Federal Loans | Financial Aid | BYU-Idaho

# Federal Loans

## Federal Loans FAQ

How do I get a federal student loan?

What kind of loan can I get?

How do I know what loan I am offered?

How do I get my loans?

Why is the loan amount I got different than what I accepted?

Are there limits to the amount of loans I can get?

How do I manage my student loan?

When do I have to start repaying my loans?

Can I get my loan canceled?

Important things to remember!

## How Do I Get A Federal Student Loan?

Fill out the FAFSA (Free Application for Federal Student Aid) form.

1. If you are not eligible to apply for FAFSA visit Alternative and Private Loans for more options.

## What Kind Of Loan Can I Get?

Direct Subsidized loans:

- For students with financial need.
- The government pays the interest while you are in school and taking at least 6 Program Applicable (PA) credits.)
- This continues until you graduate or go 6 months without being enrolled in at least 6 PA credits.

Direct Unsubsidized loans:

- Interest starts accruing as soon as the loan is disbursed to your student account.

Direct Parent Plus Loans:

- Parents can borrow loan funds to help their students.
- The student must complete the FAFSA
- The parent must complete the Direct PLUS Loan application, which will require a credit check.

## How Do I Know What Loan I am Offered?

Once your FAFSA has been processed, Loan offers are added to the Financial Aid Portal where they can be accepted or denied by clicking on "REVIEW AND UPDATE".

- Choose to accept all, part or none of the loan.
- If your loan is for two semesters, it will disburse in two equal portions.
- Subsidized loans must be accepted before Unsubsidized.
- Loans do not have to be declined - they will only disburse if you have accepted them.
- You can override a denial later by accepting loan amounts.

## How Do I Get My Loans?

- Enroll in at least 6 PA credits 
 - Use the Program Applicability Tool to make certain they are PA.
- Complete Entrance Counseling at studentaid.gov. 
 - Required before you first loan will disburse.
- Sign a Master Promissory Note (MPN) at studentaid.gov. 
 - This is your promise to repay your loans.
 - Required before your first loan will disburse.
 - Expires within a year if a loan has not been disbursed, active up to 10 years.
- ****Accept your loans**** in your Financial Aid Portal at least 3 days before the semester ends.

## How And When Will I Get My Loans?

How:

- Loans go to your student account and automatically pay for school costs.
- Leftover funds can be sent to you through eRefund. Sign up at Refunds.

When:

- ****Accepted before school starts****: loans should be disbursed to your student account during the first week of the semester.
- ****Accepted after the semester starts****: should disburse in 3-5 business days.

It may take a few days for the school to receive your loan funds and process refunds to your bank account.

## Why Is The Loan Amount I Received Different From What I Accepted?

The Department of Education charges a small fee for processing your loan. This is called an origination fee.`

- The fee is taken out of your loan amount before you get the money.
- You'll get less money than you accepted because of this fee.
- You still have to pay back the full amount you accepted.

Find current interest rates and origination fees for all Direct Loans here.

## Are There Limits To The Amount Of Loans I Can Get?

There are limits to how much you can borrow each year and for your lifetime.

| | Maximum Amount of Borrow | |
| --- | --- | --- |
| Year | Dependent* | Independent* |
| 1st Year | $5,500 | $9,500 |
| 2nd Year | $6,500 | $10,500 |
| 3rd & 4th Year | $7,500 | $12,500 |
| Aggregate | $31,000 | $57,500 |

*The total amount includes subsidized and/or unsubsidized loan amounts. 
For more information on loan limits, visit the Department of Education's Student Loan page.

## How Do I Manage My Student Loan?

- Know your loan servicers: 
 - Find them on your account on studentaid.gov.
 - Watch for important information about: 
 - Disbursements, interest bills, enrollment changes, grace periods, repayment obligations.
- Keep your contact info up to date: 
 - Name
 - Address
 - Social Security number
 - School status (withdrawal, transfer, or dropping below 6 credits)
 - Expected graduation date
- Stay in touch with your loan servicer if you have difficulties repaying your loans.
- Talk to your loan servicer about: 
 - Loan Deferment (pausing payments)
 - Loan Forbearance (temporary pause or reduced payments)

Loan Consolidation combines several existing loans into one new loan.

## What If You Are Not Listed As Enrolled?

If your loan servicer doesn't think you are enrolled:

1. They might tell you to start paying back your loan.
2. What to do: 
 1. Print out proof that you're enrolled.
 2. Send this proof to your loan servicer.
3. Remember: talk to your loan servicer, not the financial aid office, to fix this.

## When Do I Have To Start Repaying My Loans?

- You don't have to start repaying until six months after you graduate or take less than 6 credits.
- You can make early payments if you want to reduce interest.

****Important details about the grace period:****

- The grace period starts the day after you stop attending school at least half-time ( 6 credits) and ends the day before the repayment period begins.
- Short breaks (like missing a semester) don't use up the grace period. 
 - If you return to school within six months and take at least 6 PA credits, you still get the full six-month grace period when you graduate or drop below six credits again.
- You should get a Repayment Schedule during your grace period. If you don't, contact your servicer****. Payments start after the six-month grace period ends****.

## What if received loans and now I am going on a mission?

****BYU-Idaho doesn't handle loan arrangements, payments or contact with loan servicers.****

- ****If you are going on a mission****, you must reach out to your loan servicer to plan. 
 - You may qualify for a forbearance or reduced payment.
 - Log in to studentaid.gov to find your loan servicer and to set up repayment.

## Can I Get My Loan Cancelled?

Federal Direct Loans can be canceled if:

1. The student dies.
2. The student becomes totally and permanently disabled.
3. The school closes, and the student cannot finish their program.

Contact your loan servicer if you think you qualify.

## Important Things To Remember:

- ****Complete Exit Counseling**** when you graduate or leave school.
- ****Don't ignore your loans**** - not paying can cause serious problems. 
 - If you're having trouble with payments, contact your loan servicer right away.

*****BYU-Idaho is required to publish the institutional loan default rate for federal loans. The current institutional default rate is 0%.****