Puget Sound participates in the Federal Direct Student Loan program. Under this program the federal government serves as the lender. As of July 1, 2014 the interest rate for undergraduate loans is fixed at 4.66% and the interest rate for graduate loans is fixed at 6.21% .
There are two types of Federal Direct loans.
Your Financial Aid Award Notice specifies the amount of your Direct Loan eligibility. You may reduce or decline the offered amount by sending an email message to firstname.lastname@example.org.
First Time Borrowers
If you are a first-time borrower, you must complete an online loan entrance counseling session and sign a Master Promissory Note (MPN) before you can receive your loan funds.
The annual loan amount you borrow for the year is divided equally between fall semester and spring semester. A fee of 1.073% will be subtracted from each disbursement to cover the loan origination fee. Direct loans are received by the university through Electronic Fund Transfer (EFT) and are credited to your student account automatically. We will notify you when funds are received and credited to your student account.
Repayment begins six months after graduation or when dropping below half-time enrollment. You can expect to hear from your lender/lenders about 30-45 days before the first payment is due. If you don't hear from your lender, it is your responsibility to contact them.
Congress passed the Budget Control Act of 2011 in August of this year. The Act includes changes to several aid programs, including the Direct Loan program for graduate students. Effective July 1, 2012, graduate students will be limited to borrowing through the Unsubsidized Direct Loan program, and the Subsidized Direct Loan program will no longer be available. Annual and aggregate loan limits remain unchanged. Under the Unsubsidized Direct program, loans begin accruing interest as soon as the funds are disbursed. Interest may be paid on a monthly basis or capitalized so that payments do not need to be made while enrolled. This change effects loans disbursed on or after July 1, 2012. Any previous Subsidized Direct loan held by the student will not be affected.
If you have questions about what loans you have, you can review your federal loan history through the National Student Loan Data System (NSLDS).
You will need your Federal Student Aid PIN. If you have forgotten your PIN you can have it reissued at the Federal Student Aid PIN website.