Federal Direct loans are a federally funded educational loan program. Students awarded a subsidized Direct Loan OR unsubsidized loans as part of a financial aid award and accept that award will have a loan processed by the College.
Information regarding the completion of a Master Promissory Note (MPN) and Entrance Counseling will be included with the award letter. The Federal government will pay for the accruing interest while the student is enrolled on at least a half-time basis.
Federal Subsidized and Unsubsidized eligibility
- U.S. citizens or permanent legal residents.
- Enrolled in school at least half-time.
- Male students must satisfy requirements under the Selective Service Act.
- If student is in default on a prior loan or owe a refund on grant money, he or she will NOT be able to borrow further.
- Loan awards cannot exceed the cost of education as determined by the school.
How to apply for Federal Direct Subsidized or Unsubsidized Loans?
- Apply for FAFSA (Free Application for Federal Student Aid) https://fafsa.ed.gov/
- Florida SouthWestern State College school code is: 001477
- Be enrolled in at least 6 credit hours
- Accept or decline loans offered to you based on your eligibility through FSW Portal
- Complete Entrance Counseling at www.studentaid.gov
- Complete a Master Promissory Note (MPN) at www.studentaid.gov
When can I start repaying my loan?
You do not have to begin repaying most federal student loans until after you leave college or drop below half-time enrollment. Your lender must provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment. Keep in mind that your loan may have a grace period. More information about repayment.
What is a grace period?
The grace period is a set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan. The grace period gives you time to get financially settled and to select your repayment plan. The Subsidized Loans grace period is 6 months before payments are due.
How much can I borrow?
Loan limits
The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. More information can be found at studentaid.gov.
What are the interest amounts?
What is Exit Counseling?
Student borrowers who have graduated, withdrawn or dropped to less than 6 credits for a semester are required to complete a loan exit interview within 30 days after they leave the college or drop to less than half time enrollment.
Visit www.studentaid.gov and log in with your FSA ID to guide you through the required process.