Federal Direct Loan Programs
Pacifica participates in the US Department of Education William Ford Direct Loan program. The Direct Loan program provides graduate students with access to federally Unsubsidized Stafford Loans as well as PLUS Loans for graduate and professional students by allowing students to borrow directly from the US Department of Education rather than a private lender.
To learn more about these Federal Direct Loan programs, please review the information provided below or visit the US Department of Education website.
GENERAL ELIGIBILITY REQUIREMENTS:
A student must adhere to the following in order to qualify for federal financial aid at Pacifica:
1) Be admitted and enrolled at least half time (minimum 3 units/quarter) in an eligible degree program at Pacifica.
2) Complete the Free Application for Federal Student Aid (FAFSA) form each year to determine eligibility for federal financial assistance. Pacifica's School Code is G31268.
3) Be in good standing in order to qualify for federal financial assistance (student may not have federal liens, or be in default on prior student loans, or owe a refund on any federal financial aid program).
4) Be a U.S. Citizen, legal permanent resident of United States or eligible non-citizen; provide proof of compliance with drug conviction regulations and if male, provide proof of compliance with selective service registration.
5) Be making Financial Aid Satisfactory Academic Progress (FSAP) toward the completion of degree requirements (See FSAP policy for details).
DIRECT STAFFORD LOANS:
- Low interest loans made to students admitted to an eligible academic program and attending at least half time (minimum 3 units/quarter)
- Fixed interest rate of 5.41% for the life of the loan. The interest rate for the upcoming school year will be released by the federal government in the Summer.
- Subject to a 1.051% origination fee, which is deducted from each quarterly disbursement. Loans first disbursed after 12/1/2013 will be subject to 1.072% origination fee.
- Repayment is deferred while enrolled in school at least half-time and during a six-month post-enrollment grace period
- The standard repayment period is ten (10) years although there are extended repayment terms available. Consult with the Department of Education's loan servicers for complete details on the repayment options available
- Early repayment in whole or in part may be made without penalty at any time.
Graduate students may borrow an annual maximum of $20,500 in the Direct Stafford Loan program. The aggregate loan limit of all federal Stafford Loans (FFELP + Direct combined) for a graduate student is $138,500 (including undergraduate loans and a maximum of $65,500 in Subsidized Stafford Loans).
Direct Subsidized Stafford Loans
Direct Subsidized Stafford Loans are no longer available for graduate and professional students effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012. The terms and conditions of Direct Subsidized Stafford Loans received by any student for loan periods beginning before July 1, 2012 are not affected by this change.
Direct Unsubsidized Stafford Loans
Direct Unsubsidized Stafford Loans are available to students regardless of financial need. The annual maximum for graduate students is $20,500. Interest on this loan begins to accrue upon disbursement. The student is responsible for the interest on this loan during eligible periods of enrollment and deferments (interest deferment options are available).
DIRECT GRADUATE PLUS LOANS:
- Available to qualifying graduate/professional students to assist with education expenses (tuition, housing, books, travel, and reasonable personal expenses)
- Direct PLUS Loans are not based on income or assets
- Fixed interest rate at 6.41% and interest begins to accrue as the funds are disbursed each quarter. The interest rate for the upcoming school year will be released by the federal government in the Summer.
- Subject to 4.204% origination fees, which is deducted from each quarterly disbursement. Loans with first disbursement after 12/1/2013 will be subject to 4.288% origination fees.
- Repayment is deferred while enrolled in school at least half-time and during a six-month post-enrollment deferment period
- The maximum repayment period is ten (10) years although there are extended repayment terms available. Consult with the Department of Education's loan servicers for complete details on the repayment options available
- Early repayment in whole or in part may be made without penalty at any time
To qualify, Direct Graduate Plus Loan borrowers must:
1) Be a U.S. Citizen or eligible non-citizen and have a valid Social Security Number.
2) Complete the FAFSA and apply for the maximum amount of Stafford loans for which you are eligible.
3) Meet credit eligibility requirements as determined by the US Department of Education.
4) Complete a Direct Plus Loan Request and an electronic Master Promissory Note (E-MPN) online with the US Department of Education under the Manage My Direct Loan section.
5) Complete online Entrance Counseling requirements online with the US Department of Education under the Manage My Direct Loan section.
DIRECT LOAN REPAYMENT:
The Direct Stafford and Direct PLUS Loans offer in-school loan deferments while enrolled at least half-time (minimum of 3 units/quarter). Both loans offer a six-month post-enrollment grace period. In addition, a number of repayment plans are available including standard, extended, graduated, income sensitive, and income based repayment plans. To learn more about these repayment programs or to use the loan repayment calculator to estimate your monthly payments, log on to the US Department of Education website. Click here for a quick reference guide to student loan repayment.
LOAN FORGIVENESS PROGRAMS:
With student loan debt increasing each year it is important for you to be aware of different programs available to assist you in repayment of your loans. There are federal and state programs that provide loan forgiveness or payment assistance in exchange for service commitments. The programs are offered mostly by federal and state governments and the service commitments vary. The programs are designed to encourage college students of all ages to consider careers in teaching or to help fulfill specific needs in rural or inner-city communities. To learn more about these programs click here.