Federal Direct (Stafford) Loan Program
Direct Loans are low-interest loans for students and parents to help pay for the costs of student's education after high school. The lender is the US Department of Education rather than a bank or other financial institution. Eligibility for this loan program will be determined upon completion of the Free Application for Federal Student Aid (FAFSA). Detailed information can be found at Student Aid on the Web.
Federal Direct Stafford Loans are made in the student's name and can be either subsidized or unsubsidized.
A subsidized loan is awarded on the basis of financial need. Students will not be charged any interest before they begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods. This loan must be repaid. Graduate Students are not eligible for subsidized loans.
An unsubsidized loan is not awarded on the basis of need. Students will be charged interest from the time the loan is disbursed until it is paid in full. Any interest that accumulates will be capitalized-that is, the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount. This will increase the amount that will have to be repaid. Both undergraduate and graduate students are eligible for unsubsidized loans.
Under federal law, students must complete a Loan Entrance Counseling session before funds may be disbursed. It is important that they know and understand their rights and responsibilities as student borrowers. Please contact our office if you have any questions.
Further, you must complete a Master Promissory Note (MPN). In most cases, students will sign only one promissory note that will be used for all loans at Georgia College. Students may complete the MPN electronically at the Direct Loans website. By signing the MPN, students are confirming their understanding that Georgia College may make new loans for the duration of their education (up to 10 years), without having to sign another MPN. Each academic year, GC will disburse loan proceeds to student's accounts as indicated on the on-line Award Letter viewed from the GC Web Student Information System.
Federal Direct Loan (PLUS) Program
Direct Loans are low-interest loans for students and parents to help pay for the costs of student's education after high school. The lender is the US Department of Education rather than a bank or other financial institution. PLUS Loans enable parents or graduate students with good credit histories to borrow monies. These funds are designated to help pay the educational expenses of students enrolled at least half-time (6 semester hours). The yearly limit on a PLUS loan is equal to the student's cost of attendance minus any other financial aid the student is receiving.
In order to receive the PLUS loan, borrowers will need to complete an application and electronic master promissory note (MPN) at the Direct Loan website.
If a parent borrower is unable to secure a PLUS loan due to credit denial, the undergraduate dependent student may be eligible for additional unsubsidized loans to help pay for his or her education. Freshman and Sophomores may request up to an additional $4,000 for the year. Juniors and Seniors may request up to an additional $5,000. Students will need to complete the Stafford Loan Request Form to request any additional funds.
Repayment usually begins within 60 days after the final loan disbursement for the period of enrollment for which you borrowed. Students must have completed the Free Application for Federal Student Aid (FAFSA) for eligibility to be determined. Detailed information may be found at Student Aid on the Web.
Federal Perkins Loans
The Federal Perkins Loan is a low-interest (5 percent) loan for students with exceptional financial need. Georgia College is the lender. The loan is made with government funds with a share contributed by Georgia College, so your payments are through the university.
Eligibility for this loan program will be determined on a first-come first-serve basis upon completion of the Free Application for Federal Student Aid. Detailed information may be found at Student Aid on the Web.
Disbursement of Loan Funds
For all loan funds, students must be enrolled at least half-time (6 or more hours for undergraduate students and 5 or more hours for graduate students) in appropriate degree program courses.
If you have any questions, please contact the Financial Aid Office.