Federal Student Loans
Funding for federal loans is contingent on federal approval. To be considered for Federal Financial Aid, students must complete a Free Application for Federal Student Aid (FAFSA) each year. This application is available beginning October 1st each year. AU’s priority deadline is March 1st.
Federal Direct Student Loans
Federal Direct Subsidized and Unsubsidized Loans are low interest loans made by the U.S. Department of Education. Borrowers must be enrolled at least half-time in a degree seeking program and otherwise eligible [link to general eligibility below]. These loans do not require a credit check. To apply, students must complete a Free Application for Federal Student Aid (FAFSA), complete an online Entrance Counseling session, and sign a Master Promissory Note (MPN). To decline federal student loans, students can email Aid@AndersonUniversity.edu.
A Subsidized Direct Loan awarded on the basis of financial need. No interest payments are required before repayment begins or during an authorized period of deferment. The federal government subsidizes the loan during these periods by paying the interest for the student. Graduate level students cannot borrow Subsidized Loans.
An Unsubsidized Direct Loan is not awarded on the basis of financial need. The student will be charged interest from the time the loan is disbursed until it is paid in full. If interest is allowed to accumulate, it will be capitalized which means the interest will be added to the principal amount. Then interest will be charged based on this higher amount. Capitalization will increase the amount that must be repaid. If the student chooses to pay the interest as it accumulates, loan payments will cost less.
Repayment begins six months after graduating or dropping below half-time enrollment. This six month period is referred to as a grace period.
Maximum annual loan amounts are determined by grade level. Amounts for undergraduate students can range from $3,500 to $12,500 per academic year. The maximum annual loan amount for graduate students is $20,500. Federal Direct loans have an aggregate (lifetime) limit.
Annual and Aggregate Limits:
Direct PLUS Loans for Parents of Dependent Undergraduate Students
The Parent PLUS Loan is a federal loan available to parents of dependent students. The parent must be the student’s biological or adoptive parent or the student’s stepparent if the biological or adoptive parent has remarried at the time of application. Eligibility is determined by a credit check. Monthly repayment begins when the loan has fully disbursed and can vary based upon the interest rate and loan amount borrowed.
Students must complete a Free Application for Federal Student Aid (FAFSA) and be enrolled at least half time. Students should consider borrowing the Federal Direct Subsidized and Unsubsidized Loans as available before a parent borrows a PLUS loan. The interest and origination fee are higher for a PLUS loan than for Subsidized and Unsubsidized loans. To apply, parents must use their FSA ID to sign in at https://studentaid.gov where they can complete a Parent PLUS Loan application and, if approved, complete a PLUS Loan Master Promissory Note (MPN).
The amount a parent can borrow cannot exceed the student’s cost of attendance less other aid awarded. A dependent student whose parent is not approved for a PLUS loan will be offered an additional Unsubsidized Loan based on grade level (freshmen/sophomores = $4,000 per year and juniors/seniors = $5,000 per year).
Direct PLUS Loans for Graduate Students
The PLUS Loan is an additional federal loan available to graduate students. Eligibility is determined by a credit check. Monthly repayment begins when the loan has fully disbursed and can vary based upon the interest rate and loan amount borrowed.
To apply, students must complete a Free Application for Federal Student Aid (FAFSA) and use their FSA ID to sign in at https://studentaid.gov to complete a Graduate PLUS Loan application and, if approved, complete a PLUS Loan Master Promissory Note (MPN).
The amount a student can borrow cannot exceed the cost of attendance less other aid awarded.
Additional Information about Federal Student Loans
For more information on federal student loans, including information about Federal Student Loan Origination Fees, Interest, Repayment, Deferment, Forbearance, and Forgiveness, visit the Federal Student Aid website https://studentaid.gov. Repayment Estimation tools are available at https://studentaid.gov.
Federal student loan records of students and parents are submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined by the authorized users of the data system. Student and parents may view their loan record history online through NSLDS at https://nslds.ed.gov/.
Student who receive Federal Student Loans while attending Anderson University should complete the Loan Exit Counseling online at https://studentaid.gov after they are no longer enrolled at least half-time.
General Federal Student Aid Eligibility
To be eligible for federal student loans, students must…
- be a U.S. citizen or an eligible noncitizen;
- have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau);
- be registered with Selective Service, if you’re a male (you must register between the ages of 18 and 25);
- be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program;
- be enrolled at least half-time;
- maintain satisfactory academic progress in college or career school;
- sign the certification statement on the Free Application for Federal Student Aid (FAFSA) stating that
- show you’re qualified to obtain a college or career school education by
- having a high school diploma or a recognized equivalent such as a General Educational Development (GED) certificate;
- completing a high school education in a homeschool setting approved under state law (or—if state law does not require a homeschooled student to obtain a completion credential—completing a high school education in a homeschool setting that qualifies as an exemption from compulsory attendance requirements under state law); or
- enrolling in an eligible career pathway program and meeting one of the “ability-to-benefit” alternatives.
FAFSA Federal School Code: 003418
Office of Financial Aid & Scholarships
316 Boulevard, Anderson, SC 29621
(864) 231-7555 | Aid@AndersonUniversity.edu