Federal Loans

Direct Loans: Student

Direct loans are offered to students from the Department of Education (opens in a new window).  Students are welcome to decline or reduce the loans offered to them. Below are the types of loans offered.

Federal Direct Subsidized Loans

Federal Direct Subsidized loans are based upon demonstrated financial need and the federal government subsidizes the interest. No interest is charged while the student maintains an enrollment status of at least half-time (six credits).  Interest does begin to accrue from the start of the six month grace period and throughout the repayment period. The interest rate for Federal Direct Subsidized Loans for the 2018-2019 academic year, first disbursement made between July 1, 2018 and June 30, 2019, is 5.05%.

Federal Direct Unsubsidized loans

Federal Direct Unsubsidized loans are not awarded on the basis of financial need. The loan accrues interest from the time it it is disbursed until it is paid in full. If you allow the interest to accrue while you are in school or during repayment periods, this interest will be capitalized. Interest that is capitalized will be added to the principal amount of your loan, and additional interest will be based on the higher amount.

The interest rate for Federal Direct Unsubsidized Loans (Undergraduate) for the 2018-2019 academic year, first disbursement made between July 1, 2018 and June 30, 2019, is 5.05%.

The interest rate for Federal Direct Unsubsidized Loans (Graduate) for the 2018-2019 academic year, first disbursement made between July 1, 2018 and June 30, 2019, is 6.60%.

Students are welcome pay the interest on their Direct Unsubsidized loan while in school and without penalty. Students interested in making payments should contact their lender directly. (Financial Aid can help determine the lender).

Federal Direct Loan Fee

The origination fee is held by the U.S. Department of Education as an expense of assuming a Direct Loan.  Loans with a first disbursement date on or after October 1, 2017 and before October 1, 2018 have a 1.066% fee deducted from each loan disbursement.  Loans with a first disbursement date on or after October 1, 2018 and before October 1, 2019, have a 1.062% fee deducted from each loan disbursement.

Loan Requirements

First time borrowers must complete Entrance Counseling and sign the electronic Master Promissory Note (MPN).  Students are the borrowers of these loans, so they need to login to https://studentloans.gov (opens in a new window) using their FSA ID to complete these documents.  Loans will not show on the student’s bill until both these requirements are met.


Direct Parent Loans (PLUS)

The Parent Loan for Undergraduate Students (PLUS) enables parents of dependent undergraduates to borrow an amount equal to cost of attendance, less other financial aid. Parent loans differ from student loans in that repayment of the loan begins 60 days after the loan is fully disbursed, however parents can defer these payments while their student is attending college at least half-time (6 credits). The interest rate for Federal Direct Parent PLUS Loan for the 2018-2019 academic year, first disbursement date on or after July 1, 2018 and before June 30, 2019, is 7.60%.

Federal Direct PLUS Loan Fee

The origination fee is held by the U.S. Department of Education as an expense of assuming a Direct Loan. Loans with a first disbursement date prior between October 1, 2017 and September 30, 2018, have a 4.264% fee deducted from each loan disbursement. Loans with a first disbursement date on or after October 1, 2018 and before October 1, 2019, have a 4.248% fee deducted from each loan disbursement.

Applying for the PLUS Loan

To apply for a parent plus loan go to https://studentloans.gov (opens in a new window) and click on “Sign In.”  When signing in, use the information of the parent applying for the loan (the parent’s credit will be checked). Click on “Apply for a Parent Plus Loan” and follow the directions. Parents must also sign the electronic Master Promissory Note (MPN). If a parent is denied and they wish to use an endorser, they also must complete Entrance Counseling.


Loan Repayment and Exit Counseling

The first step in repaying loans is to complete required exit counseling through studentloans.gov (opens in a new window). When completing Exit Counseling, students will want to know their current loan balance; this information can be found at the National Student Loan Data System (opens in a new window).

Ed Financial

In order to assist student with loan repayment plans, Becker College has partnered with Ed Financial (opens in a new window). Ed Financial will guide students through every step of the loan repayment process at no additional cost.