Southern New Hampshire University

Direct Loan Information | SNHU

SNHU participates within the Federal Direct Loan Program. Direct loans are fixed-rate student loans for undergraduate and graduate students attending school a minimum of half-time. Federal Direct Loans are the most typical sort of monetary assist to help with paying for varsity.

Direct Loans can be found to eligible students who file a sound FAFSA. Please assessment your SNHU Financial Aid award letter for the quantities you qualify for. For extra info on phrases and rates of interest, please go to the Federal Student Aid web site.

Subsidized and Unsubsidized Direct Loans

Subsidized Direct Loans are awarded based mostly on monetary want. With a Direct Subsidized Loan, the federal government pays the curiosity on the loan whereas the student is at school and throughout the six-month grace interval. First-time debtors taking out federal Direct Subsidized Loans on or after July 1, 2013 are topic to the 150% Direct Subsidized Loan Limit, which limits the period of time a student is eligible to borrow sponsored loans to 150% of their printed program size.

Unsubsidized Direct Loans are loans with curiosity that’s not paid by the federal government. The borrower is liable for the curiosity on an unsubsidized loan from the date the loan is disbursed, even whereas the student remains to be at school. Students could defer paying the curiosity whereas they’re at school by capitalizing the curiosity, which will increase the general payoff quantity of the loan.

Direct Loan Borrower Requirements

First-time Direct Loan debtors should full the next necessities earlier than a loan disbursement will probably be utilized to his/her student account:

  • Complete Entrance Counseling on-line which helps you find out about a Federal Direct Loan, how the method works, how one can handle your schooling bills, and perceive your rights and duties as a borrower.
  • Complete the Master Promissory Note (MPN) which is a authorized doc through which you promise to repay the quantity borrowed and any accrued curiosity to the U.S. Department of Education. It additionally explains the phrases and situations of your loan(s). Review a pattern MPN to totally perceive the phrases and situations of the Direct Loan in addition to borrower duties. SNHU makes use of the multi-year MPN which suggests students can borrow further Direct Loans on a single MPN for as much as ten years.

Borrower Rights and Responsibilities

As a Federal Direct Loan borrower, you could have the best to:

  • Receive a replica of your promissory be aware earlier than or after the loan is made.
  • Receive a disclosure assertion, together with details about rates of interest, charges, loan stability, and the dimensions and variety of funds, earlier than reimbursement of your loan begins.
  • Benefit from a grace interval or deferred fee on sure loans after you permit faculty or drop under half-time enrollment, earlier than your funds start.
  • Prepay all or a part of your loan with no prepayment penalty.
  • Choose from amongst a number of reimbursement choices and periodically change your reimbursement plan, if crucial to acquire an reasonably priced loan fee.
  • Receive written discover in case your loan is bought to a different lender.
  • Apply for a deferment (if eligible) of your loan funds for sure specified durations.
  • Request forbearance out of your lender/servicer for those who’re unable to make funds and do not qualify for a deferment.
  • Receive proof when your loan is paid in full.
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As a Federal Direct Loan borrower, you might be duty for:

  • Repaying your loan, together with accrued curiosity and charges, no matter whether or not you full your schooling, full your program of research within the regular interval allowed for program completion, get hold of employment, or are happy along with your schooling.
  • Completing exit counseling earlier than you permit faculty or drop under half-time enrollment.
  • Notifying your lender/servicer inside 10 days for those who change your title, deal with or cellphone quantity; drop under half-time enrollment standing; withdraw from faculty or switch; or change your commencement date.
  • Directing all correspondence to your lender/servicer, which might change throughout the lifetime of the loan.
  • Making month-to-month funds in your loan after leaving faculty, until you might be in your grace interval or have been granted a forbearance or deferment.
  • Informing your lender/servicer of something which may change your eligibility for an present deferment.

Annual Borrowing Limits

Annual borrowing quantities are outlined by a tutorial 12 months and based mostly on cumulative credit earned towards a particular diploma program.

Year Dependent Student Independent Student
Freshman (0-29 undergraduate credit) $5,500 ($3,500 sponsored max) $9,500 ($3,500 sponsored max)
Sophomore (30-59 undergraduate credit) $6,500 ($4,500 sponsored max) $10,500 ($4,500 sponsored max)
Junior and Senior (60 or extra undergraduate credit) $7,500 ($5,500 sponsored max) $12,500 ($5,500 sponsored max)
Graduate Student $20,500 (unsubsidized solely)

Lifetime Borrowing Limits

Direct Loan limits are outlined by the federal government and dictate how a lot direct loans a student could borrow.

