Direct Student Loans
Direct Student Loans are low-interest loans for students to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution. Direct Subsidized Loans first disbursed on or after July 1, 2010, have an interest rate of 5.6% while Direct Unsubsidized Loans first disbursed on or after July 1, 2010, have an interest rate of 6.8%. In addition to interest, you pay a loan fee of up to 2.5% of the principal amount of each Direct Subsidized or Direct Unsubsidized Loan that you receive.

Direct Subsidized Loans are loans for students with financial need, as determined by federal regulations. No interest is charged while you are in school at least half-time, during your grace period and during deferment periods.

Direct Unsubsidized Loans are loans for students that are not based on financial need. Interest is charged during all periods.

To apply for a Direct Student Loan the student must have a Free Application for Federal Student Aid on file with the Office of Student Financial Services. Please see the information in Apply for Assistance for more details.

To receive Direct Student Loan funding the student MUST complete these steps:

• Accept loan offer online
• Complete Stafford Loan Entrance Counseling (If you are applying for loans and have not had a direct loan since 1999) and
• Complete a Master Promissory Note online. The Master Promissory Note requires a PIN number to be complete.

Your loan funds will be paid out equally over the terms of enrollment for the academic year. Funds for each term will be credited to your account. Any funds remaining after charges are paid will be paid directly to the student via check, mailed from the Business Office at the end of the third week of the term. Confirmed Class attendance is required for loan disbursements.

Please note:

Student loans require a minimum of 6 hours of enrollment at Athens State University.

Loans are setup to pay over the terms remaining in the academic year.

If the student requests loans in the Fall, the loans are set up for Fall, Spring and Summer.

If the student requests loans in the Spring, the loans are set up for Spring and Summer.

If the student requests loans in the Summer, the loans are set up for Summer.

To make other arrangements for loan disbursements, send an email to finaid@athens.edu.

Exit counseling is required in the term of graduation or when otherwise leaving school.

	Direct Lending
	Managing your student loans
	Entrance Counseling
	Master Promissory Note
	Exit Counseling
	Loan Consolidation
	Loan Repayment Options
	Loan forgiveness programs for teachers and public service
	Assistance with repayment of student loans
	Finding your Financial Aid History
	Helpful Information Regarding Repaying your Student Loans ***Note to students interested in private loan funding*** Please return the completed pages linked below to allow you to apply for loans from private sources. Athens State does not recommend private student loans or lenders. The use of private student loans is at the sole discretion of the student. Private Education Loan Applicant Self-Certification.