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Harkins Hall, Room 403
One Cunningham Square
Providence, RI 02918
Phone: (401) 865-2286
Fax: (401) 865-1186
finaid@providence.edu

 

​William D. Ford Federal Direct Stafford Loan

Commonly referred to as the Direct Stafford Loan Program, the U.S. Department of Education has created this loan program specifically for students who are accepted in a degree granting program, attending at least half-time (as defined by their degree program) at a postsecondary institution and meeting satisfactory academic progress standards as defined by the College.  Providence College is responsible for determining eligibility for this program each year based on the results of your Free Application for Federal Student Aid (FAFSA) and current federal regulations.  In addition, the College also collects and processes all paperwork on the government’s behalf for this program.

This program is an entitlement program offered by the U.S. Department of Education.  Therefore, as long as you have not previously defaulted on a Direct Stafford Loan or have exceeded the maximum loan limits (see below) then you are entitled to participate in this program regardless of your level of need as defined by the FAFSA and as long as the criteria defined above are also met.  Keep in mind that Direct Stafford Loans are taken out in the student's name and there is no credit check required to qualify for this program. 

Loan funds will be credited to your bill each semester minus the origination fee set by the U.S. Department of Education each fiscal year provided all appropriate online forms have been completed.  Subsidized Direct Stafford Loans are need-based and do not accrue interest while the student is enrolled at least half-time. Interest will accrue for students borrowing unsubsidized Direct Stafford Loans which can be paid on a quarterly basis while the student is in school or opt to have the interest capitalize (added to the principal) and payable when they graduate or drop below half-time.  

Terms & Conditions

For the 2014-2015 academic year the Direct Stafford Loan Program has a fixed 4.66% interest rate on undergraduate subsidized and unsubsidized loans.  Graduate loans are now all unsubsidized and have a fixed 6.21% interest rate.  Both loans have an 1.073% origination fee that reduces the gross amount that appears on your billing statement. Repayment for Direct Stafford Loans begins 6 months after a student graduates or ceases attending school at least half-time.  The standard repayment term is 10 years, although one can get access to alternate repayment terms (extended, graduated and income contingent repayment) by consolidating the loans.  However, if you consolidate your loans, you could lose your grace period.  As your graduation date approaches you will be contacted by the lenders who hold your loan to complete exit counseling and make payment arrangements.

Required Online Forms

If you have never borrowed through the Direct Stafford Loan Program at Providence College you must complete a Master Promissory Note (MPN) and Entrance Counseling (EC).  Both the MPN and EC only need to be completed once during your attendance at Providence College.

In order to complete both of these requirements you will need your Federal Personal Identification Number (PIN).  A PIN is personalized 4 digit number issued only to you by the U.S. Department of Education.  If you applied for a PIN when you filed your FAFSA, you can use the same PIN to electronically sign your MPN and EC.  If you forgot your pin or would like to apply for one you can visit  www.pin.ed.gov .

To complete your Direct Loan MPN online

www.studentloans.gov

To complete your Direct Loan EC online

www.studentloans.gov

If you have been previously awarded and borrowed a Federal Direct Stafford subsidized/unsubsidized loan at Providence College you are not required to complete another EC or a MPN.  The loan amount that appears in your CyberFriar Account will be automatically applied to your billing statement at the end of the add/drop period in each semester.

If you wish to decline all or part of any loan you have been offered use the Award Letter Response Form in order to communicate those changes to us . 

Maximum Loan Limits

The maximum loan amount you can borrow is tied to how many credits you have satisfactorily completed at Providence College and any accepted transfer credits  if you are an undergraduate dependent, undergraduate independent or graduate student.  The annual borrowing limits for students are as follows:

 

Credits Completed
Undergrad Dependent
Undergrad Independent
Graduate
 
Subsidized
Unsubsidized
Subsidized
Unsubsidized
Unsubsidized
0 – 27
$3,500
$2,000
$3,500
$6,000
$20,500
28 – 55
$4,500
$2,000
$4,500
$6,000
$20,500
56 – 85
$5,500
$2,000
$5,500
$7,000
N/A
86 -116
$5,500
$2,000
$5,500
$7,000
N/A
Teaching Certification
$5,500
N/A
$5,500
$7,000
N/A

 

 

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To determine how much you are eligible to borrow choose the category that best fits your status (i.e. Undergraduate Dependent or Independent, Graduate).  Choose the row that reflects how many credits you have completed.  A student can borrow up to the total of the two columns (subsidized + unsubsidized).  For example, an Undergraduate Dependent student with 20 credits can borrow a total of $5,500 no more than $3,500 of which may be subsidized.

Independent students and students whose parents have been turned down for a parent PLUS loan can borrow a total of $6,000 in an unsubsidized Direct Loan the first two years and $7,000 the remaining years.  Parents MUST apply and get turned down each year the student wishes to take advantage for the additional unsubsidized loan.

Cumulatively, an undergraduate dependent can borrow up to $31,000 (no more than $23,000 of which can be subsidized), undergraduate independent or students whose parents have been turned down for a parent PLUS loan can borrow up to $57,500 (no more than $23,000 can be subsidized) and a graduate student can borrow up to $138,500 (no more than $65,500 can be subsidized) during their pursuits of a postsecondary education.

Students are able to monitor and manage their own aggregate borrowing by logging into the following websites using their federal PIN number at www.nslds.ed.gov or https://www.myedaccount.com/.  Direct Loans can also be reach at 1-800-557-7394.  

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