Federal Direct Unsubsidized Loan 2019-2020 Fact Sheet ...

[Pages:3]Federal Direct Unsubsidized Loan 2019-2020 Fact Sheet & Loan Request Form

What is a Federal Direct Unsubsidized Loan?

The Federal Direct Unsubsidized Loan is a low-interest loan available for students for postsecondary educational expenses. The current interest rate for the 2019-2020 award year is 6.08% and accrues interest from the date of origination. Most matriculated students are eligible for a Federal Direct Unsubsidized Loan for the 2019-2020 academic year. Once the loan is processed, the funds will be applied towards the student's university bill; any remaining amount will show up as a credit that the student can request in a refund. The student is responsible for repayment of the loan.

Who is eligible to apply? Wheelock Graduate Students are eligible to participate in the Direct Loan Program if they are:

? U.S. citizens, or eligible non-citizens ? Enrolled in a degree-seeking program. ? Registered for at least 6 credit hours per semester which are counted towards the degree seeking

program. ? Maintain satisfactory academic progress according to Federal Student Aid requirements, which is a

minimum 2.0 GPA

How much may I borrow? The maximum Federal Direct Unsubsidized Loan amount for graduate students for the 2019-2020 academic year is $20,500 minus any amount that was requested during the summer term. The maximum aggregate Federal Direct Loan amount is $138,500, including any amount borrowed for undergraduate studies.

Federal Student Aid may not be used for coursework that is not required by a student's degree program.

What is the Origination Fee? Consistent with federal regulations, Federal Direct Unsubsidized Loans have an origination fee that will be deducted from the loan amount; therefore, the amount disbursed to your account will be less than your loan amount you requested. For loans that originate on 10/1/2018 and before 10/1/2019 the rate is 1.062%. For loans that originate on 10/1/2019 and before 10/1/2020 the rate is 1.059%

When do I apply? To make sure your loan is processed by the start of the Fall semester, please submit your application by Monday, July 15, 2019. Students may submit loan applications later on in the semester; however, all federal loan materials must be submitted at least three weeks before the end of the academic period. Federal legislation prohibits Boston University from certifying a federal loan after the academic period has ended.

The loan application process also includes completing federal requirements and registering for classes as loan eligibility cannot be determined until you are registered.

How do I apply?

In addition to the actual Direct Unsubsidized Loan Application Form, please make sure you have completed the following items:

Complete the 2019-2020 Free Application for Federal Student Aid (FAFSA). The FAFSA can be completed online at . Please list "Boston University" using Federal School Code Number 002130 as a recipient of your FAFSA data. Federal Student Aid Programs will process your FAFSA and forward your data to Boston

University. After your FAFSA has been processed, you will receive a Student Aid Report (SAR) from the Department of Education. You should review this report for additional information regarding your aid eligibility, and make any corrections if necessary. Entrance Counseling, which can be completed online at . This only needs to be completed if this is the first time borrowing a loan for this current degree. Master Promissory Note (MPN) must be signed at . This only needs to be completed if this is the first time borrowing a loan for this current degree.

? The borrower can complete the entrance counseling and master promissory note online at using the FSA ID, which are the same credentials that you utilize to submit a FAFSA. If you do not already have a FSA ID, you can create one when logging in to fsaid..

When does repayment begin? The repayment period for the Direct Unsubsidized Loan begins six-months after you graduate, leave school, or drop below half-time enrollment (less than 6 credits a semester). This is your six-month grace period. During this period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date. During this time and any time after the loan disburses you can pay interest by contacting your loan servicer.

When will the loan funds be available? Once your loan has been fully processed on your account, the funds will be applied directly towards your tuition and fees. If you have requested additional funds for living expenses, that remaining amount will show up as a credit that you can request in a refund.

In order to request a refund, please complete the following steps:

Steps to Request a Refund: 1. Log into student link 2. Go to Money Matters folder. 3. Select "Student Account Inquiry." 4. On upper right, select the "Request Refund" link. 5. Follow guidelines so request can be directly deposited into bank account.

Please bear in mind that we will not be able to approve this refund until the first day of classes (September 3, 2019). This is a federal policy.

Please view the official federal aid website for more information on the Direct Unsubsidized Loan program:

2019-2020 DIRECT UNSUBSIDIZED LOAN REQUEST Please PRINT and COMPLETE the Loan Request form below and submit to Wheelock Financial Aid, 2 Silber Way, Room 124, Boston, MA 02215 or email to sedaid@bu.edu

__________________________ Student Name: Last

__________________________ E-mail Address

________________________ First

________________________ Exp. Graduation Date

_____________________ BU Identification Number

Default Certification: If you are in default on any loan received under the Direct Loan, the Federal Family Education Loan or the Federal Perkins Loan Programs (including the National Direct Student Loans), you may not be eligible to receive a Direct Unsubsidized Loan unless you have made satisfactory repayment arrangements with the loan holder to repay the amount owed. Check the box below to certify that you meet this requirement.

I am not in default on a loan received under the programs listed above, or if I am in default, I have made satisfactory arrangements with the loan holder to repay the amount owed.

Prior to June 1, 2018 I was a student at Wheelock College YES NO Loan amount received for the Summer 2019 terms: $ _________________.

Total loan amount requested for 2019-20 academic year to the extent eligible: $ __________________(max $20,500)

This amount is for the entire academic year. Loan requests are equally disbursed among all semesters in which a student is attending and eligible, unless otherwise specified. Please note that there is an origination fee (see the first page of the fact sheet) that will be deducted from the loan amount prior to the loan disbursing to your student account.

Requesting a loan for only one semester due to enrollment changes: YES NO

In order for your loans to be processed, you must provide Wheelock Student Services the following information. If courses in your program are split into two 7-week sessions per semester (i.e. many online programs) please fill out the number of credits in each session. Otherwise, please use the total field.

Number of credits:

Fall 1 2019 ________ Fall 2 2019 _________ Total Fall 2019 _________ Spring 1 2020 ______ Spring 2 2020 ______ Total Spring 2020 _______

Any student aid (i.e., tuition reimbursement, scholarship, etc.) anticipated for 2019-2020 from a source other than this loan:

Source _______________________

Amount $ ________________

Source _______________________

Amount $ ________________

By my signature below I acknowledge that the above information is true and correct. I am aware that this only an application for a loan. I understand that I must notify Wheelock Financial Aid regarding any and all changes to the above information. I understand that changing my enrollment (dropping/changing classes, etc.) may reduce or eliminate my eligibility for a Direct Loan. All charges on my student account not covered by financial aid are my responsibility.

________________________________________________________ Student's Handwritten Signature Required

_________________ Date

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