Federal Direct Stafford Loan Program

Federal Direct Stafford Loans are made in the student's name.  Graduate students are only eligible to participate in the Unsubsidized Stafford Loan Program.

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.

By completing the Free Application for Federal Student Aid (FAFSA), students will be considered for the Federal Direct Stafford Loan. Our office will determine students’ eligibility and award the maximum amount students’ are eligible to receive. After applications are processed, students will receive an email notification with instructions to view awards online. Having eligibility determined for a Federal Direct Stafford Loan does not commit students to accepting the loan or the amount (students may borrow less than full eligibility).

Students should pay close attention to any additional requirements including Entrance Counseling and Promissory Notes, which are available on line at www.studentloans.gov.

Under federal law, students must complete a Loan Entrance Counseling session before funds may be disbursed. It is important that students know and understand their rights and responsibilities as a student borrower. Students should contact our office if they have any questions.

Further, students 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. 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 students’ accounts as indicated on the on-line Award Letter viewed from the GC Web Student Information System. Students are also agreeing to repay all loans made under the terms of the MPN. Therefore, it is very important to completely read and understand all of the information on the MPN before signing it.

Federal Direct Unsubsidized Stafford Loan interest rates are fixed at 6.8%. There are also loan fees up to 1.051% (Origination and Default fees) that may be deducted proportionately from each delivery of loan proceeds. This money is passed on to the federal government to help reduce the government’s cost of supporting these low interest loans. Repayment must begin no later than six months following graduation or termination of at least half-time enrollment.

Loan Limits Yearly and Aggregate

Graduate Students                                       

Aggregate limits for graduate students are inclusive of all undergraduate loans received.

Direct Grad PLUS

Direct Grad PLUS Loans enable graduate students with good credit histories to borrow monies after they have exhausted all of their Stafford Loan eligibility. These funds are designated to help pay the educational expenses of the graduate student enrolled at least half-time (5 semester hours). The yearly limit on a Grad PLUS loan is equal to the student's Cost of Attendance (COA) minus any other financial aid the student is receiving. Effective July 1, 2010, Federal Direct Grad PLUS loan interest rates are fixed at 7.9%. There are also loan fees up to 4.204% (Origination and Default fees) that may be deducted proportionately from each delivery of loan proceeds. This money is passed on to the federal government to help reduce the government’s cost of supporting these low interest loans. Repayment usually begins within 60 days after the final loan disbursement for the period of enrollment for which the funds are borrowed. Application for the Grad PLUS loan is accessed electronically at www.studentloans.gov. Students must have completed the Free Application for Federal Student Aid (FAFSA) for eligibility to be determined.

Federal Direct Grad PLUS Loans will be disbursed after a Master Promissory Note has been electronically signed with the Direct Loan Servicing Center. The PLUS MPN has a multi-year feature. This multi-year feature allows the student borrower to only have to sign one promissory note for the Grad PLUS loans that can be used for up to 10 years. However, a valid and successful credit check is required every year for additional Grad PLUS loans.

Funds will first be used toward the student's bill at the Business Office. Any funds remaining can be used to purchase books at the GC Box Office Bookstore approximately three days prior to the first day of classes through the end of the drop/add period. Any remaining funds will be disbursed in a check or direct deposit made payable to student approximately seven days after the end of the drop/add period each semester.