Federal Direct Loans
Federal Direct Loans are available to all students who file the Free Application for Federal Student Aid (FAFSA) and are enrolled at least half-time.
Subsidized Loan: Awarded on the basis of financial need. No interest is charged before you begin repayment. The federal government “subsidizes” the interest during periods of enrollment.
Unsubsidized Loan: Not awarded on the basis of need. Interest is charged from the time the loan is disbursed until it is paid in full. As the interest accumulates, it will be capitalized; meaning the interest will be added to the principal amount of the loan and additional interest will then be based upon the higher amount.
| Borrowing Limits |
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The maximum Direct Loan amount the student is eligible for is reflected on the financial aid award letter. Loan amounts are subject to change. Visit Federal Student Aid for the most current information. First Year Undergraduate 0 – 24 earned credits Dependent Student $ 5,500 Independent* $ 9,500 Second Year Undergraduate 25 – 55 earned credits Dependent Student $ 6,500 Independent* $10,500 Third Year and Beyond Undergraduate 56 + earned credits Dependent Student $ 7,500 Independent* $12,500 *Also dependent undergraduate students whose parents are unable to obtain a PLUS loan |
| Interest Rates and Fees |
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4.99% Fixed* *subsidized and unsubsidized loans first disbursed on or after July 1, 2022 and before July 1, 2023. 1.057% Origination Fee*
*Loan fee effective on all loans disbursed on or after October 1, 2020 and before October 1, 2023. Please visit Federal Student Aid for the most current rates |
| Disbursement |
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The following must be complete before a loan can disburse. (note: you may have completed these steps in previous years. Please login to your portal and select “My Self Service” Financial aid and review your checklist to determine if you need to do anything further.)
Disbursement Schedule First Day of Classes: All required steps must be complete. Second Week of the Term: Loans that have all the above requirements met will post to the student account.
*Exceptions
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| Repayment and Loan Forgiveness Information |
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Exit Counseling If you previously received a subsidized or unsubsidized loan and are no longer enrolled at least half time which includes withdrawing or graduating from Alma College you are required to complete Exit Counseling. You will receive an e-mail from our office regarding this requirement including next steps if you are required to complete counseling. It does not matter if you plan to enroll at another institution you still must complete the counseling as there is a break in your full time enrollment. LOAN SIMULATOR
STUDENT LOAN FORGIVENESS Do you qualify? REMEMBER – If you have missed a payment or are having trouble making payments, immediately contact your loan servicer to discuss options that may be available to you. |
| Loan Cancellation |
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I no longer wish to borrow my loan how do I cancel it? Please send an e-mail to FinAid@alma.edu and include the information below. This must be done within 14 days of the disbursement posting to your account. We will send an e-mail notifying you of your 14-day window. If it is past 14 days please inquire with our office to see what options may be available.
IMPORTANT – If you cancel your loan(s) you may be left with an outstanding balance. Arrangements will need to be made immediately to pay this balance. No Action Taken on Offered Loans Any pending loans (loans not accepted in the student portal or loans with incomplete steps) will be canceled by the financial aid office by the end of September.
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