Federal Direct Loans

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Loans are a form of self help aid and must be repaid.

All Kent State University students who complete the FAFSA will be awarded the Federal Direct Loan based on the grade level. The Subsidized Direct Loan is awarded to students who demonstrate financial need. The Unsubsidized Direct Loan is awarded to students who do not demonstrate financial need. Interest will accrue on unsubsidized loans and will capitalize unless you choose to pay the interest while in school.

In order for the loan funds to apply to your student account, you must go Online to accept the Direct Loan award. Access your FlashLine account.

  • Click on "Financial Aid Awards" link at the top of the Student / Finances page. Select Aid Year and submit. Under the Accept Award Offer tab, you have the option to reduce, decline, or accept your Direct Loan award.
  • Once you submit your option and would like to change, you must contact the Student Financial Aid Office.

Federal direct Stafford loan

  • Interest start accruing on date of disbursement at 6.21%
  • Loan Fee 1.073%
  • Yearly Maximums:
    • 12 month term - $47,167
    • 11 month term - $44,944
    • 10 month term - $42,722
  • Total aggregate loan amount is $224,000
  • 6 month grace period
  • Standard repayment 10 years - can extend with alternative repayment plans (see Loan Repayment)

You must complete a Master Promissory Note and complete graduate loan entrance counseling if this is your first Direct Unsubsidized Stafford Loan at www.studentloans.gov. 


FEDERAL DIRECT PLUS loan

  • Interest starts accuing on date of disbursement at 7.21%
  • Loan Fee 4.292%
  • Cost of attendance less other Financial Aid
  • 6 month grace period
  • Standard repayment 10 years - can extend with alternative repayment plans (see Loan Repayment)

You must complete a Master Promissory Note and complete graduate loan entrance counseling if this is your first Direct Unsubsidized Stafford Loan at www.studentloans.gov. 

The Federal Direct Loan is credit-based. Kent State University will send the information to the Department of Education, you do not need to complete an application on-line; however, you will need to complete the Federal Direct Graduate PLUS Lan Request form that allows the school to have your credit reviewed by the Department of Education.

If your loan is initially denied, you will be notified by Direct Loans. You will have an option to appeal the credit decision by contacting the Department of Education customer service between 8:00 AM and 8:00 PM Easter Time, Monday - Friday at 800-557-7394; you also have the option of obtaining an Endorser (co-signer). 


DIRECT PLUS LOAN CREDIT CRITERIA

Does my debt to income ratio, credit score, or employment status count against me?

These factors are not taken into account when your credit history is reviewed. A lack of credit is not considered adverse credit.

What is considered "Adverse Credit"?

Adverse Credit Conditions include bur are not limited to:

  • Bankruptcy (Chapters 7, 11, or 12 within the past 5 years)

Note: Department Policy does not consider Chapter 13 bankruptcy as adverse credit

  • Voluntary surrender within the last 5 years
  • Repossession within the past 5 years
  • Foreclosure proceedings started
  • Foreclosure within the last 5 years
  • Deed in lieu of foreclosure.
  • Accounts currently 90 days or more delinquent
  • Collection accounts (open or closed) that have been placed in collection during the two years preceding the date of the credit report with a balance greater than zero
  • Charge offs /write off accounts (open or closed) that have been charged off during the two years preceding the date of the credit report with a balance greater than zero
  • Wage garnishment within the last 5 years
  • Defaulted loan that has been claim paid
  • Lease or contract terminated by default
  • County/State/Federal tax lien, within the past 5 years.

What are my options when I am declined?

You may either obtain an endorser, or you may choose to document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history. Once either of these courses of action have been completed you are also required to complete PLUS Counseling on our secure StudentLoans.gov Web site..

Contact the school's financial aid office as soon as possible to let them know whether you plan to pursue a Direct PLUS Loan by obtaining an endorser or submitting documentation of extenuating circumstances.

If you decide not the pursue a Direct PLUS Loan, the school's financial aid administrator may be able to provide information concerning other options to assist you with paying for you or the student's education.

Obtaining an Endorser

An endorser is someone who does not have an adverse credit history and agrees to repay the loan if you do not repay it. If you are a parent borrower, the endorser may not be the student on whose behalf you are requesting the Direct PLUS Loan.

