Loans

What is the difference between a Direct Subsidized and a Direct Unsubsidized Loan? The federal government pays the interest for Direct Subsidized Loans while the student is in college or while the loan is in deferment. Interest begins accruing for Direct Unsubsidized Loans as soon as the loan is taken out.

How much can I borrow? For subsidized loans, the maximum is $3,500 for freshmen, $4,500 for sophomores and $5,500 for juniors and seniors. Undergraduates who are not eligible for Direct Subsidized Loans may borrow an identical amount in a Direct Unsubsidized Loan. Undergraduates may also borrow an additional $2,000 in a Direct Unsubsidized Loan after they have exhausted their initial subsidized/unsubsidized eligibility. Graduate students may borrow a Direct Unsubsidized Loan for up to $20,500. Undergraduates may not borrow subsidized loans in excess of their financial need (the difference between the cost of attending Drew and our estimate of your contribution to your or your child’s education). No student may borrow unsubsidized loans in excess of his/her cost of attendance.

Interest Rates and Fees for Federal Student Loans

Learn more about the most recent interest rates at StudentAid.gov.

When are the payments due? Repayment begins six months after leaving college. Payments are made monthly, and you have 10 years to repay the loan.

Maximum eligibility period to receive Federal Direct Subsidized Loans: There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period.” You can usually find the published length of any program of study in your school’s catalog. For a student enrolled in a four-year bachelor’s degree program, the maximum period for which he/she can receive Direct Subsidized Loans is six years (150% of four years = six years). A student’s maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.

Periods that count against your maximum eligibility period: The periods of time that count against a student’s maximum eligibility period are periods of enrollment (also known as “loan periods”) for which he/she received Direct Subsidized Loans. For example, if a full-time student receives a Direct Subsidized Loan that covers the fall and spring semesters (a full academic year), this will count as one year against the maximum eligibility period. If a student receives a Direct Subsidized Loan for a period of enrollment that is shorter than a full academic year, the period that counts against his/her maximum usage period will generally be reduced accordingly. For example, if a student is a full-time student and receives a Direct Subsidized Loan that covers the fall semester but not the spring semester, this will count as one-half of a year against his/her maximum eligibility period.

Loss of eligibility for additional Direct Subsidized Loans and becoming responsible for paying interest on Direct Subsidized Loans: After a student has received Direct Subsidized Loans for his/her maximum eligibility period, the student is no longer eligible to receive additional Direct Subsidized Loans. However, a student may continue to receive Direct Unsubsidized Loans. In addition, if a student continues to be enrolled in any undergraduate program after he/she has received Direct Subsidized Loans for his/her maximum eligibility period, the Department of Education will no longer (with certain exceptions) pay the interest that accrues on your Direct Subsidized Loans for periods when they normally would have done so.

How do I apply?

• Fill out a FAFSA and indicate you are interested in a Direct Student Loan. Your FAFSA is your loan application.
• Once Drew receives your FAFSA and any other required financial aid forms, your eligibility for Direct loan funds will be determined.
• You will be sent an email indicating that your Financial Aid Awards can be viewed on your TreeHouse account. Log on and accept your awards.
• Once you have accepted your awards, a link to studentloans.gov will appear on your TreeHouse account. This website will provide you with instructions on how to electronically fill out your Master Promissory Note and Entrance Interview. Students only need to fill this form out once in 10 years, so they will not be required to complete it again while at Drew. After you have filled out a Master Promissory Note, in subsequent years, you only need to continue filling out the FAFSA form and accepting your awards on TreeHouse to receive Federal Direct loan funds.
• The Department of Education will transmit your funds electronically to Drew’s Student Accounts Office, which will then credit the funds to your account.
• If you have a credit on your account after receiving loan funds, and are not on any payment plan, the Student Accounts Office can usually mail you a check for the credit on your account 7-10 days after you call them with your request (973-408-3114).

Entrance and Exit Interviews

• What is an Entrance Interview? Entrance Interviews are conducted when a student first borrows money through a Federal Direct Loan program. The purpose of the Entrance Interview is to acquaint the borrower with the terms and conditions of the loan. Entrance Interviews are required before any loan funds will be disbursed to the student’s account. If Drew receives loan funds and the student fails to complete an entrance interview in a timely manner, the loan funds will be returned. CLA, Graduate, and Theological students who are first-time borrowers, regardless of their year in college, need to complete an Entrance Interview. All students are encouraged to fill out an Entrance Interview online at studentloans.gov.
• What is an Exit Interview? Exit Interviews are conducted for students who have borrowed money through a Federal Stafford and/or Federal Direct Loan program (see below) and are ready to graduate or are registered less than half-time. Students need to complete the Exit Interview before graduating. The Exit Interview ensures that student borrowers know who their lenders are, how much they have borrowed, and understand the forbearance process and the terms and conditions of their loans. All students are encouraged to fill out an Exit Interview online at studentloans.gov.
• Maximum Annual Loan Limits: There are limits to the amount of Federal Direct Loans a student can borrow each academic year. The charts below outline these limits. A student’s actual eligibility may be less depending on the cost of attendance and any other financial aid for which they are eligible.
• Loan Problems? Having problems with your student loan — with disbursements, deferment or forbearance? The first thing to do is to contact your lender. If you’ve lost track of your lender, try the National Student Loan Clearinghouse’s free Loan Locator service. If you still can’t resolve your problem, contact the Office of Financial Assistance here at Drew, or your federal servicer. Information about your federal servicer should be included with your loan forms. If you still can’t resolve your problems, your last resource is the Federal Student Aid Ombudsman:

Office of the Ombudsman

Federal Student Aid
U.S. Department of Education
Rm. 3012, ROB #3
7th and D Streets, SW
Washington, D.C. 20202-5144
1-877-557-2575

The Office of the Ombudsman is your last recourse after contacting your lender, federal servicer and Drew’s Office of Financial Assistance.