Direct Loans are government sponsored low interest loans. You (the student) borrow these loans directly through the Federal Government. You are charged a net fee of .5%. Based on your federal financial eligibility, you may be awarded either a Direct Subsidized Loan or a Direct Unsubsidized Loan. Check your award to see which type of Direct Loan applies to your needs.
Annual Loan Limits
Annual Direct Loan limits for undergraduate students are determined by grade level. Freshmen can borrow up to $3,500, sophomores up to $4,500 and juniors and seniors up to $5,500.
The interest rate for Direct Subsidized Loans disbursed between July 1, 2011 and June 30, 2012 is 3.4%. The Federal government pays the interest accruing on a subsidized Federal loan while the student is enrolled at least half-time in a diploma or degree granting program. The loan enters repayment six months after the student ceases to be enrolled at least half-time, and interest beings to accrue at that point.
| Year |
Interest Rate |
| 2012–2013 |
6.8% |
| Direct Unsubsidized Loans |
The interest rate for Direct Unsubsidized Loans disbursed between July 1, 2011 and June 30, 2012 is 6.8%. Interest accrual under the unsubsidized program begins at disbursement. No payments of interest or principal are due until after the six month grace period. However, you may choose to pay the interest on the Direct Unsubsidized Loan as it accrues. Any unpaid interest will be added to the principal balance of the loan when it enters repayment.
To determine eligibility for a Direct Loan, you must apply for financial aid by submitting the FAFSA and all other required documentation.
You are considered a new borrower if you have never borrowed a Direct Loan while enrolled at the Museum School. All new borrowers must complete the following steps to secure a Direct Loan:
Complete your Entrance Counseling and Master Promissory Note (MPN) at www.studentloans.gov. This involves reading information and answering questions about your rights and responsibilities when borrowing a Direct Loan. The Entrance Counseling must be done prior to the loan being disbursed.
The terms of the loans (maximum interest rate, mandatory fees, and deferment options) are set by the Federal government.
All disbursements generated through The Department of Education are electronic and will appear on your student account.
Federal regulations governing the Direct Loan program stipulates that the school must not hold a loan disbursement for more than three days after receipt without crediting the student's account. Also, the loan cannot be disbursed to the account until all requirements (registration, entrance counseling, eligibility, etc,) are met. Due to this time constraint, the Museum School will receive a pre-disbursement roster, electronically listing all the loans that are ready to be disbursed. The Museum School checks each record to make sure that each student has met all regulatory criteria and the disbursement can be accepted. The Museum School receives disbursements electronically from the DOE via EFT every Wednesday and Thursday throughout the processing cycle.
Once the disbursement is received, and assuming all regulatory criteria continues to be met, your student account is credited and you will be notified of the disbursement.
If the disbursement of your loan results in a credit balance on your student account, you will receive a refund check. NOTE: Museum School grants are not applied to your tuition account until after drop/add period is over, so your loan may not create a credit balance. Once your enrollment has been verified and all aid has been credited to your account, refunds will be processed and sent to the billing address on your account. You may request that your refund be sent to your school address by contacting the Business Office.
An exit interview is required during your final semester if you have borrowed Stafford or Direct Loans. Instructions for completing the online exit interview will be sent in an e-mail from the Financial Aid Office.
The purpose of the exit interview is to inform you of your rights and responsibilities based on the student loans borrowed while in attendance at the Museum School. The information presented during the exit interview is a summary of the information contained on the promissory note(s) you have signed. We suggest that you review your promissory note(s) carefully in order to become familiar with interest rates and repayment terms.
Repayment begins after the grace period is completed. The standard repayment term of the Stafford Loans is 10 years, but the repayment term can be extended depending on the total outstanding principal balance. Contact your loan servicer directly for details. You also have the option to consolidate your Stafford Loans. For more information on this, visit the consolidation page on the Student Loan Web site.
The repayment calculator is available to help students and alumni make informed choices about their student loan repayment options. The calculator shows student loan customers what their monthly payments would be under different repayment plans, including the new Income-Based Repayment Plan (IBR) available beginning July 1, 2009. It also enables student loan customers to compare their alternatives, simulate IBR results under different incomes, estimate the likely time to pay in full, and evaluate the total cost for each option.
Repayment Calculator
You will be billed by The Department of Education. It is important to keep your billing address and contact information up to date with the DOE. Contact the DOE with specific questions about billing cycles, methods of payment or payment amount.
If, at any time, you need information about who your loan lender or servicer is, please do not hesitate to contact the Museum School's Financial Aid Office.
