest rate is a fixed 6.8% for both subsidized and unsubsidized loans.   First-time Direct Loan borrowers must complete entrance counseling and promissory note requirements (see First-Time Borrower Requirements below) .

Direct Subsidized Loans do not accrue interest while a student is enrolled at least half-time or during grace periods.  Financial need must be demonstrated in order to qualify for a subsidized loan.

Direct Unsubsidized Loans do build interest, even while a student is enrolled and during grace periods. You can elect to pay the interest costs as they are billed or you can defer payment of the interest and it will be added to the loan principle.   Financial need is not required to obtain an unsubsidized loan.

First-Time Borrower Requirements

Entrance Counseling: You must complete an Entrance Counseling session before we can disburse loan funds to you. This requirement can be met by completing a quiz on-line at:  www.DLSSOnline.com

Once you have passed the quiz, the system will display the quiz results and allow you to either log in with a PIN or enter your student information.  Please log in with your student information (name, SSN, date of birth).  DO NOT USE YOUR PIN.  The system will display your Direct Subsidized Loan and/or Direct Unsubsidized Loan Rights and Responsibilities as a borrower.  You should print this page for your records.

Promissory Note:   You are required to complete a Master Promissory Note (MPN) before loan funds can be disbursed to you. You can either complete an electronic promissory note online or contact the Financial Aid Office by e-mail (fao@nmu.edu ) or fax (906-227-2321) in order to request a paper copy of an MPN to be sent to you. Click here to view a summary of your Right’s and Responsibilities under the Direct Loan program.

       Electronic MPN

• You will need your Department of Education PIN in order to complete the electronic MPN.   If you have forgotten your PIN or do not yet have one, go to www.pin.ed.gov to have your PIN sent to you.
• Go to http://DLenote.ed.gov to complete the electronic MPN.   You will need to complete the entire MPN once you begin.
• Helpful Hint: While going through the electronic MPN process, take note of the three-digit confirmation code assigned to you.  When you reach the "Review Signed MPN" section, the code will be located at the bottom of the third page of the MPN. You will need this number later in the process, and cannot return to the page where it is assigned once you have left it.

Understand the Timing of Disbursements

Two Disbursement Requirements: Loans made for the regular academic year will have one disbursement for fall and one for winter. For students with one semester loans (fall-only or winter-only), the full loan amount will be paid out at the beginning of the semester if all requirements have been met. For students with summer loans, the two disbursement requirement means that there will be a delay in the full disbursement of the loans. Summer loans will have both disbursements within that semester, with the second disbursement being no earlier than the midpoint of the semester.

Repayment Information

Repayment of subsidized and unsubsidized loans begins six months after the student graduates, leaves school or drops below half-time enrollment. The interest rate for both subsidized and unsubsidized loans beginning in the fall 2006 is a fixed 6.8%. For loans borrowed prior to the fall 2006 semester, the rate remains variable currently at 4.7% while in school and at 5.3% while in repayment. This variable rate changes July 1, 2006 to 6.54% in school and 7.14% while in repayment. To access information on your previously disbursed Direct Loans, as well as an overall balance, simply go to the Department of Education’s National Student Loan Data System Web site