Do you have a Federal Direct Loan for 2020-21 that has not yet disbursed?
This includes the following loan types:
- Federal Subsidized Loans
- Federal Unsubsidized Loans
- Federal Parent PLUS Loans
- Federal Graduate PLUS Loans
Loan origination fees will change for the 2020-21 academic year beginning on October 1, 2020
- The origination fee for Direct Subsidized/Unsubsidized loans first disbursed on/after Oct 1, 2020 and before Oct 1, 2021 is 1.057%
- The origination fee for Direct Graduate PLUS loans first disbursed on/after Oct 1, 2020 and before Oct 1, 2021 is 4.228%
- The origination fee for Direct Parent PLUS loans first disbursed on/after Oct 1, 2020 and before Oct 1, 2021 is 4.228%
What does this mean for you?
- If any part of your loan has disbursed before October 1, this will not affect you.
- If your subsidized/unsubsidized loan(s) do not disburse before October 1, then we must cancel your loan(s). Only loans that were previously accepted will be reinstated in accepted status with the updated fee(s). If we determine that the new loan is a different amount than what was initially accepted, you will have to accept the new loan in LionPATH once it has been added to your Aid Award Summary. We will send you an email when the loan is ready to be accepted.
- If your Parent or Graduate PLUS loan(s) does not disburse before October 1, then your loan will be cancelled and you will have to re-apply. We are not able to reinstate PLUS loans. If you have pursued an Endorser or completed the Appeal process, this process will need to be completed again if your new loan application is denied.
If you want the loan to disburse prior to October 1:
- Clear any holds in LionPATH
- Accept your subsidied/unsubsidized/GraduatePLUS loans in LionPATH
- Complete Entrance Counseling
- Complete the Master Promissory Note
- Finalize the PLUS endorser process