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William D. Ford Federal Direct Loan Program
Bowie State University participates in the William D. Ford Federal Direct Loan Program (usually referred to as the Direct Loan Program). Bowie State University's status as a direct lending institution precludes the University from processing any loans from private banks or other lending institutions. The U.S. Department of Education is the lender and will pay the student through the school.
Direct Subsidized Loan Program
A Direct Subsidized Loan is awarded on the basis of financial need. Students are not charged interest on Direct Subsidized Loans during certain periods, such as when they are enrolled at least half time and during grace and deferment periods. The federal government pays the interest for subsidized loans. The interest rate is variable, but will never exceed 8.25 percent.
Direct Unsubsidized Loan Program
A Direct Unsubsidized Loan is not awarded on the basis of need. Interest will be charged from the time the loan is disbursed until it is paid in full. The interest rate is variable, but will never exceed 8.25 percent.
Direct PLUS Loan Program
The Direct PLUS Loan Program enables parents with good credit histories to borrow funds to pay the educational expenses of their dependent children. The PLUS Loan is not need-based, but the award in combination with other financial aid cannot exceed the cost of attendance. The PLUS Loan has a variable interest rate, but will never exceed 9 percent. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Dependent students must have used their full eligibility for a Direct Subsidized or Unsubsidized Loan before being considered for a PLUS Loan. If a parent is denied a PLUS Loan, the student may be eligible to receive additional unsubsidized funds.
Master Promissory Note (MPN)
The Master Promissory Note (MPN) is a promissory note that can be used to make one or more loans for one or more academic years for up to 10 years. Bowie State University is authorized to make multiple disbursements under the same MPN for more than one academic year. Therefore students will only sign one MPN. It will be used for all loans over multiple academic years at Bowie State University. This feature is only available for the Direct Subsidized and Direct Unsubsidized Loans.
Electronic Master Promissory Notes (MPN)
Bowie State University requires students to complete the Electronic Master Promissory Note that allows students to complete the MPN over the web as an alternative to a paper MPN. The Web site address is http://dlenote.ed.gov. The process for completing the electronic MPN is simple. Students will need their US Department of Education issued PIN. Visit http://pin.ed.gov to register for a PIN.
Entrance and Exit Counseling
Learn the facts...www.dlssonline.com/
Manage your educational expenses…
Before receiving a student loan, borrowers must complete an entrance counseling session. This quick and easy interactive counseling session provides useful tips and tools to help you develop a budget for managing your educational expenses and helps you to understand your loan responsibilities.
This online entrance counseling session will take about 20-30 minutes to complete.
Exit Counseling
Understand your rights and responsibilities…
Prior to graduating or leaving college, borrowers are required to complete an exit counseling session. This online exit counseling session has been created to make sure that you understand your rights and responsibilities as a Direct Loan borrower.
This online exit counseling session will take about 30-40 minutes to complete.
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