Loans

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. FGCU students are strongly encouraged to only borrow what is needed to cover their cost of attendance for the academic year.

There are three types of Federal Direct loans available at FGCU:

Federal Direct Subsidized Stafford Loans (for students only) - 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 (for students only) - 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.
Federal Direct PLUS Loans (for parents only) - are federal loans that parents of dependent undergraduate students can use to help pay education expenses. 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
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The student must complete the steps below before receiving a Federal Direct Stafford Loan:
- Complete a Free Application for Federal Student Aid (FAFSA).
- If eligible based on the FAFSA, a loan may be offered via Gulfline.
- The student has the option to accept, decline or accept a partial amount of a loan through Gulfline.
- If a NEW borrower, the student must complete an online Entrance Counseling. Please check Gulfline to see if Entrance Counseling is listed under "unsatisfied requirements."
- If a NEW borrower a MPN (Master Promissory Note) must be electronically signed at.
National Student Loan Data System (NSLDS)
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Student Loan Practices Code of Conduct
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Entrance & Exit Counseling
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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 develop a budget for managing educational expenses and helps the student understand their loan responsibilities.

Students that have graduated, completely withdrawn, or dropped below half-time status are required to complete online loan exit counseling.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

Students 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, 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 a student’s diploma.

Complete Entrance Counseling

Complete Exit Counseling
Master Promissory Note
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To take out a Direct Loan for the first time, the student must complete a Master Promissory Note (MPN). The MPN is completed online at studentaid.gov. The MPN is a legal document in which the student promises to repay loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of Federal loan(s).
Loan Repayment Options
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150% Direct Subsidized Loan Limit
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A student who is a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that they can receive Direct Subsidized Loans. In general, a student may not receive Direct Subsidized Loans for more than 150% of the published length of their program. This is called the “maximum eligibility period”. The published length of any program of study is found in FGCU’s catalog. If a student receives Direct Subsidized Loans for one program and then changes to another program, the Direct Subsidized Loans received for the earlier program will generally count against the new maximum eligibility period.

After the student has received Direct Subsidized Loans for their maximum eligibility period, they are no longer eligible to receive additional Direct Subsidized Loans. However, the student may continue to receive Direct Unsubsidized Loans.

In addition, if a student continues to be enrolled in any undergraduate program after receiving Direct Subsidized Loans for their maximum eligibility period, interest will begin to accrue (with certain exceptions) on Direct Subsidized Loans.
Loan Information & Resources for Veterans and Military Families
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Federal Loan Fees & Interest Rates

Loan Type	First Disbursement Date	Interest Rate
Direct Subsidized Loans & Direct Unsubsidized Loans	On or after 7/1/23 and before 6/30/24	5.50%
Direct Subsidized Loans & Direct Unsubsidized Loans	On or after 7/1/24 and before 6/30/25	6.53%

LOAN TYPE	FIRST DISBURSEMENT DATE	Origination Fee
Direct Subsidized Loans & Direct Unsubsidized Loans	On or after 10/1/19 and before 10/1/20	1.059%
Direct Subsidized Loans & Direct Unsubsidized Loans	On or after 10/1/20 and before 10/1/25	1.057%

Borrowing Limits for Federal Subsidized Stafford and Unsubsidized Stafford Loans

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

Dependent Students	Max Subsidized	Unsubsidized	= Total Annual Amount/limit
Freshman	$3,500	$2,000	$5,500
Sophomore	$4,500	$2,000	$6,500
Junior or Senior	$5,500	$2,000	$7,500

Independent Students and Plus Denials	MAX SUBSIDIZED	UNSUBSIDIZED	= TOTAL ANNUAL AMOUNT/LIMIT
Freshman	$3,500	$6,000	$9,500
Sophomore	$4,500	$6,000	$10,500
Junior or Senior	$5,500	$7,000	$12,500

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

How to Apply for a PLUS Loan

PLUS Loan applications can be completed online at https://studentaid.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 FSA ID is required to complete the FAFSA application and to sign the Master Promissory Note (MPN). This is the same FSA ID used to complete the FAFSA. FGCU will receive the completed application and credit decision electronically within 2-3 business days and will award the PLUS Loan to the student's account accordingly.

LOAN TYPE	FIRST DISBURSEMENT DATE	INTEREST RATE
Direct PLUS Loans	On or after 7/1/23 and before 6/30/24	8.05%
Direct PLUS Loans	On or after 7/1/24 and before 6/30/25	9.08%

LOAN TYPE	FIRST DISBURSEMENT DATE	Origination Fee
Direct PLUS Loans	On or after 10/1/19 and before 10/1/20	4.236%
Direct PLUS Loans	On or after 10/1/20 and before 10/1/25	4.228%

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 Advisor 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.