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Federal Direct Student Loans are used by many students to help finance their education.
Loan Origination Fee
There is a 1% loan fee on all Direct Loans disbursed after
July 1, 2011. For the 2011-2012 academic year, there is a 5% up-front rebate, which reduces the total fee to .5%. Beginning with the 2012-2013 academic year, the up-front fee rebate will no longer be available.
Annual Borrowing Limits
The annual maximum loan amount for graduate students is $20,500. Students must maintain Satisfactory Academic Progress in order to maintain their eligibility to borrow.
Aggregate (life-time) Borrowing Limits
Students have a life-time limit of $138,500 in Stafford Loans. This includes both undergraduate and graduate borrowing.
Interest Rates
The interest rates for Direct Student Loans is fixed at 6.8%. Interest on the unsubsidized loan accrues from the time the loan is disbursed.
Disbursement Requirements
First-Time Borrowers at Smith College
On or after you receive your finalized award letter beginning May 1, go to www.Studentloans.gov and complete:
Entrance Counseling (this provides information about your rights and responsibilities as a borrower) and
• Master Promissory Note (not required if previously completed under the Direct Loan Program)
Smith will be notified electronically after you have completed these requirements.
Disbursement
Loan proceeds are applied to the student's account in two disbursements, one each semester.
Refund Information
• Credit balances are automatically refunded to graduate students. Refunds are processed on a weekly basis beginning one week before the start of classes in the fall and spring semesters.
• We recommend setting up direct deposit with the Payroll Office for faster, easier access to refunds.
• Refunds should be expended with auction, as they are meant to cover expenses over an extended period.
• If financial aid or charges are revised due to course changes or withdrawal, all or part of a refund may be due back.
REFUND WARNING: A loan will not pay out of any requirements are owed. And it can take up to three weeks from the time they are satisfied for them to be received and coded to accounts for the loan to disburse and, if the loan overpays an account, for the surplus to be refunded, as these are all weekly processes. Therefore, if you are relying on a refund from this loan, be sure to satisfy any owed requirements three weeks before funds are needed.
Repayment
Repayment of the loan begins six months after the student leaves Smith College, graduates, or ceases to be enrolled at least half-time. The six-month timeframe is considered the grace period.
You can estimate your monthly loan repayments using the Federal Loan Calculator: http://www.direct.ed.gov/calc.html.
Exit Counseling
Students who have borrowed through the Federal Direct Loan programs are required to complete exit counseling if they are no longer enrolled at least half-time. Smith College will be notified electronically when this requirement has been completed.
Visit the National Student Loan Data System web site.
For loan related questions, please contact us at st_loans@smith.edu
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