Bon Secours Memorial College of Nursing participates in the William D. Ford Federal Direct Loan Program, offered through the Department of Education. Federal Stafford loans are low-interest, long-term loans. A student must be enrolled for at least six credits in an eligible degree program and be making satisfactory academic progress in order to be eligible for a Federal Stafford Loan.

Students with financial need can obtain a subsidized Federal Direct Stafford Loan. This means the U.S. Department of Education will pay the interest charges to the student's lender as long as the student is enrolled on at least a half-time basis (six or more credits) and during a six-month period following enrollment (grace period). At the end of the grace period, repayment of the loan will begin and interest begins to accrue to the student borrower. Repayment may extend up to ten years but borrowers must make payments of at least $50 per month.

Students who do not qualify for the subsidized (need-based) Federal Direct Stafford Loan can obtain an unsubsidized (non-need-based) Federal Direct Stafford Loan. Unlike the subsidized Loan, the student is responsible for the interest obligation while enrolled. The student, while enrolled for at least a half-time basis (six or more credits), may pay interest only or have the interest capitalized (added to the principal). The interest rate for Direct Subsidized Loans for undergraduates with a first disbursement date between July 1, 2010, and June 30, 2011 is 4.5% and Direct Unsubsidized Loans for all students is 6.8%. For interest rates after June 30, 2011 go to: http://www2.ed.gov/offices/OSFAP/DirectLoan/calc.html

Students borrowing Federal Direct Stafford Loans must complete an entrance counseling, financial aid awareness, and exit counseling session at www.studentloans.gov. First-time Federal Direct Stafford loan borrowers at BSMCON must complete an Entrance Loan Counseling and Financial Aid Awareness Session. ALL Federal Direct Stafford loan borrowers must complete an Exit Loan Counseling Session upon graduation or withdrawal. Repayment begins six months after a student leaves school because of graduation or other reasons, or he/she drops below half-time level. All loan applicants must have completed a Free Application for Federal Student Aid (FAFSA) and may not have defaulted on prior loans or borrowed their maximum lifetime amounts as determined by the Federal government. Students may not borrow more than the cost of their education minus other financial aid awarded them.

The Office of Financial Aid must approve all federal loans and reserves the right to refuse loan applications due to academic deficiency or evidence that a student may have difficulty managing loan debt.

Annual and Aggregate Loan Limits

The following chart provides maximum annual and aggregate (total) loan limits for subsidized and unsubsidized Direct Stafford Loans.

Year	Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans	Independent Undergraduate Student (and dependent students whose parents are unable to obtain PLUS Loans)	Graduate and Professional Degree Student
First Year	$5,500—No more than $3,500 of this amount may be in subsidized loans.	$9,500—No more than $3,500 of this amount may be in subsidized loans.	$20,500—No more than $8,500 of this amount may be in subsidized loans.
Second Year	$6,500—No more than $4,500 of this amount may be in subsidized loans.	$10,500—No more than $4,500 of this amount may be in subsidized loans.
Third and Beyond (each year)	$7,500—No more than $5,500 of this amount may be in subsidized loans.	$12,500—No more than $5,500 of this amount may be in subsidized loans.
Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits)	$31,000—No more than $23,000 of this amount may be in subsidized loans.	$57,500—No more than $23,000 of this amount may be in subsidized loans.	$138,500—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study.

 

Note: These annual loan limit amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. You can have one type of loan or a combination of both. Because you can't borrow more than your cost of attendance minus any other financial aid you'll get, you may receive less than the annual maximum amounts. Also, the annual loan limits assume that your program of study is at least a full academic year.

The maximum annual and total loan limits include any Stafford Loans you may have received under the FFEL Program.

How to Apply for a Federal Direct Stafford Loan
If you are a student interested in applying for a Federal Stafford Loan, you will need to follow these steps:

1. Complete the FAFSA each year at http://www.fafsa.ed.gov.
2. Apply to the College and be admitted into an approved Program and be making Satisfactory Academic Progress (SAP).
3. Comply with any information requests from the Office of Financial Aid, such as verification items and tax information.
4. Complete the Bon Secours Memorial College of Nursing’s “Federal Direct Stafford Loan Request Form” by the deadline.
5. Complete Loan Entrance counseling. All first time borrowers at BSMCON are required to complete Loan Entrance Counseling. You can do this online at https://studentloans.gov.
6. Complete Financial Aid Awareness session. All first time borrowers at BSMCON are required to complete a Financial Aid Awareness session. You can do this online at https://studentloans.gov.
7. Complete your Master E-Promissory Note (MPN). The website to complete the E-Promissory Note electronically is https://studentloans.gov. Make sure to choose the “Complete New MPN for Student Loans” link.        
8. After receiving you financial aid award notification (Award Letter), please complete the Federal Direct Stafford Loan Request Form if you are interested in applying for a student loan.
   
   150% Limit on Direct Subsidized Loans

   On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21) (Public Law 112-141) was enacted. MAP-21 added a new provision to the Direct Loan statutory requirements that limits a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the length of the borrower’s educational program. Under certain conditions, the provision also causes first-time borrowers who have exceeded the 150 percent limit to lose the interest subsidy on their Direct Subsidized Loans.

   Note: Only first-time borrowers on or after July 1, 2013, are subject to the new provision. Generally, a first-time borrower is one who did not have an outstanding balance of principal or interest on a Direct Loan or on an FFEL Program Loan on July 1, 2013.

   Beginning June 28, 2013, entrance counseling materials on http://ifap.ed.gov/eannouncements/attachments/051613DirectSubsidizedLoanLimit150PercentAnnounce1Attach.pdf  will, as a temporary measure, include a link to information regarding the 150 percent limit in the attached documents.

Finally, allow four to six weeks for College processing, depending on the time of the year.

NOTE: Students who drop below half-time status (six credit hours) will have their loans canceled and will enter their grace period for repayment.