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Federal Direct Loans

Federal Direct Loans are available to all eligible students who complete a Free Application for Federal Student Aid (FAFSA) and are enrolled in school on at least a half-time basis. The Office of Financial Aid Services will offer the type and amount of Federal Direct Loan that you are eligible for when we prepare your Financial Aid Offer. Below you will find important details about the Federal Direct Loan program.

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Subsidized vs. Unsubsidized

Subsidized

Subsidized eligibility is based on financial need. The government pays any interest that accrues on a Subsidized Federal Direct Loan while the student is enrolled in school at least half-time and through the grace period. 

A Subsidized Federal Direct Loan is only available for students enrolled in undergraduate degree programs or the post-baccalaureate teacher’s certificate program. Students enrolled in graduate degree programs do not qualify for Subsidized Federal Direct Loans.

Unsubsidized

All students, regardless of degree or certificate program enrollment and financial need, are eligible for Unsubsidized Direct Loans. The government will not pay any interest that accrues on an Unsubsidized Federal Direct Loan.

Interest Rates and& Fees

The interest rates for Federal Direct Loans differ depending upon degree or certificate program enrollment. The interest rate assigned is fixed, and interest accrual will begin upon disbursement; which takes place after ̽»¨ÉçÇø’s Add/Drop period each semester.

Note: Federal Direct Loans have an up-front fee, referred to as an “origination fee."

Program TypeFederal Direct Loan TypeFixed Interest RateOrigination Fee
Undergraduate Degree & Post-Baccalaureate Teacher’s Certificate ProgramsSubsidized/Unsubsidized Federal Direct Loans6.533% for loans disbursed July 1, 2024 - June 30, 20251.057%  for loans disbursed on or after October 1, 2024 and before October 1, 2025
Graduate Degree ProgramsUnsubsidized Federal Direct Loans8.083% for loans disbursed July 1, 2025 - June 30, 20251.057%  for loans disbursed on or after October 1, 2024 and before October 1, 2025

Program TypeFederal Direct Loan TypeFixed Interest RateOrigination Fee
Undergraduate Degree & Post-Baccalaureate Teacher’s Certificate ProgramsSubsidized/Unsubsidized Federal Direct Loans5.50% for loans disbursed July 1, 2023 - June 30, 20241.057%  for loans disbursed on or after October 1, 2023 and before October 1, 2024
Graduate Degree ProgramsUnsubsidized Federal Direct Loans7.05% for loans disbursed July 1, 2023 - June 30, 20241.057%  for loans disbursed on or after October 1, 2023 and before October 1, 2024

Annual and Aggregate Loan Limits

Year in School Dependent Students (except students whose parents are unable to obtain PLUS Loans) Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
First-Year Undergraduate Annual Loan Limit $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.
Second-Year Undergraduate Annual Loan Limit $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-Year and Beyond Undergraduate Annual Loan Limit $7,500 per year-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.
Subsidized and Unsubsidized Aggregate Loan Limit $31,000-No more than $23,000 of this amount may be in subsidized loans. $57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans.

Graduate or Professional Student Annual Loan Limit $20,500 (unsubsidized only)
Subsidized and Unsubsidized Aggregate Loan Limit $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

Declining Some or All of Your Federal Direct Loans

How to Decline a Federal Direct Loan

If you do not want to borrow some or all of your Subsidized, Unsubsidized, or Graduate PLUS federal student loans offered to you, you can email us at finaid@moravian.edu from your ̽»¨ÉçÇø email account. 

If you are a Parent PLUS loan borrower, you must email us from the email account that is attached to your FSA ID. 

Entrance and Exit Counseling

Entrance Counseling

Why is Entrance Counseling important?

Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You'll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.

How to complete Entrance Counseling

Completing your Entrance Counseling is easy!

  1. Log into
    1. Log in using your FSA ID (the same ID you used for your FAFSA).
  2. Go to the Entrance Counseling Section
    1. Once logged in, navigate to the Loans and Grants tab.
    2. Click on Loan Entrance Counseling under the Loans section.
  3. Select ̽»¨ÉçÇø as your school and then select your student type
    1. You'll need to select ̽»¨ÉçÇø as the school you're attending.
    2. Choose the student type. Either Undergraduate Student or Graduate Student.
  4. Follow the prompts to complete the counseling, which includes:
    1. Information about borrowing responsibilities, repayment, interest rates, and budgeting.
    2. Interactive tools to understand how borrowing may affect your future financial situation.
    3. It generally takes about 20-30 minutes to complete.
  5. Submit and Confirm
    1. After you’ve completed the counseling, ̽»¨ÉçÇø will receive the notification in 1 or 2 days.
    2. You’ll receive a confirmation email, and the counseling will be linked to your student account.

Exit Counseling

Why is Exit Counseling important?

Exit counseling is designed to ensure you understand your responsibilities and options as a borrower. Specifically, it covers:

  • Repayment Plans: Learn about the different repayment options available, such as standard, graduated, and income-driven plans.
  • Loan Deferment and Forbearance: Understand how to temporarily delay or reduce your payments if you face financial hardship.
  • Loan Forgiveness Programs: Discover if you may qualify for federal loan forgiveness based on your career or repayment plan.
  • Avoiding Default: Gain insight into the serious consequences of loan default and how to avoid it.

How to complete Exit Counseling
You can easily complete exit counseling online:

  • Log in to the Federal Student Aid website at using your FSA ID.
  • Select Complete Exit Counseling under the Manage Loans section.
  • Follow the guided prompts to complete the process. It takes about 20-30 minutes.

Repayment

Federal Direct Loans for students are in deferment while the student is enrolled in school on at least a half-time basis. This means that you are not required to make payments on your Federal Direct Loans while you are enrolled in school until you begin repayment.

Repayment begins once the 6 month grace period ends after you are no longer enrolled in school on at least a half-time basis. The standard repayment plan Federal Direct Loans borrowers are placed on spans 10 years; however there are a variety of other flexible repayment plan options available for federal student loan borrowers to explore. 

Miscellaneous Information

  • In response to the COVID-19 emergency relief period, the interest rate on all Direct Loans has been temporarily set at 0% until at least December 31, 2022. Once the COVID-19 emergency relief period ends, the rates as described in this announcement will be in effect for loans first disbursed on or after July 1, 2022.
  • The standard 10-year repayment period begins 6 months after graduation or the student ceases to be enrolled at least half-time.
  • For students who are new borrowers on or after July 1, 2013, the period during which students may borrow Direct Subsidized Loans and the period during which the in-school interest subsidy may be provided, will be limited to 150% of the published length of their educational program.
  • Any student is able to view their loan history by logging on to