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Home > Student Services > Financial Aid > Types of Financial Aid > Federal Direct Loan Program

FEDERAL DIRECT LOAN PROGRAM

Types of Federal Direct Loans
Eligibility
Applying for a Federal Direct Subsidized/Unsubsidized Loan
Applying for a Federal Direct PLUS Loan
Maximum Annual Federal Direct Loan Limits
Repaying Student Loans
Recommended Websites
Helpful Resources
Important Telephone Numbers
Frequently Asked Questions
Contact Us

TYPES OF FEDERAL DIRECT LOANS

The Federal Direct Loan Program offers the following Federal Student and Parent Loans:

Federal Direct Subsidized Loans are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods. The interest rate for Federal Direct Subsidized Loans first disbursed on or after July 1, 2010 and before July 1, 2011 is 4.5%. The interest rate for the Federal Direct Subsidized loans first disbursed on or after July 1, 2011 and before July 1, 2012 is 3.4%. The origination fee is 1.0% with the up-front interest rebate of 0.5%. If you fail to make 12 consecutive payments on time, rebate will be added back to the loan.
 
Federal Direct Unsubsidized Loans are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal) when the loan enters repayment. The interest rate for Federal Direct Unsubsidized Loans first disbursed on or after July 1, 2006 is a fixed rate of 6.8%. The origination fee is 1.0% with the up-front interest rebate of 0.5%. If you fail to make 12 consecutive payments on time, rebate will be added back to the loan.


Learn more about Federal Direct Subsidized/Unsubsidized Loans

Federal Direct PLUS Loans are unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. The school will determine the actual amount you may borrow. PLUS Loan borrowers are subject to a credit check. Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds.

The interest rate for Direct PLUS Loans is a fixed rate of 7.9%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. The origination fee is 4.0% with a 1.5% rebate if the first 12 monthly payments are made on time.

Learn more about Federal Direct PLUS Loans

Federal Direct Consolidation Loans allow borrowers to combine eligible federal student loans into one Direct Consolidation Loan. There may be advantages to consolidating your federal student loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, resulting in a lower monthly payment. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period of time. Contact the Direct Loan Consolidation Center for more information: at 1-800-557-7392, TTY for the hearing-impaired at 1-800-557-7395. The Direct Loans Consolidation website also has an online calculator that you can use to find out how much you'll pay each month if you consolidate.

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ELIGIBILITY

Students must meet the following criteria in addition to the general eligibility requirements to receive Federal Direct Subsidized/Unsubsidized/Parent PLUS Loans:

  1. Complete a Free Application for Federal Student Aid (FAFSA)
  2. Must be a U.S. citizen or eligible non-citizen with a valid Social Security Number (SSN)
  3. Be working toward a degree or certificate in an eligible program
  4. Must be enrolled for and maintain at least half-time enrollment status (6 credits).
  5. Maintain Satisfactory Academic Progress
  6. Must not be in default of a student loan
  7. Financial aid file must be complete

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APPLYING FOR A FEDERAL DIRECT SUBSIDIZED/UNSUBSIDIZED LOAN 

To be considered for a Federal Direct Subsidized/Unsubsidized Loan you must complete the following:
 
PRIOR FEDERAL DIRECT LOAN BORROWERS
  1. Free Application for Federal Student Aid (FAFSA) for 2011-12. (Priority deadline is May 1, 2011). Student and Parent (for a dependent student) must also sign FAFSA electronically using Federal PIN(s). The federal school code for Bergen Community College is 004736. Complete your FAFSA.

  2. Please log in to the Web Advisor and complete the “Financial Aid Loan Application” under Financial Aid*.

  3. BCC Loan Reference Form must be completed and submitted to the financial aid office in L123.

  4. Student Loan Planner and Worksheet must be completed and submitted to the financial aid office in L123
NEW FEDERAL DIRECT LOAN BORROWERS
 
    1. Free Application for Federal Student Aid (FAFSA) for 2011-12. (Priority deadline is May 1, 2011). Student and Parent (for a dependent student) must also sign FAFSA electronically using Federal PIN(s). The federal school code for Bergen Community College is 004736. Complete your FAFSA.

    2. Please log in to the Web Advisor and complete the “Financial Aid Loan Application” under Financial Aid*.

    3. Entrance Counseling for an undergraduate student. Please sign in with your Federal PIN (same PIN is used to sign the FAFSA). 

