Offices & Directories

Federal Direct Loan

Federal Direct Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. If the student is eligible for a subsidized loan, the government will pay (subsidize) the interest on the loan while the student is enrolled at least half-time during school and during the grace period (six months after the student graduates or falls below half-time attendance). Unsubsidized loans accrue interest during school. The student is not required to but may make payments on the interest portion of the unsubsidized loan. Depending on financial need and class level, students may receive a subsidized or unsubsidized loan, or a combination of both.

For more information please see our publication, A Step-by-Step Guide to Borrowing Through the Federal Direct Loan Program.

Accepting the Federal Direct Loan 

If you choose to accept the Federal Direct Loan in your financial aid award, you must complete the Entrance Counseling and Federal Direct Loan Master Promissory Note (MPN) at studentloans.gov.

*Please Note: When arriving at the Federal Student Aid website, you will be prompted to login with your FSA ID Username and Password. The FSA ID has replaced what was previously the PIN number and you will need to create an FSA ID if you have not done so already.

Entrance Counseling is designed to help you better understand the terms and conditions of the Federal Direct Loan you are borrowing, as well as your rights and responsibilities before you borrow money from the Federal government.

The Federal Direct Loan Master Promissory Note is the document that makes you legally responsible for repaying your Federal Direct Loans.  *Please note: when prompted to select the loan you would like to receive, select "Subsidized/Unsubsidized."

Federal regulations require that both of these documents be completed prior to the disbursal of the Federal Direct Loans. Both of these documents are completed online at studentloans.gov and are good for up to 10 years. Returning students who have previous loans through the Federal Stafford Loan program do not need to complete a new Entrance Counseling or MPN for the Federal Direct Loan program. 

 For more information on the Federal Direct Loan Program, please visit their website.

Exit Counseling, Repayment and Servicing

You will also be required to complete Loan Exit Counseling upon graduating or upon leaving the University of Redlands. This process is crucial and will provide you with important information in regards to repaying your loan.

You will begin repayment on your Direct Loans six months after you graduate, leave the University of Redlands, or drop below half-time. The Federal Direct Loan program offers options to students who need help with repayment of Federal Direct Loans including consolidation, deferment, forbearance, and income-sensitive repayment.

To view information regarding your Federal loan debt, please access the National Student Loan Data System (NSLDS).

Yearly Federal Direct Loan Limits

Year of Study Annual Loan Limits* Total annual limits for Independent students and/or those eligible for additional unsubsidized loans**
First $5500 (maximum $3500 subsidized) $5500 + $4000 additional unsubsidized funding
Second $6500 (maximum $4500 subsidized) $6500 + $4000 additional unsubsidized funding
Third, Fourth, Fifth $7500 (maximum $5500 subsidized) $7500 + $5000 additional unsubsidized funding
Teaching Credential $7500 (maximum $5500 subsidized) $7500 + $5000 additional unsubsidized funding
Graduate Professional (all years) $20500 $20500 unsubsidized funding***
*Annual loan limits include $2000 Unsubsidized Direct Loan available to all loan recipients.
** Additional Unsubsidized loans are available to independent students as well as dependent students whose parent is unable to borrow through the Federal Direct Parent PLUS Loan program due to adverse credit history.
*** Effective 07/01/2012, Graduate students will be eligible for unsubsidized direct loans only


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