Changes to the Federal Student Loan Program

New Federal student aid regulations will bring significant changes to the Federal Direct Loan program for the 2012-2013 award year. Below is a brief summary of provisions that go into effect July 1, 2012:

• Federal Subsidized Direct Loans for graduate students are eliminated. Graduate students will no longer be eligible for Federal Subsidized Direct Loans for aid periods after July 1, 2012. The Summer 2012 loan period begins prior to July 1st so subsidized loans will be available for graduate students. The annual unsubsidized loan limit for graduate students will remain at $20,500 for the 2012-2013 award year.
• For all students, Direct Loan Repayment Incentives are eliminated. As a result, origination fees for all Federal Stafford Direct loans will increase from .5% to 1.0% and for all Federal PLUS loans origination fees will increase from 2.5% to 4.0% for loans disbursed on or after July 1, 2012.  The interest rate reduction incentive for borrowers who agree to make loan payments via automatic debit is NOT being eliminated.
• The interest subsidy offered during the six-month grace period on subsidized loans will be eliminated for new loans made between July 1, 2012 and July 1, 2014. Loan repayment still begins six months after you are no longer enrolled at least half-time, but interest that accrues during those six months will no longer be subsidized by the federal government. Students will be responsible for the interest during the grace period.
• Interest rates on Federal Subsidized Direct Loans for undergraduate students will increase from the current fixed rate of 3.4% to a new fixed rate of 6.8% for all new loans disbursed on or after July 1, 2012.

William D. Ford Federal Direct Loan Program

Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education.  The lender is the U.S. Department of Education.  There are three kinds of Federal Direct loans available at Florida Gulf Coast University.

• Federal Direct Subsidized Stafford Loans
• Federal Direct Unsubsidized Stafford Loans
• Federal Direct PLUS Loans

Student Loan Practices Code of Conduct

Florida Gulf Coast University has adopted a Code of Conduct for financial aid practices related to student loans.  The Code of Conduct can be viewed at .

Entrance & Exit Counseling

Before receiving a Direct Stafford Loan, borrowers must complete an entrance counseling session.  This quick and easy interactive counseling session provides useful tips and tools to help you develop a budget for managing your educational expenses and helps you to understand your loan responsibilities.  

Students that have graduated, completely withdrawn, non-returning or dropped below half-time status are required to complete the online loan exit counseling.  This federal requirement informs students of their repayment obligations, different repayment options and consequences of default.

Student will be notified via email or by letter within 30 days of the date the university determines that the student’s enrollment status has changed to meet one of the situations as noted above.

If the student does not complete the exit counseling within 14 days of receiving the notification, then a second email will be sent with exit counseling materials.

A hold could also be placed that may delay the receipt of transcripts and/or the student’s diploma.

Complete Entrance Counseling Here

Complete Exit Counseling Here

Master Promissory Note

To take out a Direct Loan for the first time, you must complete a Master Promissory Note (MPN). You can complete the MPN online at the StudentLoans.gov website. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). 

 Federal Direct Stafford Loans

 Federal Direct Subsidized Stafford Loans are awarded to students based on demonstrated financial need.  The interest on Subsidized Stafford loans is paid by the federal government while the student is in school, during the grace period and during authorized deferment.

 Federal Direct Unsubsidized Stafford Loans are not awarded on the basis of need.  For Unsubsidized Stafford loans, students are responsible for all of the interest that accrues while the student is enrolled in school.

The U.S. Department of Education is the lender for all Federal Direct Stafford Loans at Florida Gulf Coast University.

How to Apply

You must complete the steps below before receiving a Federal Direct Stafford Loan:

• Complete a Free Application for Federal Student Aid (FAFSA) http://www.fafsa.ed.gov/.
• If eligible based on your FAFSA, a loan may be offered to you via your Gulfline account.
• You must Accept, Decline or Reduce your loan through Gulfline.
• If you are a new borrower, you must complete the online Entrance Interview at https://studentloans.gov/. Please check Gulfline to see if an Entrance Interview is listed under your "unsatisfied requirements."
• If you are a new borrower a MPN (Master Promissory Note) will need to be e-signed. You may sign your MPN online at https://studentloans.gov/.

Interest Rates and Fees 2011-2012

Interest Rates and Fees 2012-2013

*The rebate is an up-front rebate that requires the borrower, at the time of repayment, to make the first 12 payments on time. Failure to do so will result in the initial rebated amount to be added back to the balance of the loan.

Borrowing Limits for Federal Stafford and Unsubsidized Stafford Loans

The table below shows the maximum amount a student can borrow each year, depending on the student's dependency status, as determined by information on the FAFSA, and the student's academic level.

Aggregate Loan Limits

Dependent Undergraduate:  $31,000 (Maximum $23,000 in Subsidized)

Independent Undergraduate:  $57,500 (Maximum $23,000 in Subsidized) 

Federal Direct PLUS Loans

Federal Direct PLUS Loans are student loans available to parents of eligible dependant undergraduate students.  PLUS loans are also available to eligible graduate students.  PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Parent PLUS loan borrowers cannot have adverse credit history (a credit check will be done).  Borrowers must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. The borrower's child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program.

How to apply for a PLUS Loan PLUS Loan applications can be completed online at http://studentloans.gov/ for both Parent PLUS Loans and Graduate PLUS Loans. In addition the student must also complete a FAFSA in order to receive a Parent PLUS or Graduate PLUS loan. A Department of Education PIN is required to complete the FAFSA application and sign the Master Promissory Note (MPN). This is the same PIN used to complete the FAFSA. FGCU will receive the completed application and credit decision electronically within 2-3 business days and award the PLUS Loan to the student's account accordingly.

Interest Rate and Fees 2011-2012 

*The rebate is an up-front rebate that requires the borrower, at the time of repayment, to make the first 12 payments on time. Failure to do so will result in the initial rebated amount to be added back to the balance of the loan.

Private/Alternative Loans

The Office of Financial Aid & Scholarships encourages all students to complete the Free Application for Federal Student Aid (FAFSA) and exhaust all federal, state, and institutional aid eligibility, including Federal Stafford Loans,  before applying for a private loan. It is strongly recommended that students contact a Financial Aid Officer prior to applying for a private loan.

Additional Information on Private Loans

• You may select any lender of your choice. FGCU does not recommend any particular lender and does not maintain a preferred lender list.
• The lender will conduct a credit check prior to approval.
• Interest rates, fees and terms vary among lenders. Contact the lender for detailed information on rates and terms.
• The borrower (student) must be enrolled at least half-time in a degree program and be meeting standards of academic progress.
• Most lenders require a co-signer with good credit.
• Processing time for private loans may take up to 2 to 3 weeks.
• It is strongly recommended that you borrow Federal Direct Stafford Loans and Federal Direct PLUS Loans before considering a private loan.