    4.  Master Promissory Note (MPN) for Subsidized/Unsubsidized Loan. Please sign in with your Federal PIN.

    5. BCC Loan Reference Form must be completed and submitted to the financial aid office in L123.

    6. Student Loan Planner and Worksheet must be completed and submitted to the financial aid office in L123.
    *IMPORTANT INFORMATION
    Please note that the loan amount requested will be processed for the full academic year (Fall 2011 - Spring 2012). Any student with Satisfactory Academic Progress (SAP) Status approved for one semester only, will be eligible for half of the loan amount requested (up to half of the maximum annual Federal Direct Loan entitlement). Please see Maximum Annual Federal Direct Loan Limits.
     
    You must be enrolled for and maintain at least half-time enrollment status (6 credits) and meet all other eligibility criteria to receive a Federal Direct Subsidized/Unsubsidized Loan.  Please see Eligibility.
     
    You may not be eligible for all/part of Federal Direct Subsidized Loan. By submitting the loan request, you authorize the Financial Aid Office to award a Federal Direct Unsubsidized Loan, if you are not eligible for the Federal Direct Subsidized Loan. If you do not want the Federal Direct Unsubsidized Loan, please complete the 2011-12 Loan Change Request Form to decline the loan. The minimum amount that can be processed for a Federal Direct Loan is $300 for the year. For example, if you request $250, we will process $300.
     
    Please note that student loans for the Lyndhurst and Hackensack campus are prorated as per federal guidelines. For maximum eligibility determination, please see your financial aid specialist.
     
    DEADLINE TO APPLY
     
    Fall Only Loan:                                            December 16, 2011
    Fall/Spring OR Spring Only Loan:                  May 5, 2012

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APPLYING FOR A FEDERAL DIRECT PLUS LOAN

To be considered for a Federal Direct PLUS Loan, student/parent must complete the following:

  1. Free Application for Federal Student Aid (FAFSA) for 2011-12. (Priority deadline is May 1, 2011). Student and Parent (for a dependent student) must also sign FAFSA electronically using Federal PIN(s). The federal school code for Bergen Community College is 004736. Complete your FAFSA.

  2. Parent PLUS Loan Application for 2011-12 has to be completed by the parent. Parent will Sign In using his/her PIN. A credit check will be performed by the U.S. Department of Education for the Parent PLUS loan. For your records, please print a copy of the credit check decision.
    3.  
    You must specify the amount you wish to borrow. The loan amount requested will be processed for the full academic year (Fall 2011 - Spring 2012).
     
  3. Master Promissory Note (MPN) for a Parent PLUS Loan must be completed by the parent.

    DEADLINE TO APPLY
     
    Fall Only Loan:                                            December 16, 2011
    Fall/Spring OR Spring Only Loan:                  May 5, 2012

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MAXIMUM ANNUAL FEDERAL DIRECT STUDENT LOAN LIMITS
(Undergraduate)

 
Dependent Students Subsidized Loans Unsubsidized Loans Combined Loan Amount
First Year Undergraduate 
(0 - 23 credits earned) 
 $3,500 $2,000 $5,500
Second Year Undergraduate
(24 or more credits earned)
 $4,500 $2,000 $6,500
Independent Students (and dependent students whose parents were denied a PLUS loan) Subsidized Loans Unsubsidized Loans Combined Loan Amount
First Year Undergraduate
(0 - 23 credits earned)
 $3,500 $6,000 $9,500
Second Year Undergraduate
(24 or more credits earned)
 $4,500 $6,000 $10,500

 

MAXIMUM AGGREGATE FEDERAL DIRECT STUDENT LOAN LIMITS
(Undergraduate) 
  Subsidized Loans Unsubsidized Loans Combined Loan Amount
Dependent Undergraduate Students $23,000 $8,000 $31,000
Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) $23,000 $34,500 $57,500
 

Learn More About Federal Direct Loans:

 
Your Federal Student Loans
Learn the Basics and Manage Your Debt		 Direct Loan Basics for Students


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REPAYING STUDENT LOANS

All Federal Direct Student and Federal Direct PLUS loans must be paid back. Please see Repaying Student Loans.

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RECOMMENDED WEBSITES

The William D. Ford Federal Direct Loan Program (Direct Loan)
Use this Web site to find out more information on the Direct Loan Program, such as repayment options and interactive calculators.

Federal Personal Identification Number (PIN)
This site is for students and parents who want to apply for a Federal Student Aid PIN.

Free Application for Federal Student Aid (FAFSA)
Complete your FAFSA.

Free Help Completing the FAFSA
This Web site explains how to complete the FAFSA and the purpose of FAFSA questions.

Electronic Master Promissory Note (eMPN)
This web site is for completing a Direct Loan Program electronic Master Promissory Note (MPN) for Subsidized, Unsubsidized and Parent PLUS loans.

Entrance/Exit Counseling
You can complete Entrance/Exit Counseling here. Before receiving a student loan, borrowers must complete an entrance counseling session. Prior to graduating or leaving school, Direct Loan borrowers must complete exit counseling. The Direct Loan Exit Counseling will explain your rights and responsibilities as a Direct Loan borrower.

