Financial AidFederal Direct LoansBarry University participates in the U.S. Department of Education’s William D. Ford Federal Direct Loan Program. (Direct Loans). The Direct Loan Program provides students with a low interest way to borrow money to pay for their higher education. Your first step in applying for Federal Student Aid is to fill out the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov.The U.S. Department of Education is the lender for Direct Loans rather than a bank or other financial institution. Direct Loans are:Simple - You borrow directly from the federal government and have a single contact - the Direct Loan Servicing Center- for everything related to the repayment of your loans, even if you receive Direct Loans at different universities.Convenient - You will have online access to your Direct Loan account information 24 hours a day, 7 days a week.Flexible - You can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.How to Apply for a Federal Direct Stafford LoanStep 1: Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov. After Barry University receives your FAFSA and if you are eligible for a Federal Direct Stafford Loan (subsidized or unsubsidized), it will be included in your financial aid package.Step 2: Complete a Federal Direct Stafford Loan Master Promissory Note (MPN) on the U.S. Department of Education's Direct Loan MPN website. https://dlenote.ed.gov/ Once on this site, please select the "Complete New MPN for Student Loans" option. Then, Select "Subsidized/Unsubsidized" option. Follow the steps to complete the MPN. If you are experiencing technical difficulty signing the MPN, please contact the Department of Education's customer service center at 800-557-7394.Step 3: Complete an entrance loan counseling session so that you will know your rights and responsibilities as a borrower. The on-line session will take you about ten minutes to complete. Complete a Federal Direct Loan Counseling session at https://www.dl.ed.gov/ Remember, we cannot process your Direct Loan unless you have completed all three steps above.Types of Direct LoansSubsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.PLUS: unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.Interest Rates & FeesFederal Direct Loan Fixed Interest Rate (As of January 2010)**UndergraduateSubsidized: 5.60 %Unsubsidized: 6.80 %GraduateSubsidized: 6.80 %Unsubsidized: 6.80 %* Rates apply to loans with first disbursement on or after July 1, 2009. **The U.S. Department of Education's Direct Loan Servicer will send you a quarterly loan interest statement.Other Fees Associated with the Federal Direct LoansYes. There is a loan origination fee for borrowing Direct Subsidized/Unsubsidized Loans. The Direct Loan origination fee effective July 1, 2009 is 1.5%. These fees will be subtracted proportionately from each loan disbursement. 100% of this fee goes to the federal government to reduce the cost of the loan program.What Amounts can You Borrow?DependentAnnual loan limit1st year student$5,500($3,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)2nd year student$6,500($4,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)3rd/4th year student$7,500($5,500 between subsidized and unsubsidized, plus an additional $2,000 unsubsidized)IndependentAnnual loan limit1st year student$9,500($3,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized)2nd year student$10,500($4,500 between subsidized and unsubsidized, plus an additional $6,000 unsubsidized)3rd/4th year student$12,500($5,500 between subsidized and unsubsidized, plus an additional $7,000 unsubsidized)Graduate or Professional$20,500($8,500 between subsidized and unsubsidized, plus an additional $12,000 unsubsidized)Lifetime LimitsUndergraduate dependent$31,000(up to $23,000 may be subsidized)Undergraduate independent$57,500(up to $23,000 may be subsidized)Graduate or professional$138,500(up to $65,000 may be subsidized) or $224,000 (for health professions). Limits may vary by school. See your financial aid officer for more information.Other Ways to Finance Your EducationFederal Perkins Loan Program: This is a low-interest (5%) loan made by Barry University, but federally subsidized. It is awarded to you based on exceptional financial need. Repayment begins nine months after leaving school or student dropping below half-time enrollment.Alternative Loans: If you have utilized all other forms of financial aid and still require additional funding to pay your education, banks and other lending corporations make available education loans which require you and sometimes a co-signer to pass a credit check. These loans vary according to each lender. You should look into them closely before committing to a particular lender in order to determine your responsibilities according to their terms and conditions.Direct Loans ResourcesDirect Loan Entrance or Exit Counseling:https://www.dl.ed.gov/borrower/CounselingSessions.do?cmd=initializeContext Electronic Master Promissory Notehttps://dlenote.ed.gov/empn/index.jsp Repayment Informationhttp://studentaid.ed.gov/PORTALSWebApp/students/english/repaying.jsp Direct Loan Servicing https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp National Student Loan Data System (NSLDS) http://www.nslds.ed.gov/nslds_SA/ Loan Repayment Calculatorhttp://www.finaid.org/calculators/loanpayments.phtml Please contact the Financial Aid Office at 1-800-695-2279 or e-mail us at firstname.lastname@example.org should you require any assistance.