Federal Direct Loans

Loan Limits
How to Apply
Loan Counseling
Loan Repayment

Federal Direct Loans:

• Have a low interest rate
• Have a six-month grace period (a period of time when no payments are due) after enrollment ceases or drops below half-time status
• The amount a student may borrow is determined by the student's grade level in school, based on the number of credit hours earned,  and by limits set by the Federal Department of Education.  
• Students must complete a Free Application for Federal Student Aid (FAFSA) to be considered for Federal Direct Loans.  
• More information about Federal Direct Loans can be found here.

There are two types of Federal Direct Loans:

Dependent undergraduate students may borrow up to $31,000, of which no more than $23,000 may be subsidized. Independent undergraduate students may borrow up to $57,500, of which no more than $23,000 may be subsidized.

Subsidized and Unsubsizied Annual Loan Limits

*This category also includes those undergraduates whose parents are unable to borrow a PLUS.

Lifetime Loan Limits

Dependent undergraduate students may borrow up to $31,000, of which no more than $23,000 may be subsidized.

Independent undergraduate students may borrow up to $57,500, of which no more than $23,000 may be subsidized.

To be eligible for a Federal Direct loan students must:

• submit the FAFSA for each academic year she wishes to obtain a Federal Direct loan.
• be a U.S. citizen or an eligible non-citizen.
• be enrolled at least half-time.
• have no prior outstanding student loan in default and not owe a repayment on any federal aid.
• complete a Master Promissory Note (MPN).
• complete entrance counseling prior to receiving the first Federal Direct loan at Saint Mary's College.
• meet Saint Mary's Financial Aid Standards of Satisfactory Academic Progress.

To apply for a 2024-25 Federal Direct Loan:

If you are a new borrower at Saint Mary's College, please complete all steps listed below.  This includes transfer students who may have borrowed Federal Direct loan funds or Stafford loan funds at another institution.

If you have previously borrowed Federal Direct loan funds at Saint Mary's College, simply complete the first step below.

1. Log into the portal, click on the link for Award for Aid Year on the left of the page and accept the loans that were offered as part of the financial aid award letter.
2. Complete the federally required Entrance Counseling. 
   • Click the "Sign In" button.  You will need your Federal Student Aid ID (FSA ID) to complete this.
   • Once you are signed in, select "Complete Counseling".
   • When you are asked to select a state and a school, select "Indiana" under "School State" and "ST MARYS COLLEGE" under School Name. 
   • Read the information presented to you.  You will be quizzed on the information and must successfully answer 12 of 15 questions to pass the entrance counseling quiz.  If you fail the quiz three consecutive times, you will need to wait 48 hours and try again.  Some browsers may allow you to clear your temporary internet files/cookies and try again without waiting 48 hours.
3. Complete your Master Promissory Note (MPN).
   • Click on "my account" and log in.  Then select "Complete Master Promissory Note" and then select "Subsidized/Unsubsidized" as the loan type.
   • Continue following the steps as directed.  When you are asked to select a state and a school, select "Indiana" under "School State" and "ST MARYS COLLEGE" under School Name.

Loan Repayment

The federal government contrac ts with a variety of companies and organizations to manage the collection of federal student loans.  These organizations are referred to as loan servicers.  While a list of the current federal loan servicers is below, you can learn who is handling the repayment of your loans by logging into the National Student Loan Data System.

Federal Direct Subsidized and Unsubsidized Loans have a number of repayment plans ranging from 10 to 25 years. Detailed information about each repayment plans can be found here. The following chart demonstrates how the various repayment plans can result in different monthly payment amounts.

** Some loans may not qualify for this repayment plan.