Direct Loan Servicing
Use this Web site to make Direct Loan online payments, view account balance, change billing options, enroll in electronic services and much more.

Direct Loan Consolidation
Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages.

Defaulted Student Loans
Students who have defaulted on Federal Student Loans can contact the U.S. Department of Education's Default Resolution Group to assist you by making debt repayment a simple process.

National Student Loan Data System
NSLDS Student Access provides a centralized view to loan and grant recipients.

New Jersey Higher Education Student Assistance Authority (HESAA)
The Higher Education Student Assistance Authority (HESAA) is a New Jersey authority that provides financial aid to students through grants, scholarships and loans.

Student Aid on the Web
The U.S. Department of Education's site for free information on preparing for and funding education beyond high school.

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HELPFUL RESOURCES

Funding Education Beyond High School

English

Español

College.gov

The College Board

FinAid! The Smart Student Guide to Financial Aid

Financial Aid TV

Student Gateway to the U.S. Government

U.S. Department of Labor Occupational Outlook Handbook

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IMPORTANT TELEPHONE NUMBERS

Federal Student Aid Information Center (FSAIC)
1-800-433-3243 | TTY users can call 1-800-730-8913

Direct Loan Applicant Services
1-800-557-7394

Direct Loan Servicing
1-800-848-0979 | TTY users can call 1-800-848-0983

Direct Loan Consolidation
1-800-557-7392 | TTY users can call 1-800-557-7395

Defaulted Student Loan
1-800-621-3115

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FREQUENTLY ASKED QUESTIONS

Why is the college participating in the William D. Ford Direct Loan Program?
By participating in the Federal Direct Loan Program, the College and the students will be assured of guaranteed access to funding through the Federal Government as we will be processing all loans directly through the U.S. Department of Education (not through individual banks). The Federal Direct Loan Program as currently structured, provides the best benefits available to student and parent borrowers.

How do I apply for a Federal Direct Subsidized/Unsubsidized Loan?
Please see Applying for a Federal Direct Subsidized/Unsubsidized Loan.

Do I have to complete a new Master Promissory Note?
If you received a Federal Direct Subsidized/Unsubsidized Loan for 2010-11, you do not need to complete a new Master Promissory Note. New Students must complete a Master Promissory Note.

Do I have to complete Entrance Loan Counseling?
If you have prior Federal Student Loans and you have completed loan counseling, you are not required to complete Entrance Counseling again. However, if you are a new borrower, you must complete Entrance Counseling.

When should I complete Master Promissory Note and Entrance Counseling?
You should complete Master Promissory Note and Entrance Counseling as soon as possible to avoid any delays getting your student loans.

What are the differences between the Federal Direct Subsidized Loan and the Federal Direct Unsubsidized Loan?

Federal Direct Subsidized Loans are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods. The interest rate for Federal Direct Subsidized Loans first disbursed on or after July 1, 2010 and before July 1, 2011 is 4.5%. The interest rate for the Subsidized loans first disbursed on or after July 1, 2011 and before July 1, 2012 is 3.4%. The origination fee is 1.0% with the up-front interest rebate of 0.5%. If you fail to make 12 consecutive payments on time, rebate will be added back to the loan.

Federal Direct Unsubsidized Loans are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal) when the loan enters repayment. The interest rate for Direct Unsubsidized Stafford Loans first disbursed on or after July 1, 2006 is a fixed rate of 6.8%. The origination fee is 1.0% with the up-front interest rebate of 0.5%. If you fail to make 12 consecutive payments on time, rebate will be added back to the loan.

How will I receive my loans?
Loans are credited to your student account in two equal disbursements in the fall and spring. If you have a credit on your account you will receive a refund check for that amount. You can use the refund to help pay for other educational expenses.

When do I begin repaying my loans?
Students begin repayment of their Federal Direct Subsidized/Unsubsidized Loan(s) six months after they cease to be enrolled at least half time in an eligible program. Repayment Options.

What will be my monthly loan payment?
To get an idea of your monthly loan payments after you graduate, take a look at the Repayment Calculator.

How can I track my loan history?
National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database. You can access information on all of your federal loans and grants on this website.

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CONTACT US

Office of Financial Aid, located at L123 Pitkin Education Center, is looking forward to providing you with a positive experience in processing your federal student aid. If you need further assistance, please contact us at:

Tel: (201) 447 - 7148
Fax: (201) 612 - 9823

Email: financial.aid@bergen.edu

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Bergen Community College - Financial Aid
Pitkin Education Center (Main Building) Room L-123
Phone (201) 447-7148Fax: (201) 612-9823E-Mail: financial.aid@bergen.edu