If you choose to obtain an endorser, the endorser may complete the endorser addendum on our secure StudentLoans.gov Web site. To complete the endorser addendum online, the endorser will need the borrower's last name and either the endorser code (if you completed a Direct PLUS Loan Request) OR the Loan/Award Identification Number and a Federal Student Aid (FSA) PIN. If you completed a Direct PLUS Loan Request, the endorser code may be found in the confirmation email you received or may be found by logging in to the StudentLoans.gov Web site and selecting "Direct PLUS Loan Requests" located on the left navigation bar. If you did not complete a Direct PLUS Loan Request, the Loan/Award Identification Number may be obtained from the school. If the endorser does not have an FSA PIN, they may obtain one by visiting the FSA PIN Web site at www.pin.ed.gov.

After you have obtained an endorser you are also required to complete PLUS Counseling on our secure StudentLoans.gov Web site.

Document Extenuating Circumstances

Document to the satisfaction of the U.S. Department of Education that:

  • The information causing the adverse credit decision is incorrect or has been corrected

OR

  • There are extenuating circumstances relating to the adverse credit history. (Note: Endorsers are not eligible for this option.)

After you document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history. You are also required to complete PLUS Counseling on our secure StudentLoans.gov Web site.

If I am declined and decide to document extenuating circumstances, how long will this process take?

After you submit your request to document extenuating circumstances, Applicant Services will contact you. Once all documentation has been received, a determination will be made and provided to you within 7-10 business days.

How do I begin the process of documenting extenuating circumstances?

If you believe there are extenuating circumstances related to the adverse credit information that should be considered in evaluating your eligibility for a Direct PLUS Loan, you may begin the process in one of two ways:

  1. Log in to StudentLoans.gov and select "Document Extenuating Circumstances" on the left navigation bar. Follow directions. Applicant Services will contact you with further instructions.
  2. Contact Applicant Services between 8:00 AM to 8:00 PM, Eastern Time, Monday through Friday. Applicant Services may be reached toll-free, at 1-800-557-7394.
  3. Contact Applicant Services between 8:00 AM to 8:00 PM, Eastern Time, Monday through Friday via Live Chat on the Contact Us page.

PLUS counseling

What is PLUS Counseling?

PLUS Counseling will help graduate/professional students and parents of eligible dependent undergraduate students understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.

Who must complete PLUS counseling?

PLUS Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have:

  • Obtained an approved endorser

OR

  • documented to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history.

PLUS Counseling can be completed voluntarily at any time. If PLUS Counseling is completed voluntarily and you are determined to have an adverse credit history by the U.S. Department of Education within 30 days of PLUS Counseling completion, your PLUS Counseling requirement will be considered to be fulfilled.

How do I access PLUS Counseling?

There are multiple ways to access PLUS Counseling including the following:

  1. Log in to StudentLoans.gov using your Federal Student Aid (FSA) ID. Use of another person's FSA ID constitutes fraud. Use only your own FSA ID information.
  • Select "Complete Counseling" on the left hand navigation bar
  • Select "PLUS Counseling" under "Choose Counseling Type"

If you log in, you will be able to:

  • See your federal student loan information available in the National Student Loan Data System (NSLDS)
  • View proof of counseling completion

2.  Select "Getting Loans" from the top navigation bar on the StudentLoans.gov home page and then "Counseling Demo." Select "PLUS Counseling" under "Choose Counseling Type"

  • You must log in to officially complete the counseling session. (option 1 above)
  • The "Counseling Demo" option is informational and allows school administrators to see counseling content without logging in.

How do I complete PLUS Counseling?

To complete PLUS Counseling for PLUS Loans under the Direct Loan Program:

  • Log into this Web site using your Federal Student Aid (FSA) ID. Use of another person's FSA ID constitutes fraud. Use only your own FSA ID information.
  • Select "Complete Counseling" found in the left navigation bar
  • Select "PLUS Counseling" under "Choose Counseling Type"

Will I be able to save my PLUS Counseling session and return at a later time to complete it?

No, your progress will not be saved if you navigate away from your PLUS Counseling session or log out of the StudentLoans.gov Web site.