Student Type Lifetime Borrowing Limit
Dependent Undergraduate Student $31,000 ($23,000 most in sponsored loans)
Independent Undergraduate Student $57,500 ($23,000 most in sponsored loans)
Graduate Student $138,500 ($65,500 most in sponsored loans)
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Responsible Borrowing

You ought to all the time borrow what you should help with the price of schooling and never simply the quantity that’s awarded. After you obtain your award letter, for those who discover that you do not want the entire loans you qualify for to cowl the present years tuition and bills, then make sure that to cut back or cancel loan quantity(s) not wanted. This will cut back your general student debt once you enter reimbursement. To revise a loan award, please comply with the process outlined in your award letter notification.

Direct Loan Instructions:

Students are required to signal a Master Promissory Note (MPN) and full on-line Entrance Loan Counseling (ELC) earlier than receiving a Direct loan.

If you’re a first-time Direct Loan Subsidized and/or Unsubsidized borrower:

Step 1: Complete Entrance Counseling session

  • Go to StudentLoans.gov
  • Log in to your account (or create a brand new account) utilizing your FSA ID.*
  • Select “Undergraduate Students” dropdown
  • Choose ‘Complete Entrance Counseling’
  • Follow the directions to finish Entrance Counseling.

Step 2: Complete a Master Promissory Note (MPN)

  • Go to StudentLoans.gov
  • Log in to your account (or create a brand new account) utilizing your FSA ID.*
  • Select “Undergraduate Students” dropdown
  • Choose ‘Complete Loan Agreement for a Subsidized/Unsubsidized Loan (MPN)’
  • Follow the directions to finish the Master Promissory Note.

*If you don’t keep in mind your FSA ID, you’ll be able to entry it on-line at fsaid.ed.gov

Exit Counseling

After you graduate, drop to a lower than half time standing, or are not enrolled, you might be required to finish exit counseling. Exit counseling prepares a borrower for reimbursement by reviewing borrowing historical past, figuring out loan servicers, forecasting month-to-month fee schedules, figuring out reimbursement plans, and offers methods for profitable reimbursement. You can full this counseling requirement on-line by:

  • Going to StudentLoans.gov
  • Log in to your account utilizing your FSA ID.*
  • Select “Undergraduate Students” dropdown
  • Choose ‘Complete Exit Counseling’
  • Follow the directions to finish Exit Counseling

National Student Loan Data System (NSLDS)

The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s on-line database for federal student loan debtors. NSLDS receives knowledge from colleges, loan assure companies, the Direct Loan program and different Department of Education packages. This on-line useful resource means that you can be an informed borrower by offering loan sorts, loan quantities, loan servicers, and disbursement dates. These particulars are the primary steps in figuring out the reimbursement plans that’s best for you to efficiently handle your debt.

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Repayment

Repayment for Federal Direct Loans begins six months after you graduate, withdraw, cease attending, or your enrollment standing is lower than half-time. The customary reimbursement time period is ten years and the rate of interest could range relying on the kind of Direct Loan and the disbursement date.

Please assessment this pattern reimbursement schedule to offer perception into loan reimbursement beneath the usual reimbursement plan. This chart is for estimating functions solely.

Visit the Federal Student Aid Site to study extra concerning the following reimbursement plans and deferment/forbearance choices relying on the kind of Federal student loan borrowed:

  • Repayment plan choices embrace Graduated, Extended, Revised Pay As You Earn (REPAYE), Pay As you Earn (PAYE), Income-Based Repayment (IBR), Income Contingent Repayment (ICR), and Income Sensitive Repayment Plan.
  • Deferment choices embrace enrollment in graduate fellowship or permitted rehabilitation coaching packages, unemployment, financial hardship-, service within the Peace Corps,- and lively army service.
  • Discretionary forbearances embrace monetary difficulties, medical bills, change in employment and different causes acceptable to your loan servicer.
  • Mandatory forbearances embrace service in a medical or dental internship, residency program, certified instructing, nationwide service award recipient in AmeriCorps, and activated members of the National Guard.

Loan Servicer

A loan servicer is an organization that handles the billing and different providers in your federal student loan. Your loan is assigned to a loan servicer by the U.S. Department of Education. The loan servicer will present common updates on the standing of your Direct Loan, work with you on reimbursement plans, loan consolidation, and can help you with different duties associated to your federal student loan. It is necessary to take care of contact along with your loan servicer. If your circumstances change at any time throughout your reimbursement interval, your loan servicer will have the ability to assist. For extra details about loan servicers, go to the Federal Student Aid Site.

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